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    Evolution of Enterprise System and Its Benefits

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    Rahul Sharma
    Enterprise resource planning (ERP) systems integrate business processes across functional areas like manufacturing, distribution, accounting, and human resources. ERP systems first emerged in the late 1980s and early 1990s to provide enterprise-wide coordination and integration based on earlier inventory control and materials requirements planning technologies. During the 1990s, ERP vendors added additional modules for functions like supply chain management and customer relationship management. While ERP systems can improve organizational functions, the benefits depend on how well the system fits the organization's needs and how effectively it is configured and tailored to the business culture and strategies. Potential benefits include improved backbone functions, front-end functions, and intangible strategic advantages, though organizations must overcome challenges to fully realize these benefits.

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    Evolution of Enterprise System and Its Benefits

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    Rahul Sharma
    44 views3 pages
    Enterprise resource planning (ERP) systems integrate business processes across functional areas like manufacturing, distribution, accounting, and human resources. ERP systems first emerged in the late 1980s and early 1990s to provide enterprise-wide coordination and integration based on earlier inventory control and materials requirements planning technologies. During the 1990s, ERP vendors added additional modules for functions like supply chain management and customer relationship management. While ERP systems can improve organizational functions, the benefits depend on how well the system fits the organization's needs and how effectively it is configured and tailored to the business culture and strategies. Potential benefits include improved backbone functions, front-end functions, and intangible strategic advantages, though organizations must overcome challenges to fully realize these benefits.

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    ERP

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    Enterprise resource planning (ERP) systems integrate business processes across functional areas like manufacturing, distribution, accounting, and human resources. ERP systems first emerged in the late 1980s and early 1990s to provide enterprise-wide coordination and integration based on earlier inventory control and materials requirements planning technologies. During the 1990s, ERP vendors added additional modules for functions like supply chain management and customer relationship management. While ERP systems can improve organizational functions, the benefits depend on how well the system fits the organization's needs and how effectively it is configured and tailored to the business culture and strategies. Potential benefits include improved backbone functions, front-end functions, and intangible strategic advantages, though organizations must overcome challenges to fully realize these benefits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views3 pages

    Evolution of Enterprise System and Its Benefits

    Uploaded by

    Rahul Sharma
    Enterprise resource planning (ERP) systems integrate business processes across functional areas like manufacturing, distribution, accounting, and human resources. ERP systems first emerged in the late 1980s and early 1990s to provide enterprise-wide coordination and integration based on earlier inventory control and materials requirements planning technologies. During the 1990s, ERP vendors added additional modules for functions like supply chain management and customer relationship management. While ERP systems can improve organizational functions, the benefits depend on how well the system fits the organization's needs and how effectively it is configured and tailored to the business culture and strategies. Potential benefits include improved backbone functions, front-end functions, and intangible strategic advantages, though organizations must overcome challenges to fully realize these benefits.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Evolution of Enterprise System and its Benefits:

    Introduction:
    Enterprise resource planning systems or enterprise systems are software
    systems for business management, encompassing modules supporting
    functional areas such as planning, manufacturing, sales, marketing,
    distribution, accounting, financial, human resource management, project
    management, inventory management, service and maintenance,
    transportation and e-business.
    “ERP systems are configurable information systems packages that
    integrate information and information- based processes within and
    across functional areas in an organization” (Kumar & Van Hillsgersberg,
    2000). “ERP systems are computer-based systems designed to process
    an organization’s transactions and facilitate integrated and real-time
    planning, production, and customer response”
    The concept of the ERP system can be illustrated, following Davenport
    (1998), with the diagram below.
    1960s most organizations designed, developed and implemented
    centralized computing systems, mostly automating their inventory
    control systems using inventory control packages (IC).
ERP systems
    first appeared in the late 1980s and the beginning of the 1990s with the
    power of enterprise-wide inter-functional coordination and integration.
    Based on the technological foundations of MRP and MRP II, ERP
    systems integrate business processes including manufacturing,
    distribution, accounting, financial, human resource management, project
    management, inventory management, service and maintenance, and
    transportation, providing accessibility, visibility and consistency across
    the enterprise.
During the 1990s ERP vendors added more modules
    and functions as “add-ons” to the core modules giving birth to the
    “extended ERPs.” These ERP extensions include advanced planning and
    scheduling (APS), e- business solutions such as customer relationship
    management (CRM) and supply chain management (SCM).
    ERP SYSTEMS AND ORGANIZATIONS
    It is generally a misleading perception that implementing an ERP system
    will improve organizations’ functionalities overnight. The high
    expectation of achieving all-round cost savings and service
    improvements is very much dependent on how good the chosen ERP
    system fits to the organizational functionalities and how well the
    tailoring and configuration process of the system matched with the
    business culture, strategy and structure of the organization. Overall an
    ERP system is expected to improve both backbone and front-end
    functions simultaneously. Organizations choose and deploy ERP
    systems for many tangible and intangible benefits and strategic reasons.
    In many cases the calculation of return on investment (ROI) is weighted
    against the many intangible and strategic benefits. The benefits that an
    industry standard ERP system may bring to organizations are shown in
    Table 1. To reap the benefits of ERP systems, however, organizations
    need to overcome certain problems and disadvantages,

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