Basics ERP enterprise resource planning

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Basics ERP enterprise resource planning

enterprise resource planning (ERP) plays a crucial role in business, which requires people to have a general understanding of the main components of ERP to work well in any organization. The companies making the transition to computer technology at an increasing rate since the appearance of the desktop computer in the early 80's. We have always been working in the computer technology focus to increase productivity through information management. Since the introduction of the Internet and advances in networking and software technologies, and companies must implement some form of computer technology to automate common tasks such as word processing, accounting, and access to the Internet by employees, applications software developed that covers all or most of the enterprise business processes. These advanced applications software, generally known ERP, to take advantage of computer technology and enable companies to have detailed views on a wide range of business processes, allowing them to exchange information quickly between organizations, departments and staff in order to better management.

ERP is a term used loosely describes the software in the first place, but includes the hardware and software systems used by the institution for the collection, storage, retrieval and use of information flows through the organization. Planning term ERP, therefore, can apply to the microcomputer and one using accounting package (rapid wrote, for example) to keep track of sales, inventory, billing and accounting, and systems more complex institutions that automate business processes across the supply from the manufacturing and distribution chain, trade Resource Planning retail and services and, ultimately, customers, which may be either upstream or downstream in the supply chain. These are grouped functional capacity of the overall planning ERP software into categories known as supply chain management (SCM) and customer relationship management (CRM) and can be implemented in small, medium, or large companies using different hardware and software configurations. Complex ERP systems can be designed (hardware and software engineering) to serve large multinational companies using the Internet, internal networks and external in its business operations. Functions internal network such as the Internet; however, it is limited to the organization and its users and denies access to the public. External network, on the other hand, is a mechanism that allows authorized persons to access the parts of the organization's internal network (via the Internet) with a user name and password. For example, a manufacturer may allow traders to access external network to display product and pricing data, and confidential information is limited to authorized distributors only.

ERP is a very complex subject to understand better by looking at the key components of the ERP system including hardware, software, and areas of concern for business owners and managers. By looking at these key components from the viewpoint of conceptual, we can side step technical terms that allow for greater understanding of the purpose of the enterprise resource planning and its importance in business and the workplace.

Hardware

size of the organization dictates the hardware used in the ERP system type. For small companies, and it can be hardware component of the ERP system that microcomputer one or a few small computers are connected together via the local area network (LAN). In the case of a small LAN, one of the microcomputer as a server which is just a dedicated computer with the primary task of acting as a central data repository where data is stored. Custodian accept input data, processes these inputs and "serves up data" to other software applications or provides output in various forms including screen information, print output or other digital output types.

Usually, in major ERP environments, Foundation will use a dedicated server, which, in most cases, it is a small computer. Mini-computers have greater operating and storage capacity of computers and office can service many users at one time. Users to access the server either via dumb terminals (screen and keyboard) or smart terminal (microcomputer desktop completely) over the network server via local area network (LAN). How to put a server and (informational or current, known as legacy systems) associated with a new foundation for the hardware components of the system architecture. How do these systems are connected to the server, and to each other, form the topology (or planning) of the rules across the organization.

one of the major concerns facing many companies. Acquisitions and new computers, dimension twofold. On the one hand, it is very important to get the state of the art computer equipment that will not become obsolete quickly to changes in technology, while, on the other hand, in an attempt to connect legacy systems, in the ERP system. This is especially important if the old existing systems to implement many of the business processes, making the transition to ERP, systems integration, and more complex.

There are many related hardware configurations with technical issues, require more technical expertise (IT) professionals. Lists operators ERP system rarely deal with these technical issues, have little or no input regarding system configurations and rely on technical support staff to deal with technical issues, training and support.

In summary, the hardware component of the ERP system is similar to the skeletal system of the human body. It is a framework, or platform, which "rides" on the program and provides an interface for users to interact.

program

ERP software includes most of the business processes, according to the Ministry of Defense, project competence center solutions for the United States:

include activities supported by the planning systems of all basic functions of ERP of projects, including financial management, human resources management, and operations. Increasingly, vendors and institutions that provide "bolt-on" products that provide specialized functions essential to increase, such as the Advanced Planning and Scheduling Resource Planning (APS), and customer relationship management (CRM) (07).

design

ERP software approach uses a "best business practices", which helps to ensure data accuracy and integrity. For example, all the forces users of accounting software designed for the introduction of financial statements in accordance with the rules of generally accepted accounting practices standards (GAAP). This standard helps GAAP ensure that the financial statements and reports reflect the true financial situation of the institution. Accounting software accomplishes this congruence by controlling the introduction of financial information in the program. Similar types of the strict criteria used in the planning software matching institutions to industry standard business practices resources across the enterprise resource planning software, including bolt-on products. According to author Jim Welch:

companies can learn from the lessons of past applications. Many programs have focused heavily on the IT jobs at the expense of the commercial development process. As a result, it has been projected at risk or delay the benefits. On the contrary, the best performers ensured that operations, governance, and other non-technology issues were properly addressed (07).

