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Enterprise Resource Planning

Autor:   •  April 14, 2011  •  Essay  •  672 Words (3 Pages)  •  1,726 Views

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ERP (Enterprise Resource Planning) is one of the main business systems that has been implemented widely across a lot of in organizations and industries. It is not just a software, it is both software and organization strategies that use the ERP system. ERP system has helped in integration in many deferent fields such as resource planning, operational control, and management control. ERP system has a variety of modules that improve the activities and process within an organization such as productivity, human resource and financial planning.

ERP system was first created in the 1970s by a German software industry (SAP) and then other it was expanded widely after it proved its flexibly and productivity. Also other vendors rushed in the industry to enter the competition and started to make their own modules such as People Soft, Oracle, BAAN and JDEdwards. Those later vendors made provided variety of solutions and have been developing themselves ever since.

It's true that economy challenges made a lot of organizations to reduce overall IT spending; however, a lot of organizations still invest in ERP systems because of its ability to reduce the costs, improve the response time and to make it easier for customers to deal with business processes. ERP systems have helped a lot in business operations and these systems have showed how important to be implemented in the organizations because it helps to lower the costs, improve the supply chain management, shorten cycle times and to reduce the inventories. ERP system is very important to organization computing processes, as it has a huge affects in gaining benefits such as technological, strategic, organizational and financial benefits. To sum it up, implementing an ERP system can be very effective and helpful for the organization in computing and data integration if it's implemented in the right way. Although ERP systems cost to a lot to implement, organizations can still gain benefits in the long run. Also organizations should consider what kind of an ERP system

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