| ERP (Enterprise Resource Planning) Overview | | | | understand their business. With ERP software, |
| covers What is | | | | companies can |
| ERP, Brief history of ERP, Why is it necessary, | | | | standardize business processes and more easily |
| Market | | | | enact best |
| Leaders and the future of ERP.What is | | | | practices. By creating more efficient processes, |
| ERP?Enterprise Resource Planning or ERP is an | | | | companies |
| industry term for | | | | can concentrate their efforts on serving their |
| integrated, multi-module application software | | | | customers and |
| packages that | | | | maximizing profit.Market LeadersThe top five |
| are designed to serve and support multiple | | | | ERP vendors, SAP, Oracle Corporation, |
| business | | | | Peoplesoft, Inc. (now Oracle Corp.), JD Edwards |
| functions. An ERP system can include software | | | | & Company, |
| for | | | | and Baan International, account for 64 percent of |
| manufacturing, order entry, accounts receivable | | | | total ERP |
| and payable, | | | | market revenue. These vendors continue to play |
| general ledger, purchasing, warehousing, | | | | a major role |
| transportation and | | | | in shaping the landscape of new target markets, |
| human resources. Evolving out of the | | | | with |
| manufacturing industry, | | | | expanded product functionality, and higher |
| ERP implies the use of packaged software rather | | | | penetration |
| than | | | | rates. SAP dominates the $6.7 billion ERP |
| proprietary software written by or for one | | | | applications |
| customer. ERP | | | | market in Europe with 39% market share. Oracle |
| modules may be able to interface with an | | | | and |
| organization's own | | | | PeopleSoft come second and third respectively, |
| software with varying degrees of effort, and, | | | | followed by |
| depending on | | | | SAGE Group and Microsoft Business |
| the software, ERP modules may be alterable via | | | | Solutions.The Future of ERPIndustry analysts |
| the vendor's | | | | expect that every major manufacturing |
| proprietary tools as well as proprietary or | | | | company will buy the software, which ranges in |
| standard | | | | cost -- with |
| programming languages.Brief History of ERPThe | | | | maintenance and training -- from hundreds of |
| focus of manufacturing systems in the 1960's | | | | thousands of |
| was on | | | | dollars for a small company to millions for a large |
| Inventory control. Most of the software | | | | company. |
| packages then | | | | AMR Research of Boston says consolidation |
| (usually customized) were designed to handle | | | | among the major |
| inventory based | | | | players will continue and intensify. ERP vendors |
| on traditional inventory concepts. In the 1970's | | | | are |
| the focus | | | | expected to put more effort into e-commerce, |
| shifted to MRP (Material Requirement Planning) | | | | CRM and SCM |
| systems that | | | | initiatives, with leaders redirecting between 50% |
| translated the Master Schedule built for the end | | | | and 75% of |
| items into | | | | their R&D budget to these projects.According to |
| time-phased net requirements for the | | | | Gartner research group, the rapid evolution of |
| sub-assemblies, | | | | ERP has already lead to a new corporate |
| components and raw materials planning and | | | | must-have, ERP II, |
| procurement.In the 1980's the concept of MRP-II | | | | which is supposed to help businesses gain more |
| (Manufacturing Resources | | | | competitive |
| Planning) evolved which was an extension of MRP | | | | edge in the future. The major difference is that |
| to shop | | | | ERP II |
| floor and Distribution management activities. In | | | | involves collaborative commerce, which enables |
| the early | | | | business |
| 1990's, MRP-II was further extended to cover | | | | partners from multiple companies to exchange |
| areas like | | | | information |
| Engineering, Finance, Human Resources, Projects | | | | posted on eCommerce exchanges.In the next |
| Management | | | | tutorial we will talk about popular ERP Products |
| etc i.e. the complete gamut of activities within | | | | and the Modules and Application related to |
| any | | | | them.For more visualization of this article along |
| business enterprise. Hence, the term ERP | | | | with the screen shots and more visit with step by |
| (Enterprise | | | | step instructions, is a community of developers |
| Resource Planning) was coined.Why is it | | | | specializing in C, C++, C#, Java, J2EE, .NET, |
| Necessary?By becoming the integrated | | | | PeopleSoft, SAP, Siebel, Oracle Apps., Data |
| information solution across the | | | | warehousing, Oracle/SQL Server/DB2 and |
| entire organization, ERP systems allow companies | | | | Testing. |
| to better | | | | |