2 ERP Basics and Types of ERP Softwares

What is an ERP – Enterprise Resource Planning
An ERP stands for Enterprise Resource Planning, it is a business software systems that support
entire business or enterprise throughout the project life cycle in organizing, planning,
maintaining, tracking and utilization of resources (Man, Machine, Material and Money)
effectively.
Let discuss briefly about what is an ERP software and how it helps in business achievements.
History of ERP systems

Why do we need ERP software
ERP Advantages and Disadvantages
Common ERP modules
Why ERP
Top ERP Vendors List
ERP Software Packages
What is ERP – Enterprise Resource Planning
ERP stands for Enterprise Resource Planning. It is a gateway to integrating the data and
processes of an entire organization into a single system with all modules that supports the core
business areas.
ERP systems cover all basic functions of an organization

Enterprise Resource Planning is developing into a Multi-Module Application Software Package
that enables business processes across the supply chain management.
Allows to integration all the operational units such as financing, human resources,
manufacturing, sales, marketing, finance & accounting, procurement, inventory management and
so on.
ERP software system allows the business to achieve real-time business process, increase
productivity, improve delivery, reduce cost and increase profits, increase product
quality,improve information and performance management.
In Simple terms, we can explain an ERP as : –
ERP is a business suite with number of applications that are integrated together between system
and assist a organization in collecting, managing and reporting information on real time
throughout the business process.
History of ERP Systems

ERP System have took years to emerge and is still evolving. These systems are transformation
and ever-changing.
In 1970’s manufacturing chain was the center of business operations. This led to the
development of MRP systems.
The second phase of ERP development occurred in 1980’s which focused more on quality
measures which led to the evolution of MRP II Systems.
In the 1990’s, Enterprise Resource Planning started using multi-module application to increase
organizations process. ERP Systems integrates with all the modules of organization’s business
modules and this led to the evolution of ERP System.
Why do we need ERP Software
ERP is an integrated systems of different business process for e.g. if a company has different
departments like sales department, production department, material management, finance
department, etc, so in ERP we have an integration of all the departments and they all use
common database.
We can have standardization of systems across locations. For e.g. for MNC companies can have
different plants in different locations with standard systems.
ERP systems helps to have a better controlling over the different process.
An ERP is a integrated systems, it helps to provide the better reporting.
ERP Software components
ERP Advantages and Disadvantages

Advantages of Implementation of an ERP system :
Reduced redundancy in entering data

ERP system provides real-time information on all needs of the organization in a single
system.
It allows everyone to access the same source and share the same source of information
It allows access, updates instantly, and saves a lot of time.
Integration among different functional areas to ensure proper communication,
productivity, and efficiency
The Accounting for all of these tasks, tracking the Revenue, