Post by kalpana on Sept 30, 2006 10:28:50 GMT 5
Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a single unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a single, unified database to store data for the various system modules.
The term ERP originally implied systems designed to plan the utilization of enterprise-wide resources. Although the acronym ERP originated in the manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter. Business, non-profit organizations, non governmental organizations, governments, and other large entities utilize ERP systems.
Additionally, it may be noted that to be considered an ERP system, a software package generally would only need to provide functionality in a single package that would normally be covered by two or more systems. Technically, a software package that provides both Payroll and Accounting functions (such as QuickBooks) would be considered an ERP software package.
However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between systems, and provides additional benefits that range from standardization and lower maintenance (one system instead of two or more) to easier and/or greater reporting capabilities (as all data is typically kept in one database).
Examples of modules in an ERP which formerly would have been stand-alone applications include: Manufacturing, Supply Chain, Financials, CRM, Human Resources, and Warehouse Management.
Implementation
Because of their wide scope of application within the firm, ERP software systems rely on some of the largest bodies of software ever written. Implementing such a large and complex software system in a company used to involve an army of analysts, programmers, and users. This was, at least, until the development of the Internet allowed outside consultants to gain access to company computers in order to install standard updates. ERP implementation, without professional help, can be a very expensive project for bigger companies, especially transnationals. Companies specializing in ERP implementation, however, can expedite this process and can complete the task in under six months with solid pilot testing.
Enterprise resource planning systems are often closely tied to supply chain management and logistics automation systems. Supply chain management software can extend the ERP system to include links with suppliers.
To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. Consulting in ERP involves three levels, namely top level systems architecture, business process consulting (primarily re-engineering) and technical consulting (primarily programming and tool configuration activity). A systems architect designs the overall dataflow for the enterprise including the future dataflow plan. A business consultant studies an organization's current business processes and matches them to the corresponding processes in the ERP system, thus 'configuring' the ERP system to the organization's needs. Technical consulting often involves programming. Most ERP vendors allow modification of their software to suit the business needs of their customer.
Customizing an ERP package can be very expensive and complicated, because many ERP packages are not designed to support customization, so most businesses implement the best practices embedded in the acquired ERP system. Some ERP packages are very generic in their reports and inquiries, such that customization is expected in every implementation. It is important to recognize that for these packages, it makes more sense to buy third party reporting packages that interface well to particular ERP, than to reinvent what tens of thousands of other clients of that same ERP have needed to develop.
Today there are also web-based ERP systems. Companies would deploy web-based ERP because it requires no client side installation, and is cross-platform and maintained centrally. As long as you have an Internet connection, or a network connection to a system installed on the LAN, you can access web-based ERPs through typical web browsers.
Advantages
In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. Tasks that need to interface with one another may involve:
• design engineering (how best to make the product)
• order tracking from acceptance through fulfillment
• the revenue cycle from invoice through cash receipt
• managing interdependencies of complex Bill of Materials
• tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced)
• the Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.
Proprietary ERP software
• 24SevenOffice Start, Premium, Professional and Custom from 24SevenOffice
• BPCS from SSA Global Technologies
• Enterprise Business System from Made2Manage Systems
• Epicor Enterprise from Epicor
• IFS Applications from Industrial and Financial Systems
• JD Edwards EnterpriseOne from Oracle
• kVASy4 from SIV.AG
• Lawson Financials from Lawson Software
• Macola ERP from Exact Software
• ManMan from Ask Computer
• MFG/PRO from QAD
• Microsoft Dynamics
• Movex from Intentia
• NetERP from NetSuite Inc.
• Oracle e-Business Suite from Oracle
• PeopleSoft from Oracle
• Ramco e.Applications from Ramco Systems
• Sage MAS 500 from The Sage Group
• SAP R/3 from SAP
• mySAP from SAP
• SSA ERP LN from SSA Global Technologies
• SYSPRO ERP software from SYSPRO
• AMS Advantage from CGI Group (formerly American Management Systems)
• 1C:Enterprise from 1C Company
Open Source ERP software
• Adempiere
• Compiere
• ERP5
• Fisterra
• GNU Enterprise
• OFBiz
The term ERP originally implied systems designed to plan the utilization of enterprise-wide resources. Although the acronym ERP originated in the manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter. Business, non-profit organizations, non governmental organizations, governments, and other large entities utilize ERP systems.
