Introduction To ERRP Systems And Issues Associated With The ERP System

INTRODUCTION TO ERP SYSTEMS AND ISSUES ASSOCIATED WITH THEIR IMPLEMENTATION

ERP stands for Enterprise Resource Planning. In the beginning it was a normal software package for inventory and later on developed to MRP systems. In the early 1990’s MRP-II was further extended to cover areas like engineering, finance, human resources, project management, i.e. the almost complete gamut of activities within any business enterprise and the term ERP was coined.

It is commercial software that enables integration of transaction oriented data and process throughout an organization. It comprises of several modules which enables the cross-organization integration based on the transaction data and business process. It is not a distinct object but acts as an umbrella by covering the whole business process. It supports the entire organization at various levels by providing with information in a highly integrated manner.

ERPEnterprise resource planning (ERP) systems, such as SAP, is broadly used in many large companies over a period of time. ERP is paid a little attention in media journals but it has moderate impact on Management accounting and accountants. However, it is not claimed that SAP was the driver of these changes but rather it is argued that the characteristics of SAP in integration, standardization, routinization and centralization facilitated changes which were already taking place within the company.

ERP seeks to integrate and streamline the business process.

The implementation of ERP requires massive changes to the current system in order to fully avail the benefits of ERP. It needs commitment from top management for integration which is inclusive of proper selection and training of management consultants and employees. Practically...

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...evel that’s suits the company’s business function. The companies are allowed to select best matching software that suits the business activities from various vendors.

ERP systems

What is an ERP system

Enterprise Resource Planning (ERP) is a structured approach, which upon installation connects different components of an entire organization into and one integrated ERP system. The data’s are transformed and organized to information and which in turn supports decision making. The internal transaction processing is made up of core engine which in turn made from integrated modules. Setting up and implementation involves major changes to organizational process. The ERP requires individuals to upgrade their skills. Different application modules are included in the ERP to fit as a single Enterprise system. Selecting the right ERP system improvises the business process.