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