Definition - ERP
ERP stands for enterprise resource planning.
ERP is integration of all the core processes needed
to run a company: finance, HR, manufacturing,
supply chain, services, procurement, and others,
into a single system.
They use the latest technologies – such as machine
learning and artificial intelligence (AI) – to
provide intelligence, visibility, and efficiency
across every aspect of a business.
3.
Enterprise Resource Planning
Enterprise resource planning (ERP) manages day-to-day business
activities such as accounting, procurement, project management, risk
management and compliance, and supply chain operations.
A complete ERP suite also includes enterprise performance
management, software that helps plan, budget, predict, and report on
an organization’s financial results.
ERP systems tie together a multitude of business processes and enable
the flow of data between them.
Shared transactional data from multiple sources helps ERP systems
eliminate data duplication and provide data integrity with a single
source of truth.
Today, ERP systems are critical for managing thousands of businesses
of all sizes and in all industries, ERP is as indispensable as the
electricity that keeps the lights on.
4.
ERP Concepts
ERPsystems are designed around a single, defined data
structure (schema) that typically has a common
database.
helps ensure that the information used across the
enterprise is normalized and based on common
definitions and user experiences.
core constructs are interconnected with business
processes driven by workflows across business
departments , connecting systems and the people who
use them.
ERP is the vehicle for integrating people, processes, and
technologies across a modern enterprise
5.
ERP Concepts
ERPmakes it easier to collect, organize, analyze, and
distribute this information to every individual and
system that needs it to best fulfill their role and
responsibility.
ERP also ensures that data fields and attributes roll up
to the correct account in the company’s general ledger
so that all costs are properly tracked and represented.
A key ERP principle is the central collection of data
for wide distribution.
can create, store, and use the same data derived
through common processes.
6.
ERP Concepts
Witha secure and centralized data repository,
everyone in the organization can be confident
that data is correct, up-to-date, and complete.
Data integrity is assured for every task
performed throughout the organization.
ERP systems bring order to chaos systems.
7.
Benefits of ERP(SAP)
1. Higher productivity: Streamline and automate your core business
processes to help everyone in your organization do more with fewer
resources.
2. Deeper insights: Eliminate information silos, gain a single source of
truth, and get fast answers to mission-critical business questions.
3. Accelerated reporting: Fast-track business and financial reporting and
easily share results. Act on insights and improve performance in real
time.
4. Lower risk: Maximize business visibility and control, ensure compliance
with regulatory requirements, and predict and prevent risk.
5. Simpler IT: By using integrated ERP applications that share a database,
you can simplify IT and give everyone an easier way to work.
6. Improved agility: With efficient operations and ready access to real-time
data, you can quickly identify and react to new opportunities.
8.
Business Value ofERP(Oracle)
1. Improved business insight from real-time information generated by
reports
2. Lower operational costs through streamlined business processes
and best practices
3. Enhanced collaboration from users sharing data
in contracts, requisitions, and purchase orders
4. Improved efficiency through a common user experience across many
business functions and well-defined business processes
5. Consistent infrastructure from the back office to the front office, with
all business activities having the same look and feel
6. Higher user-adoption rates from a common user experience and design
7. Reduced risk through improved data integrity and financial controls
8. Lower management and operational costs through uniform and
integrated systems
9.
Evolution of ERP
Priorto
1960s
• Pre Material Requirement Planning (MRP) stage
1970s
• Material Requirement Planning (MRP)
1980s
• Manufacturing Resources Planning II (MRP- II)
1990s
• Enterprise Resource Planning (ERP)
2000
• Extended ERP (E-ERP)