Posted by Administrator on September 29, 2006 under ERP Software | 
Natalie Aranda
Information technology has transformed the way we live and the way we do business. ERP, or Enterprise Resource Planning, is one of most widely implemented business software systems in a wide variety of industries and organizations. In this short article, well try to concisely explain the basic yet important concepts relevant to ERP.
What is ERP – ERP is the acronym of Enterprise Resource Planning. ERP definition refers to both ERP software and business strategies that implement ERP systems. ERP implementation utilizes various ERP software applications to improve the performance of organizations for 1) resource planning, 2) management control and 3) operational control. ERP software consists of multiple software modules that integrates activities across functional departments – from product planning, parts purchasing, inventory control, product distribution, to order tracking. Most ERP software systems include application modules to support common business activities – finance, accounting and human resources.
ERP Systems – ERP is much more than a piece of computer software. A ERP System includes ERP Software, Business Processes, Users and Hardware that run the ERP software. An ERP system is more than the sum of its parts or components. Those components interact together to achieve a common goal – streamline and improve organizations business processes.
History of ERP – The history of ERP has been more than 20 years. Enterprise Resource Planning (ERP) is the evolution of Manufacturing Requirements Planning (MRP) II in 1980s, while MRP is the evolution of Inventory Management & Control conceived in 1960s. ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes. In terms of technology, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.
Benefits of ERP – ERP software attempts to integrate business processes across departments onto a single enterprise-wide information system. The major ERP benefits are improved coordination across functional departments and increased efficiencies of doing business. The implementation of ERP systems help facilitate day-to-day management as well. ERP software systems is originally and ambitiously designed to support resource planning portion of strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and lack of adequate integration of ERP with Decision Support Systems (DSS).
ERP Failures – We couldnt conclude our brief guide to ERP without mentioning ERP failures. The failure of multi-million dollar ERP projects are reported once in a while even after 20 years of ERP implementation. We have identified the four components of an ERP System – 1) ERP software, 2) Business Processes that ERP software supports, 3) Users of ERP systems, and 4) Hardware and Operating Systems that run ERP applications. The failures in one or more of those four components could cause the failure of an ERP project.
Natalie Aranda writes about business and information technology.
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Posted by Administrator on September 26, 2006 under ERP Software |
The following discusses the ways often used in selecting systems. Actually, one area not expanded upon is the combination of an RFI/RFP combined with a Scripted Demonstration process.  Using the RFI to narrow the field and the Scripted business process to show the stakeholders how the system will function for them.
Sam Lowe’s blog on Enterprise Architecture & IT Strategy: Are Most Enterprise Technology Selection Exercises Flawed?
Are Most Enterprise Technology Selection Exercises Flawed?
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Posted by Administrator on under ERP Software |
Stumbling around the web, we came across a great ERP reference site. This site is the US Army’s ERP/SOA Resource Center. Its own description is as follows:
As the Army embarks on transforming its warfighting capabilities, it is imperarive that the Business Capabilities / Enablers / Processes transform to support the warfighter. ERP systems provide an integrated suite of Information Techonology applications that support the end-to-end business operations of an entire organization. The ERP Resource Center is designed to provide Enterprise Process Owners, Program Executive Officers, Program Managers, and others involved in the Business Transformation of the Army with detailed information, supporting documents, and tools and techniques regarding the use of ERP systems.
This site is filled with useful information. It is not helpful if you are a small company looking for an ERP system other than to guide you in an overview of what ERP is and does. There is a glossary online there too, but it is government focused. If however you are implementing a Tier 1 package, then this gives a lot of good information.
We especially liked the “Bolt On” section that discusses Business Intellegence, CRM, and PLM. They even have the Gartner Magic Quadrants to show you (as of 2005) who plays where.
Be sure to check it out at http://www.army.mil/ESCC/erp/index.htm
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Posted by Administrator on September 25, 2006 under ERP Software |
Do you take best of breed or do you find a single source? The question of whether to implement multiple solutions that fit the specific niche areas of your business or to implement a single platform, single database solution of a modern ERP system.
There is an interesting article that debunks the myths of going best of breed. Taken with an accounting slant, this article does point out some of the key considerations an IT manager must make when considering whether to implement specialized solutions or to roll out a single ERP system:
Revenue and Receivables Management: Myths and Truths About ERP
By Sanjay Srivastava
Six myths about ERP debunked
Enterprise resource planning ERP technology has a proven history of delivering value to todays corporations by enabling a centralized information warehouse to be leveraged enterprise-wide. However, ERP has a broad focus, and best-of-breed BoB applications have been developed to provide the depth of functionality required by key functional areas, such as accounts receivable. As a result, corporations have long recognized the need for best-of-breed applications to bridge fill the void of ERPs functional limitations.
With ERPs broad focus, it is easy to believe that it can provide a single solution to all of your corporations challenges. However, it is important to know where the lines of reality and myth collide. There is no doubt that ERP plays a very crucial role in todays enterprise, but as with any technology, naturally there are functional limitations. It is crucial to understand what these limitations are.
Read the Article here…
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Posted by Administrator on September 23, 2006 under ERP Software |
Today, the Web is influencing many things. One key element of life is communication. People are no longer meeting at cafe’s but rather they are meeting on MySpace. The web is also collecting a vast database of information. One of the key points is Wikipedia. According to Wikipedia, Wikipedia is a Web-based free-content multilingual encyclopedia project. It exists as a wiki, a website that allows any visitor to freely edit its content. ”
Now that technology is finding its way into corporations and is weaving itself into ERP. The following article examines this new trend.
Enterprise Knowledge The Wiki Way
By Michael Hickins
NEW YORK — Web 2.0 is finding its way into the enterprise by way of a Wiki.
Wikis (define), collaborative Web sites on which all members of a community can contribute and post, have become commonplace on the consumer Web. Read the Article here…
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