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Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP). A brief overview By Michael Walton 10/21/2010. What is an ERP system?. An ERP system is a system used for the management of both external and internal sources of a business Some departments include but are not limited to Tangible assets Human resources

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Enterprise Resource Planning (ERP)

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  1. Enterprise Resource Planning (ERP) A brief overview By Michael Walton 10/21/2010

  2. What is an ERP system? • An ERP system is a system used for the management of both external and internal sources of a business • Some departments include but are not limited to • Tangible assets • Human resources • Materials • Financial resources

  3. Requirements to be considered an ERP system • Real time operation without the need for batch updating • Outlying applications should access a central database (removing data redundancy) • Full user side system access without further integration needed

  4. Components of the software • Core components • Financials • Distribution • Human Resources • Product Lifecycle Management • Additional Components • CRM software • Supplier management • Purchasing • Distribution • Manufacturing • Warehouse management

  5. Where ERP came from • ERP is considered by most to be an offshoot of MRP II (Manufacturing Resource Planning) • MRP II consisted of all business functions for a manufacturing company • ERP systems were developed as a direct offshoot of MRP II and included service oriented and retail companies as well as the functional parts of MRP II • Term was coined in 1990 by the Gartner group

  6. ERP system growth • ERP systems were slow to be adopted until the 1990’s • Reasons included • High costs to make the switch • Prior legacy systems (MRP II, MRP) already in place • Around the year 2000 many companies adopted the ERP system

  7. Top 5 ERP software distributors • SAP • Oracle Applications • The Sage Group • Infor Global solutions(formerly SSA global technologies) • Microsoft Dynamics

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