Enterprise Resource Planning (ERP) has transformed how businesses around the world operate, communicate, and produce. The purpose of this paper is to explore what ERP is and how it has impacted businesses. The software can be custom fit to meet the individual needs of every type of company. It integrates business functions into a unified business process with more speed and accuracy. Management structures and corporate cultures have also been impacted by ERP.
ERP is software that manages information for all departments within a company. Its objective is to get the right information to the right person at the right time. ERP software is typically modular but integrated. It consists of multiple modules that are connected to each other so there is a communication flow. Each module is focused on one area of business procedures. Companies may pick which modules they want integrated into their specific system. Some of the many options of areas of operations include: product planning, manufacturing processes, sales, marketing, finance, human resources and procurement (Davenport, 1998).
Since modules are connected, company management could run reports on any aspects of the business to get a complete view of activities, thus enabling them to make strategic decisions. It also helps them understand the status of their business. Business users are able to perform day-to-day operations such as data entry and operational reports. By using the software a company can align themselves to industry best practices. It shines light on what areas need adjusting in order to streamline their business process. It improves financial compliance with regulatory standards thereby, reducing risk (Hammer & Stanton, 1999).
Maintaining separate systems to manage date can be redundant and costly. ERP software is considered vital tool for organizational excellence because it integrates and streamlines data flow, enables direct access to real-time operating statistics, and enables precise transactions (Shaul & Tauber, 2013). Fragmented organizations can have more confusion and conflict. Studies show that ERP system adoptions allow managers more flexibility to manage earnings and their earnings release dates. ERP systems have also been shown to potentially increase the likelihood of financial statement management (Brazel & Dang, 2008).
ERP has significantly impacted supply chains by addressing the issues in manufacturing and distribution. It plays a vital role in centralizing transaction data.
This paper addresses the issues being faced by the ERP Systems, how the problem was approached and led the search for answers to the achievement of the objectives. The subsequent are the queries that have been addressed in this research.
Keda could not afford not to implement an ERP system if it was to retain its leadership position and continue growing. Its silo-based business units often duplicated processing tasks, resulting in unnecessarily high costs. Furthermore, business decision-making and strategy were hampered by communication
ERP is a huge resource managing tool used by companies today. Some systems preform general ledger, accounting and order management for the company. ERP systems are a great asset and greatly improve a company, so a company should defiantly look into implementing ERP systems! However, Gartner estimates that 75% of all ERP projects fail. Why is there so much of a high failure rate? This paper will take an in depth look at reasons to why ERP systems fail.
SAP comprises of several modules such as marketing and sales, product design and development, human resources, finance and accounting, utilities for marketing and sales and production and inventory control. Having all these modules combined in one software of which to some extent can be modified to fit the business targets, SAP ERP software collects, combines, analyses and generates data from the separate entities as one collective report that can easily be read and understood. The single generated report enables organizations or companies to have defi...
When an ERP is done correctly, the company can enhance flexibility, profit and productivity, while eliminating cost and inefficiencies. However, not all ERP systems are
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
In order to survive in this competitive business world, every business must produce or offer not only a better product or service, they must also offer better customer service, reduce their production costs and overhead costs, have a more well-planned management system, a highly reliable infrastructure, and the list is endless. Many of these can be achieved through a customized enterprise resource planning system (ERP). ERPs serve as “one comprehensive database to house all of the company’s corporate information”. However if these systems are not used correctly with the necessary change in management of people and technology it can result in failure.
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
The promises from the vendors before the ERP implementation and the implementation result does not always correspond. Moreover, those firms believed that implementation of an ERP-solution would directly generate competitive advantages in terms of new orders and increased profit. Instead, those firms have gone through a protracted and very expensive ERP implementation.
- Rosario, J.G, 2000, "On the leading edge: critical success factors in ERP implementation projects", BusinessWorld, Philippines.
To conclude, a sophisticated accounting system like ERP plays an important role within a company like JPL. The system facilitates a company-wide integrated Information Systems covering all functional areas such as manufacturing, sales and distribution, accounts, payables, receivables, inventory, and so on. ERP provides complete integration of the system not only across departments but also across the entire company. Not only that, ERP also provides an opportunity for improvement and refinement in the business processes on a continuous process.
ERP systems are designed to enhance organization’s competitiveness by upgrading an organization’s ability to generate timely and accurate information throughout the enterprise and its supply chain. A successful ERP system implementation can shorten production cycles,increa...
TSAI, W., CHIEN, S., FAN, Y. & CHENG, J. (2005) Critical management issues in implementing ERP: empirical evidences from Taiwanese firms. International Journal of Services and Standards, 1, 299-318.
Enterprise resource planning is a detailed system of information that provides all the factors of business to enable information and data related to a company to be easily viewable and accessible at suitable locations. Enterprise resource planning (ERP) software programs installed on personal computers networked to other systems of computers entail modules of human resource, finance, inventory, production and sales customized for particular requirements of a company, the (ERP) capacity enables the organization to bring down operation cost and improve efficiency.
“An Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”.( Haag, Cummings, Phillips, S, M, A (2007). Mangement Information Systems. New Yory, NY: The McGraw-Hill Company Inc..)