ERP

is an enterprise-wide information system designed to coordinate all the

resources, information, activities needed to complete business processes such as;
order billing

fulfillment

Erp System Concepts

 Its a computer program that does not load any external module. Standalone programs were the only way to run a computer. Computers with very limited storage used standalone programs. Nowadays these programs are a nearly extinct species . Even the most basic processors these days have sufficient storage to allow the O.S overhead E.g. in the diskette era, apparently standalone utility programs were delivered with a basic version of DOS fitting onto the same diskette.[Computing terminology]

 These are large-scale application software packages. ES is a packaged enterprise application software systems. Types of enterprise systems - ERP - Enterprise planning & - Customer relationship management software. Although data warehousing or business intelligence systems are enterprise-wide packaged application S/W often sold by vendors Enterprise systems are built on software platforms, such as SAPs Net Weaver and Oracle's Fusion, and databases.

Computer-based systems designed to process an organizations transactions and facilitate integrated and real-time planning, production, and customer response -- OLeary 2000.

 For Management to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival

 Packaged software Integrate the majority of a businesss processes Process the majority of an organizations transactions Use a data warehouse Allow access to data in real time Integrate transaction processing and planning activities

Business integration and Improved Data Accuracy Planning and MIS Improved Efficiency and Productivity Establishment of Standardized Procedures Flexibility and technology

Business Intelligence CRM (Customer Relationship Management) Financial Management HCM (Human Capital Management) Manufacturing Operations SCM (Supply Chain Management)

ERP covers a wide range of business and typically it fulfills all the business demand. For customizing ERP completely, the users have to make some changes in the implemented service package. Here is a list of most of the services where ERP is vastly in use: Production Department Supply Chain Management Financials Projects Human Resources Customer Relationship Management Data Warehouse

mySAP example:

customer relationship management e-procurement enterprise portals Financials human resources mobile business Marketplace supply chain management

Four Main Functional Areas of Operation:

Marketing And Sales(M/S) Supply Chain Management(SCM) Accounting And Finance(A/F) Human Resources(HR)

Cont..

 Pre-implementation planning Package selection Quality, knowledge & experience of the consultants Caliber of the project manager Implementation team composition Top management support Funds and other resources Training and education Knowledge transfer from consultants to employees Use of the system

Three important components of ERP configuration:

Models - represent the world encompassed by the system such as organizational structure. Artifacts - an interface between an inner environment and an outer environment such as an invoice document, vendor List, Product List, etc. Processes - the activity and information flows necessary to accomplish a particular task (or set of tasks)

SAP & R/3

In 1992, SAP introduced R/3, a powerful client/server architecture product, which quickly gained dominant market share. SAP R/3 is an integrated suite of financial, manufacturing, distribution, logistics, quality control and human resources application systems and can address or facilitate changes in the business processes. Its architecture consists of three main layers of software: (1) SAP GUI, representing the presentation layer. (2) SAP application layer. (3) SAP database layer (Bancroft et al., 1998).
Contd..

People Soft: It was founded by David Duffield. It started for HR and Pay roll accounting & achieved considerable success. Even with companies that already were using SAP for accounting & production. Oracle: Began in 1977 as software development labarotories(SDL) It manages large volume of data & extract information quickly. In 1979 SDL became Relational Software Inc. In 1986 the Client server oracle relational database was released & 1988 oracle financials.

Contd..

SAP ERP: Here other companies allow all business areas to access the same database. The system allows data to be entered one & then used throughout the organization.
FINANCIAL ACCOUNTING

WORKFLOW

Quality Management
Production Planning Human Resources

Project System

Plant maintenance

Materials Sales& Distribution Management Asset Management

CONTROLLING(CO)

JD Edwards :
JD Edwards provides ERP applications (One World) for managing the enterprise and supply chain. Their integrated applications give customers control over their front office, manufacturing, logistics and distribution, human resources and finance processes. JD Edwards continues to allow its ERP solutions to operate in the computing environment and also to be XML enabled (Yen et al., 2002). One World is designed for between five and 500 users (OLeary, 2000).

