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  • Evolution of Enterprise Resource Planning Systems

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    Vidya Venkatesan
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    Enterprise Resource Planning (ERP) systems have evolved from early reorder point systems and material requirements planning (MRP) in the 1960s-1970s to fully integrated ERP systems today. ERP systems provide an enterprise-wide transaction framework that links key business functions like sales, inventory, production, distribution, and finance. Common ERP challenges include integrating business processes and data across departments, consolidating and managing data, ensuring consistency and accuracy of data, limiting external system interactions, and managing the underlying IT systems. An example of ERP benefits is Colgate-Palmolive, which saw on-time delivery improve from 97.5% to 91.5% and working capital reduced from 6.3% to 11.

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    Enterprise Resource Planning (ERP) systems have evolved from early reorder point systems and material requirements planning (MRP) in the 1960s-1970s to fully integrated ERP systems today. ERP systems provide an enterprise-wide transaction framework that links key business functions like sales, inventory, production, distribution, and finance. Common ERP challenges include integrating business processes and data across departments, consolidating and managing data, ensuring consistency and accuracy of data, limiting external system interactions, and managing the underlying IT systems. An example of ERP benefits is Colgate-Palmolive, which saw on-time delivery improve from 97.5% to 91.5% and working capital reduced from 6.3% to 11.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    17 views6 pages

    Evolution of Enterprise Resource Planning Systems

    Uploaded by

    Vidya Venkatesan
    Enterprise Resource Planning (ERP) systems have evolved from early reorder point systems and material requirements planning (MRP) in the 1960s-1970s to fully integrated ERP systems today. ERP systems provide an enterprise-wide transaction framework that links key business functions like sales, inventory, production, distribution, and finance. Common ERP challenges include integrating business processes and data across departments, consolidating and managing data, ensuring consistency and accuracy of data, limiting external system interactions, and managing the underlying IT systems. An example of ERP benefits is Colgate-Palmolive, which saw on-time delivery improve from 97.5% to 91.5% and working capital reduced from 6.3% to 11.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Enterprise Resource Planning

    Evolution of ERP
    1960- early computers, reorder point systems

    and early material requirements planning(MRP) 1970- MRP and computer hardware and software developments 1980- MRP II 1990- MRP II and early ERP systems 2000s- software vendors consolidation

    Technological backbone of e-business, an

    enterprise wise transaction framework with links into 1. sales order processing 2. Inventory management and control 3. production and distribution planning 4. finance

    Common IS issues
    Process and data integration Data consolidation & management

    reporting Consistency & accuracy Few external interactions IT management

    Example : Colgate - Palmolive


    BEFORE
    Acquire an order Processing 1-5 days 1-2 days Order acquisition and processing combined take 4 hours 97.5% 6.3%

    AFTER

    On time delivery Working capital

    91.5% 11.3%

    ERP usage in the organization


    Employee Role Decision Appropriate IS

    Executive

    Strategic management

    Long term

    Tactical

    Planning & control Supervisory

    Short- medium term Day-to-day

    Executive support/ information systems Decision support/ management support Transactional processing

    Operational

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