Enterprise Resource Planning
Essay Preview: Enterprise Resource Planning
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Enterprise resource planning (ERP) describes a broad set of activities that help manufacturers and other companies manage key areas of their businesses, including product planning and development, inventory management, parts purchasing, accounts receivable and payable, order tracking, and customer service. Software applications by
leading vendors such as SAP and PeopleSoft have emerged to support these activities by providing a single interface to ERP data, often employing different modules for general aspects of the business to aid user in specific areas such as finance and engineering.
More than 60% of the Fortune 1000 have implemented Enterprise
(ERP) systems to streamline and automate business support processes. Properly
implemented, Enterprise (ERP) systems can help companies improve operational efficiency and achieve more consistent results. However, no ERP systems will payback the implementation investment unless the application and business processes are aligned.
Companies that have made the investment the structure of ERP software is oriented to application areas and functions, not business processes. Since ERP implementation is an IT project, a great deal of effort is focused on fixing misalignment between existing data repositories and the new applications. Much less attention has been paid to the critical need to align the application with the client companys business processes. As a result, work forces struggle to perform processes. Users find the systems inflexible and resist adopting the new standards. New “best practice” processes deliver performance that is often inferior to the legacy system. Breakthrough performance remains frustratingly out of reach.
ERP application users require other critical supporting content to complete their work. Finance tasks require customer statements and invoices. Logistics tasks require facilities drawings. Production planning tasks require engineering drawings and parts lists. Integrating this supporting content helps companies realize the maximum
benefit from an ERP investment.
Real-time access to accurate information makes employees faster and more efficient, ultimately resulting in improved business process efficiencies. The return on investment becomes apparent in your ability to streamline the supply