Baan:
Baan was founded in The Netherlands in 1978. Bann has approximately 3,000 clients in 5,000 sites worldwide (OLeary, 2000). It sells manufacturing software to companies that are wary of SAP product. It stocks up on small software suppliers, which results in a wider variety of product offerings. They continue to develop enterprise applications in areas that SAP and Oracle are less competitive (Yen et al., 2002).

Element
Role
Domain Function

ERP
Internal enterprise optimization Manufacturing & distribution Manufacturing, sales, finance, HR Internal , hidden Web-aware , closed Internally generated & used

ERP II
Whole value chain participation All sectors/segments Cross-industry , industry sectors, & specify industry processes Externally connected to other stakeholders Web-based , open & component based Internally & externally published and used

Process
Architecture Data

ERP Package

Language Base

License

Other Info

Developer Country

A1 ERP

Java

Alliance Technologies Open License

ERP for Public Sector, Academia, Healthcare, Logistics A1 ERP Worldwide

ERPNEXT

Python, JavaScript, MySQL

GPL

ERP for small and medium

businesses

India

Fedena

Ruby, MySQL

Apache License

ERP for Schools/Universities

India

LedgerSMB

Perl, PostgreSQL

GPL

started as a fork of SQLLedger in 2006

Worldwide

OpenERP

Python, PostgreSQL

AGPLv3, OpenERP Public License

formerly Tiny ERP

Belgium, India, USA

Can run in the Amazon EC2 Opentaps Java AGPLv3 cloud. Based on Apache OFBiz 10.04 and Tomcat 6.0.26 Worldwide

Cloud ERP is an approach to enterprise resource planning (ERP) that makes use of cloud computing platforms and services to provide a business with more flexible business process transformation. Here internet is used to access hardware, software, and other resources that are provided on-demand in order to perform work and other business processes.It helps in reducing initial cost for setting up ERP . Benefits: Minimized initial investment. Unlike conventional onsite ERP solutions, a Cloud ERP solution does not require a substantial upfront investment. A typical onsite ERP implementation involves purchasing and maintaining servers, housing them securely, then deploying, configuring, and maintaining the software. In addition to a sizeable upfront capital outlay, this also requires the time, effort, and associated costs of hiring and maintaining a staff of 78 experienced IT personnel. Accelerate and Increase Return on Investment of the Application. In keeping with the business model of SaaS applications, Cloud ERP solutions can be implemented with relative ease and integrated faster into the organizations day-to-day business than their onsite ERP counterparts. In fact, most typical Cloud ERP solutions can be up and running in mere weeks, rather than months or even years, as may be the case with traditional onsite ERP software. This enables organizations to begin realizing the business benefits earlier, which, in turn, results in a more rapid payback, a greater return on investment (ROI), and a reduced total cost of ownership (TCO) over the course of the investment.

Automatic Software Upgrades. With traditional licensed ERP software, organizations typically must wait for the next release to benefit from the latest features, upgrades, or security patches. In addition, the cost, complexity, and potential disruption of moving to a new onsite software version often cause some organizations to defer upgrading to the newest release. Cloud ERP systems, however, eliminate this common problem Reduced Dependence on Internal IT Resources. Cloud ERP systems typically require significantly fewer technical resources to manage than onsite ERP solutions because the hosting provider manages the software, hardware, and network administration. This reduces the strain on the organizations IT department, allowing it to redeploy IT resources to focus on other, business-building tasks. Make Changes on Demand. Cloud ERP solutions are easily scalable and flexible to meet changing business requirements. Adding or removing users can be done on demand and will simply change the monthly subscription fee. This flexibility is particularly beneficial for growing, seasonal, or cyclical businesses that need to quickly change their user base to meet their unique business requirements. Flexibility and Scalability