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ERP Analysis

By Exforsys | on December 21, 2006 |
ERP Tutorials

ERP Analysis

Enterprise Resource Planning could be described as a number of tools that are used to integrated the various processes of a company or organization. Almost all ERP solutions will utilized interconnected databases, and it has become one of the most popular information systems available on the market today.

A number of studies have shown that nearly 70 percent of Fortune 1000 companies will use an ERP system, and even small to medium sized businesses have begun using them. Statistics indicate that the ERP market has grown to $50 billion since the end of the 1990s. Some of the most prominent companies in the ERP industry are PeopleSoft, Oracle, and SAP.

There are a large number of potential uses for this technology. Enterprise Resource Planning is comprised of a number of activities that support module program software. This software is responsible in assisting companies in the process of managing a number of different operations within their organization. An example of some of these operations would be finance of manufacturing. Companies that specialize in selling ERP systems are trying to combine more modules in their merchandise so that they can help their clients better integrate their processes. Some of the systems which are being combined with this technology are data warehousing tools and sales automation.

Since the Internet has become an important tool for businesses around the world, ERP vendoirs are working harder to offer technologies that fully utilize the capabilities of the Internet. Combining the Internet with ERP tools will allow companies to use their products in a mobile manner, and mobile computing will become much more advanced. There are three primary modules that make up an important part of Enterprise Resource Planning, and these three modules are logistics, accounting, and human resources. These modules are important because they will allow companies to become more proficient in the areas of production and order processing.

However, ERP is much more powerful than this. It is a number of processes that are connected to numerous modules. It can allow a company or organization to become better organized. The reason for this is because ERP promotes integration rather than compartmentalization. The type of database that is commonly used with these systems is the relational database. Overall, ERP could be described as being a single form of data. The users will gain access to the database in order to gain important information that is related to human resources or financing. A number of people have described ERP as being the new generation of MRP. However, the capabilities of this technology extend beyond anything that was ever conceived with MRP.

MRP, also known as Materials Resource Planning, is a technology that allows users to schedule processes to occur at a specific time in one location. Enterprise Resource Planning, on the other hand, is a technology that can be implemented on an international scale. While MRP is limited in how it can be used, ERP is not. Unlike MRP, ERP can work seamlessly with either the Internet or a company Intranet. Most ERP systems will use a server that is based on Unix, while some also use Windows. It is also possible for users to install ERP on a mainframe system. In a nutshell, Enterprise Resource Planning could be seen as a form of reengineering.

This technology is responsible for combining consultants, software, and hardware into one unified whole. In this context the word "hardware" is used to refer to the computer. More specifically, it could also refer to a server.

The consultants are the individuals who are responsible for the implementation of the software, and it is also their responsibility to make sure the employees are properly trained on how to use it. When the ERP software is sold to the company, it will usually be sold in a generic form. The functions will be the most important part of it. Most companies will need to modify the software so that it can be useful. A number of studies have indicated that ERP makes up over 50% of all IT budgets for companies and organizations.

In addition to Fortune 1000 companies, a number of smaller firms are also taking advantage of this technology. To compete successfully, a number of ERP vendors have focusing on tailoring their services toward small to medium sized businesses.

« « Enterprise Resource Planning Solutions
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Editorial Team at Exforsys is a team of IT Consulting and Training team led by Chandra Vennapoosa.

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