Oracle Apps 11i: ERP (Enterprise Resource Planning) Overview
Sanjay Kumar
This article is just about what is ERP which we have done......hope
will help ...
Regards,
Sanjay
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Oracle Apps 11i: ERP (Enterprise Resource Planning) Overview
ERP (Enterprise Resource Planning) Overview covers What is ERP, Brief
history of ERP, Why is it necessary, Market
Leaders and the future of ERP.
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What is ERP?
Enterprise Resource Planning or ERP is an industry term for integrated,
multi-module application software packages that
are designed to serve and support multiple business functions. An ERP
system can include software for manufacturing,
order entry, accounts receivable and payable, general ledger,
purchasing, warehousing, transportation and human
resources. Evolving out of the manufacturing industry, ERP implies the
use of packaged software rather than proprietary
software written by or for one customer. ERP modules may be able to
interface with an organization's own software with
varying degrees of effort, and, depending on the software, ERP modules
may be alterable via the vendor's proprietary
tools as well as proprietary or standard programming languages.
Brief History of ERP
The focus of manufacturing systems in the 1960's was on Inventory
control. Most of the software packages then (usually
customized) were designed to handle inventory based on traditional
inventory concepts. In the 1970's the focus shifted to
MRP (Material Requirement Planning) systems that translated the Master
Schedule built for the end items into timephased
net requirements for the sub-assemblies, components and raw materials
planning and procurement.
In the 1980's the concept of MRP-II (Manufacturing Resources Planning)
evolved which was an extension of MRP to
shop floor and Distribution management activities. In the early 1990's,
MRP-II was further extended to cover areas like
Engineering, Finance, Human Resources, Projects Management etc i.e. the
complete gamut of activities within any
business enterprise. Hence, the term ERP (Enterprise Resource Planning)
was coined.
Why is it Necessary?
By becoming the integrated information solution across the entire
organization, ERP systems allow companies to better
understand their business. With ERP software, companies can standardize
business processes and more easily enact
best practices. By creating more efficient processes, companies can
concentrate their efforts on serving their customers
and maximizing profit.
Market Leaders
The top five ERP vendors, SAP, Oracle Corporation, Peoplesoft, Inc.
(now Oracle Corp.), JD Edwards & Company, and
Baan International, account for 64 percent of total ERP market revenue.
These vendors continue to play a major role in
shaping the landscape of new target markets, with expanded product
functionality, and higher penetration rates. SAP
dominates the $6.7 billion ERP applications market in Europe with 39%
market share. Oracle and PeopleSoft come
second and third respectively, followed by SAGE Group and Microsoft
Business Solutions.
The Future of ERP
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Industry analysts expect that every major manufacturing company will
buy the software, which ranges in cost -- with
maintenance and training -- from hundreds of thousands of dollars for a
small company to millions for a large company.
AMR Research of Boston says consolidation among the major players will
continue and intensify. ERP vendors are
expected to put more effort into e-commerce, CRM and SCM initiatives,
with leaders redirecting between 50% and 75%
of their R&D budget to these projects.
According to Gartner research group, the rapid evolution of ERP has
already lead to a new corporate must-have, ERP II,
which is supposed to help businesses gain more competitive edge in the
future. The major difference is that ERP II
involves collaborative commerce, which enables business partners from
multiple companies to exchange information
posted on eCommerce exchanges.