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Understanding ERP Systems: A Comprehensive Overview

This overview by Michael Walton provides insights into Enterprise Resource Planning (ERP) systems, which manage both internal and external business resources. Key components of ERP systems include financials, human resources, and supply chain management. Developed from MRP II (Manufacturing Resource Planning), ERP systems have evolved to support various business functions. The discussion covers the historical adoption of ERP systems, challenges faced by businesses, and prominent ERP software distributors, including SAP, Oracle, and Microsoft Dynamics.

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Understanding ERP Systems: A Comprehensive Overview

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  1. Enterprise Resource Planning (ERP) A brief overview By Michael Walton 10/21/2010

  2. What is an ERP system? • An ERP system is a system used for the management of both external and internal sources of a business • Some departments include but are not limited to • Tangible assets • Human resources • Materials • Financial resources

  3. Requirements to be considered an ERP system • Real time operation without the need for batch updating • Outlying applications should access a central database (removing data redundancy) • Full user side system access without further integration needed

  4. Components of the software • Core components • Financials • Distribution • Human Resources • Product Lifecycle Management • Additional Components • CRM software • Supplier management • Purchasing • Distribution • Manufacturing • Warehouse management

  5. Where ERP came from • ERP is considered by most to be an offshoot of MRP II (Manufacturing Resource Planning) • MRP II consisted of all business functions for a manufacturing company • ERP systems were developed as a direct offshoot of MRP II and included service oriented and retail companies as well as the functional parts of MRP II • Term was coined in 1990 by the Gartner group

  6. ERP system growth • ERP systems were slow to be adopted until the 1990’s • Reasons included • High costs to make the switch • Prior legacy systems (MRP II, MRP) already in place • Around the year 2000 many companies adopted the ERP system

  7. Top 5 ERP software distributors • SAP • Oracle Applications • The Sage Group • Infor Global solutions(formerly SSA global technologies) • Microsoft Dynamics

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