Enterprise Resource Planning Systems Essay Example | Topics and Well Written Essays - 2000 words

Enterprise Resource Planning Systems - Essay instanceAlthough ERP has been the cornerstone of the success stories of most companies from several years, there has not been a unified definition for the barrier ERP. The absence of a single definition is due to the intrinsic complexity of the motive behind ERP capital punishment. agree to the PC Magazine, ERP is a concept that aims at utilizing an integrated IT placement, which serves all departments within an enterprise (PC Magazine, 2007). The definition implies that an ERP system is not a custom software product, but a packaged software that a company cornerstone configure to interface with its own IT systems and tune processes (finance, logistics, HR, manufacturing etc). Some of todays leading ERP vendors are SAP, Oracle and Microsoft.Although its implementation has interpreted various forms, the essential concept of ERP has remained the same. Today ERP has become a worldwide industry standard shape for the broad set of activ ities supported by multi-module application software that helps a manufacturer or other traffic manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP can likewise include application modules for the finance and human resources aspects of a business (EC Council, 2002).ERP is a standaERP Customization The First Step to victorERP is a standard software package, and like any other standard software package aimed at automating an anonymous industry it must be tailored to the specific requirements of the business domain in which it is organism used. According to Gartner Group (1997), the scale of short letter address Re-Engineering and customization account for the maximum reasons for ERP implementation failures. Therefore customization of the ERP software is a primary and a critical step in ERP implementation. Two types of tailoring methods c an be applied to customize the ERP software to the specific business. Customize the ERP package to suit the business process.Business Process Re-Engineering Customizing the Business Process to suit the ERP package.In the first scenario, the company buys the off-shelf ERP package, and customizes the software based on the business rules and policies defined by the company. The second scenario is the one that is most comm provided applied. In this customization strategy, the company re-engineers its business processes to fulfill the vendors ERP logic. It is not essential that all the business processes of the company be re-engineered. The company performs BPR on only those business processes that are currently not in tandem with the philosophy of the ERP package. ERP implementation and BPR activities should be closely connected. ERP implementation should involve the analysis of current business processes and the chance of reengineering, rather than designing an application system that makes only the best of bad processes (Scheer & Habermann, 2000).Current ERP TechnologyMost current ERP software packages are based on 3-Tier Client Server Architecture. The 3 tiers of this architecture areUser Interface Contains the GUI that receives user input.Business Logic These are servers