Enterprise Resource Planning Overview

ERP (Enterprise Resource Planning) Overviewunderstand their business. With ERP software,
covers What iscompanies can
ERP, Brief history of ERP, Why is it necessary,standardize business processes and more easily
Marketenact best
Leaders and the future of ERP.What ispractices. By creating more efficient processes,
ERP?Enterprise Resource Planning or ERP is ancompanies
industry term forcan concentrate their efforts on serving their
integrated, multi-module application softwarecustomers and
packages thatmaximizing profit.Market LeadersThe top five
are designed to serve and support multipleERP vendors, SAP, Oracle Corporation,
businessPeoplesoft, Inc. (now Oracle Corp.), JD Edwards
functions. An ERP system can include software& Company,
forand Baan International, account for 64 percent of
manufacturing, order entry, accounts receivabletotal ERP
and payable,market revenue. These vendors continue to play
general ledger, purchasing, warehousing,a major role
transportation andin shaping the landscape of new target markets,
human resources. Evolving out of thewith
manufacturing industry,expanded product functionality, and higher
ERP implies the use of packaged software ratherpenetration
thanrates. SAP dominates the $6.7 billion ERP
proprietary software written by or for oneapplications
customer. ERPmarket in Europe with 39% market share. Oracle
modules may be able to interface with anand
organization's ownPeopleSoft come second and third respectively,
software with varying degrees of effort, and,followed by
depending onSAGE Group and Microsoft Business
the software, ERP modules may be alterable viaSolutions.The Future of ERPIndustry analysts
the vendor'sexpect that every major manufacturing
proprietary tools as well as proprietary orcompany will buy the software, which ranges in
standardcost -- with
programming languages.Brief History of ERPThemaintenance and training -- from hundreds of
focus of manufacturing systems in the 1960'sthousands of
was ondollars for a small company to millions for a large
Inventory control. Most of the softwarecompany.
packages thenAMR Research of Boston says consolidation
(usually customized) were designed to handleamong the major
inventory basedplayers will continue and intensify. ERP vendors
on traditional inventory concepts. In the 1970'sare
the focusexpected to put more effort into e-commerce,
shifted to MRP (Material Requirement Planning)CRM and SCM
systems thatinitiatives, with leaders redirecting between 50%
translated the Master Schedule built for the endand 75% of
items intotheir R&D budget to these projects.According to
time-phased net requirements for theGartner research group, the rapid evolution of
sub-assemblies,ERP has already lead to a new corporate
components and raw materials planning andmust-have, ERP II,
procurement.In the 1980's the concept of MRP-IIwhich is supposed to help businesses gain more
(Manufacturing Resourcescompetitive
Planning) evolved which was an extension of MRPedge in the future. The major difference is that
to shopERP II
floor and Distribution management activities. Ininvolves collaborative commerce, which enables
the earlybusiness
1990's, MRP-II was further extended to coverpartners from multiple companies to exchange
areas likeinformation
Engineering, Finance, Human Resources, Projectsposted on eCommerce exchanges.In the next
Managementtutorial we will talk about popular ERP Products
etc i.e. the complete gamut of activities withinand the Modules and Application related to
anythem.For more visualization of this article along
business enterprise. Hence, the term ERPwith the screen shots and more visit with step by
(Enterprisestep instructions, is a community of developers
Resource Planning) was coined.Why is itspecializing in C, C++, C#, Java, J2EE, .NET,
Necessary?By becoming the integratedPeopleSoft, SAP, Siebel, Oracle Apps., Data
information solution across thewarehousing, Oracle/SQL Server/DB2 and
entire organization, ERP systems allow companiesTesting.
to better