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  • The Development of Enterprise Resource Planning Systems

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    Neha Sharma
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    ERP

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    81 views9 pages

    The Development of Enterprise Resource Planning Systems

    Uploaded by

    Neha Sharma

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 9

    ERP

    The Development of Enterprise Resource


    Planning Systems
    The Evolution of Information Systems
     ERP system was not feasible until the 1990’s
     Evolved as a result of
     Development of hardware and software
    technology needed to support the system
     Computers have gotten smaller and faster
     Moore’s Law
     Performance doubled with each new generation of
    computers
     Every 18-24 months the # of transistors on a
    computer chip doubled
     Proliferation of personal productivity software
    The Evolution of Information Systems
     Development of a vision of integrated
    information systems
     As PC’s gained popularity, managers became
    aware that important business information was
    being stored on individual PC/s, but there was no
    easy way to share the information electronically.
     Servers became more powerful and less
    expensive and provided scalability
     Possible to view ERP systems as an
    extension of MRP II (Manufacturing Resource
    Planning)
    ERP Software Emerges
     SAP
     Formed in 1972 by five former IBM systems analysts
     Systemanalyse und Programmentwicklung
     Systems Analysis and Program Development

     R/3
     Released in 1992
     Designed using an open-architecture
     Allows all business areas to access the same
    database, eliminating redundant data and
    communication s lags
    The Significance and Benefits of ERP
    Software and Systems
     Allows easier global integration
     Barriers of currency exchange rates, language
    and culture can be bridged automatically
     Eliminates updating and repairing many
    separate computer systems
     Allows management to manage operations,
    not just monitor them
     Makes the organization more responsive when
    change is required
    Questions About ERP
     How Much Does an ERP Package Cost?
     Large company might spend from $50 million
    to $500 million
     Midsize company might spend $10 million to
    $20 million
     Cost includes several factors
     ERP software
     New Hardware
     Consultants’ and analysts’ fees
     Time for implementaiton
     Training
    What return can be expected from an
    ERP investment?
     Savings in operations expense
     One study indicated that 33% of companies
    say costs savings in sales order management,
    and 34% of companies said their ERP
    systems significantly reduced their personnel
    needs
     More sales can be generated every month
     Competitive advantage
     Save personnel, suppliers, distributors, and
    customers much frustration
    Why do some companies have more
    success with ERP than do other?
     Some executives hope that new software will
    cure fundamental business problems that
    aren’t curable by any software
     Some executives and IT managers don’t take
    enough time for a proper analysis during the
    planning and implementation phase
     Some executives and IT managers skimp on
    employee education and training
    The Continuing Evolution of ERP
     The Internet has forced ERP companies to
    rethink how users get and use their ERP
    software

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