Enterprise Resource Planning

Enterprise Resource Planning

Enterprise Resource Planning (ERP) systems integrate (or attempt to integrate) all data and processes of an organization into a unified system

Definitions

Rosemann (1999)

described the ERP system as packaged (but customisable) software applications, which manage data from various organizational activities and provide a fully integrated solution to major organizational data management problems. They provide for both the core administrative functions, such as human resource management and accounting, as well as integrated modules which can be selected to support key business processes, such as warehousing, production and client management.

O’Leary

defined ERP system as “computer-based systems designed to process anorganization’s transactions and facilitate integrated and real-time planning, production,and customer response.”

He concluded the following characteristics of ERP system:

 ERP systems are packaged software designed for a client server environment, whether traditional or web-based.

 ERP systems integrate the majority of a business’s processes.

 ERP systems process a large majority of an organization’s transactions.

 ERP systems use an enterprise-wide database that typically stores each piece of data once.

 ERP systems allow access to the data in real time.

 In some cases, ERP allows an integration of transaction processing and planning activities (e.g., production planning).

 support for multiple currencies and languages (critical for multinational

companies);

 support for specific industries (e.g., SAP supports a wide range of industries,including oil and gas, health care, chemicals, and banking);

 ability to customize without programming (e.g., switch setting).

W...

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...the product works before they sign on the bottom line

 No Scope Verification

Controversial relationships between the client and implementation partner stop from the fact that the client feels that the implemented ERP solution does not cater to their business needs depending on the documented scope, and the end users cannot perform all these tasks that were implemented within the legacy systems without difficulty

References

For “Geneva”

SAP R/3 Implementation at Geneva Pharmaceuticals

For “Nestle USA”

Case study ERP Implementation at Nestle by Derek S. Dieringer

http://www.uwosh.edu/faculty_staff/wresch/ERPNestle.htm

For “Hemas Holdings PLC Sri Lanka”

http://www-01.ibm.com/software/success/cssdb.nsf/cs/STRD-7CMFS6?OpenDocument&Site=gicss67trav&cty=en_us

For other data

http://www.erpwire.com/erp-articles/criteria-for-erp-implementation.htm