Information Technology And Enterprise Resource Planning Essay

Information Technology And Enterprise Resource Planning Essay

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Information Technology/Enterprise Resource Planning (ERP)
Technology is continually changing and the need for advanced information technology is becoming an essential requirement for businesses today. In fact, businesses are more dependent than ever on technology as it becomes increasingly utilized. As technological capabilities are increased, the need for capable, compatible systems dramatically changes. The days of pre-electronic communications are gone and have been replaced with the demand for advanced systems. These advanced systems, known as integrated systems, are necessary to increase efficiency and maintain a competitive edge. The purpose of this project is to examine one such integrated system, known as, Enterprise Resource Planning. The analysis will include a history and functions of the system, determine both advantages and disadvantages of the system and lastly, provide information on the major suppliers of the ERP system.
“Enterprise Resource Planning was born from its predecessor, Manufacturing Resource Planning (MRP). During its formative years in the 1960s, MRP was referred to as Manufacturing Requirements Planning” (The History, n.d.). The history began in the early years with attempts for this system to calculate production demand requirements. These systems were not only massive and expensive, they also required a large technical staff to manage. Companies soon realized that these early systems were designed to operate in “silos”, and as a result, many single computer systems were required to accommodate the different needs of each department. “The advent of ERP systems in the mid to late 1990’s allowed companies to purchase a single system that could encompass most, if not all business processes ...


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...litate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders” (Isco, 2012). SAP is a leader in ERP industry, with its closest rival being Oracle. While Oracle is a leader in data storage, SAP is the best in integration among modules.



Enterprise Resource Planning (ERP) Systems are one of the advanced types of information systems that help enterprises improve their competitiveness. “Enterprise resource planning (ERP) software has the objective of providing an integrated system capability – a system that can run all the operations of a company and provide access to real-time data from the various functional area of a company. Using this real-time data enables managers to continuously improve the efficiency of organizational units and processes” (Hansen & Mowen, 2013).

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