ERP & Future of ERP

Objectives of choosing ERP

My main objective for choosing this topic was due to a specific kind of interest I always had in management and information technology. Being a commerce background student I find myself close to the management related topics and at the other end ,study of information technology made me understand the role of information technology in the current industry through a subject which I studied in 4 th semester which was MIS. While going through this topic I got through the practical implementation of information technology on the management and how it helped it in making the task much more easier and simpler with a faster rate. A trend which has changed the shape of the entire industry not only in india but across the world .So I tried to focus on the period before and after it was implemented in the industry and what all changes occured during that phase. Evolution of ERP has created a new trend in the the industry and it would be interesting to see how it continues to move forward and create a new milestone for the industries. Implementation of ERP has helped various companies in improving their methodology,and thus has helped them to grow at a faster and steady rate.

Description of the topic

What is ERP? ERP - Definition

Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform.

ERP is a solution, which

facilitates company-wide integrated information systems, covering all functional areas performs core Corporate activities and increases customer service augmenting Corporate Image

The Current Scenario

Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software Platforms & practices Poor connectivity between different

 Organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop Integrated software

Evolution of ERP

1960s - Systems Just for Inventory Control

1970s - MRP Material Requirement Planning (Inventory with material planning & procurement)

1980s - MRP II Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.)

Mid 1990s - ERP Enterprise Resource Planning (Covering all the activities of an Enterprise)

2000 onwards ERP II Collaborative Commerce (Extending ERP to external business entities)

ERP Benefits

 Cross-functional process orientation with high visibility Enables exchange of information throughout the supply chain in real time Reduces operations costs Reduces cycle times Facilitates bottleneck identification and management

Improved inventory management and inventory cost reduction Improved customer service levels, material shortages and reduced late deliveries Standardized and normalized data and data formats

Refrences

1. Pankaj Sharma. Enterprise Resource Planning. Aph Publishing Corporation, Newdelhi, 2004.

2. Hanson, J.J. "Successful ERP Implementations Go Far Beyond Software." San Diego Business Journal (5 July 2004).

3. Olinger, Charles. "The Issues Behind ERP Acceptance and Implementation." APICS: The Performance Advantage

4. Millman, Gregory J. "What Did You Get from ERP and What Can You Get?" Financial Executive (May 2004).