one of the primary considerations of ERP software is whether the operations and business practices will comply with standards without radical amendment of the software enterprise resource planning software (best business practices). This can, and often do not, it means that the business will have to change business processes to comply with the program, instead of the other way around. This is practical for a number of reasons; First, the amendments to the programs can be cost prohibitive for small companies and, secondly, can amendments to the programs developed data integrity at risk, threatening the real purpose of ERP. In addition, the amendments to the program can make the software development, and even with the same vendors and application software (ERP2.0 ERP 2.1, for example), a very complicated and expensive.

One of the key considerations in the selection of ERP software system is to the success of business operations will enter in the best business practices of ERP software and integration possible with the present standards and future bolt-on programs. This is a complex issue also outside the scope of this document and requires careful analysis of individual software packages on the market in conjunction with senior management to work with IT consultants who represent sellers ERP software.

In short, the ERP software component is the heart of the business information and is not comparable to a system of arteries in the human body, and the flow of data through it, the lifeblood of the organization.

software vendors

major players in the enterprise, Oracle / PeopleSoft, SAP and ERP companies both software and highly respected in the ERP industry. While there are competitors, these two companies dominate the market with nearly $ 20 billion in combined annual revenue, with $ 10 billion in Oracle and SAP in the $ 9.7 billion in. This does not mean these software companies represent the best ERP solution for every job. In fact, one of the most important elements of owning ERP system is due diligence to find the correct application of business software, or according to Dustin Alexander shopping Global Solutions; "You can not invest a lot of time in the evaluation process" (07).

choose the software component (s) of the ERP system is one of the most important issues facing the business considering the implementation of ERP. Most companies do not have IT oversight and management of the entire acquisition process of the staff, which requires careful management scrutiny from many different angles to protect IT investments. Depending on the size and scope of the acquisition of ERP, business can expect to benefit from professionals from abroad to perform a variety of analyzes, including feasibility, business processes, and vendor performance / software. Implement the solution enterprise resource planning in the organization is deep science requires the best minds of business and information technology, and work together to help ensure the success of the project across a wide spectrum of issues. Among these functions and the effectiveness and usefulness and ease of issues with an eye on acquisition costs and the phased implementation, training, and the transition process, and continuous development that achieves the goals and objectives of the organization.

top business issues

There are many important issues facing the business considering the implementation of the enterprise resource planning and management must conduct due diligence in All stages of the process to protect against system failure. Successful projects start with a well-written plan details every step of the acquisition process in a way that people can understand so that the administration can project ownership and staff will use the system. Among these issues, negotiating contracts that cover hardware, software and software license agreements, modifications, upgrades, technical support, service and training and assistance to move people and processes. Moreover, a business must create a governance model to control all aspects of the implementation of ERP systems with a focus on the transmission of business processes that meet regulatory requirements and maintain a work assignment at the forefront.

conclusion

small and medium-sized and large companies are using computer technology to manage their business operations and streamline the flow of data in order to improve business management. For business applications can be as simple as using a quick books inventory management, billing and other financial operations, or very complex systems known as enterprise solutions. The systems can include enterprise resource departments or organizations and use a variety of hardware and software configurations to support and automate business operations planning. Among the most complex systems, and the use of small, servers, operating systems, computers, and support of application software on the Internet, intranet, extranet and local networks (LAN) and WAN (wide area networks) to communicate and exchange data between departments and organizations.

ERP is a complex subject, but understood that plays a big role and growth in the business sector and the government, which requires people to have a greater perspective on this technology and its application in the workplace. The three main components of the system institutions are the hardware and software and the people who run the ERP. The important thing to remember is that ERP is highly technical, and not one person has all the answers when it comes to the implementation of ERP systems. In order to ensure the success of the ERP implementation in the enterprise, and many qualified business and IT professionals must work together across a variety of disciplines to maximize the likelihood of a smooth transition to digital enterprise.

References

Alexander, D. (07, 26 SEP). "What is the plan to get the right ERP ERP the first time." Retrieved September 26, 07, from shop Global Solutions:

Walsh, J. Dmitry, Kordysh. (07). "Seven Keys to ERP success resources." Financial Strategy 0.89 (3), from 40 to 47.61. Retrieved September 26, 07, from ABI / INFORM Global database. (Document number: 1339921401).

unknown. (07.12 JUN). ERP Overview. Retrieved September 15, 07, of the projects and solutions competence center:

Copyright (c) 07 Jim Hart, All Rights Reserved

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