Additionally, it may be noted that to be considered an ERP system, a software package generally would only need to provide functionality in a single package that would normally be covered by two or more systems. Technically, a software package that provides both Payroll and Accounting functions (such as QuickBooks) would be considered an ERP software package.
However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between systems, and provides additional benefits that range from standardization and lower maintenance (one system instead of two or more) to easier and/or greater reporting capabilities (as all data is typically kept in one database).
Examples of modules in an ERP which formerly would have been stand-alone applications include: Manufacturing, Supply Chain, Financials, CRM, Human Resources, and Warehouse Management.
Implementation
Because of their wide scope of application within the firm, ERP software systems rely on some of the largest bodies of software ever written. Implementing such a large and complex software system in a company used to involve an army of analysts, programmers, and users. This was, at least, until the development of the Internet allowed outside consultants to gain access to company computers in order to install standard updates. ERP implementation, without professional help, can be a very expensive project for bigger companies, especially transnationals. Companies specializing in ERP implementation, however, can expedite this process and can complete the task in under six months with solid pilot testing.
Enterprise resource planning systems are often closely tied to supply chain management and logistics automation systems. Supply chain management software can extend the ERP system to include links with suppliers.
To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. Consulting in ERP involves three levels, namely top level systems architecture, business process consulting (primarily re-engineering) and technical consulting (primarily programming and tool configuration activity). A systems architect designs the overall dataflow for the enterprise including the future dataflow plan. A business consultant studies an organization's current business processes and matches them to the corresponding processes in the ERP system, thus 'configuring' the ERP system to the organization's needs. Technical consulting often involves programming. Most ERP vendors allow modification of their software to suit the business needs of their customer.
Customizing an ERP package can be very expensive and complicated, because many ERP packages are not designed to support customization, so most businesses implement the best practices embedded in the acquired ERP system. Some ERP packages are very generic in their reports and inquiries, such that customization is expected in every implementation. It is important to recognize that for these packages, it makes more sense to buy third party reporting packages that interface well to particular ERP, than to reinvent what tens of thousands of other clients of that same ERP have needed to develop.
Today there are also web-based ERP systems. Companies would deploy web-based ERP because it requires no client side installation, and is cross-platform and maintained centrally. As long as you have an Internet connection, or a network connection to a system installed on the LAN, you can access web-based ERPs through typical web browsers.
Advantages
In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. Tasks that need to interface with one another may involve:
• design engineering (how best to make the product)
• order tracking from acceptance through fulfillment
• the revenue cycle from invoice through cash receipt
• managing interdependencies of complex Bill of Materials
• tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced)
• the Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.
Proprietary ERP software
• 24SevenOffice Start, Premium, Professional and Custom from 24SevenOffice
• BPCS from SSA Global Technologies
• Enterprise Business System from Made2Manage Systems
• Epicor Enterprise from Epicor
• IFS Applications from Industrial and Financial Systems
• JD Edwards EnterpriseOne from Oracle
• kVASy4 from SIV.AG
• Lawson Financials from Lawson Software
• Macola ERP from Exact Software
• ManMan from Ask Computer
• MFG/PRO from QAD
• Microsoft Dynamics
• Movex from Intentia
• NetERP from NetSuite Inc.
• Oracle e-Business Suite from Oracle
• PeopleSoft from Oracle
• Ramco e.Applications from Ramco Systems
• Sage MAS 500 from The Sage Group
• SAP R/3 from SAP
• mySAP from SAP
• SSA ERP LN from SSA Global Technologies
• SYSPRO ERP software from SYSPRO
• AMS Advantage from CGI Group (formerly American Management Systems)
• 1C:Enterprise from 1C Company
Open Source ERP software
• Adempiere
• Compiere
• ERP5
• Fisterra
• GNU Enterprise
• OFBiz