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Eliminates the need for external interfaces previously
required between system.

Combined the data of formerly separate

applications ± greater reporting capabilities.

Facilitates standardization and lower maintenance.

 


 

 

 
 
 
1960¶s - Systems Just for Inventory Control

1970¶s - MRP ± Material Requirement Planning

(Inventory with material planning & procurement)

1980¶s - MRP II ± Manufacturing Resources Planning

(Extended MRP to shop floor & distribution Mgnt.)

Mid 1990¶s - ERP ± Enterprise Resource Planning

(Covering all the activities of an Enterprise)

2000 onwards ± ERP II ± Collaborative Commerce

(Extending ERP to external business entities)





°o implement ERP systems, companies often seek
the help of an ERP vendor or of third-party
consulting companies.

°hese firms typically provide three areas of

professional services:
± consulting
± customization
± support
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Consulting involves three levels:
Systems architecture
designs the overall dataflow for the enterprise including
the future dataflow plan.
Business process consulting
studies an organization's current business processes and
matches them to the corresponding processes in the ERP
system, thus 'configuring' the ERP system to the
organization's needs.
°echnical consulting.
It involves programming. Most ERP vendors allow
modification of their software to suit the business needs of
their customer.
 & 
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Customization is the process of extending or

changing how the system works by writing new user
interfaces and underlying application code. Such
customizations typically reflect local work practices
that are not currently in the core routines of the ERP
system software.
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Ônce your system has been implemented, the

consulting company will typically enter into a
Support Agreement to assist your staff to keep the
ERP software running in an optimal way.
  



Readymade solutions for most of the Problems.

Integration of all functions ensured.
Easy enterprise wide information sharing.
Suppliers and Customers communication can be on-
line.
Automatic adaptation to new technology.
 "  



Success depends on the skill and experience of the

workforce, including training
Customization of the ERP software is limited. °his
may involve changing of the ERP software structure.
ERP systems can be very expensive to install
Systems are too restrictive and do not allow much
flexibility in implementation and usage.
 +Ô

] Ôption 1 ± MAKE [Using Internal resources]
Developing a custom-built ERP package, specific to the
requirements of the organization, with the help of the in-
house I° department

] Ôption 2 ± BUY
Going for °ailor-made ERP packages available in the
market like SAP, Ôracle applications, Baan,
PeopleSoft etc

] Ôption 3 ± MAKE [using External resources]

Developing a custom-built ERP package, specific to the
requirements of the organization, with the help of a
software solution provider.
 
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] Customer Satisfaction
] Business Development - new areas, products, services
] Ability to face competition
] Efficient processes required to push the company to top
gear
à

] Present Software does not meet business needs
] egacy systems difficult to maintain
] Ôbsolete hardware/software difficult to maintain
 (

In Short ERP is

³Software solution that addresses the Enterprise

needs, taking a process view of the overall
organization to meet the goals, by tightly
integrating all functions and under a common
software platform´
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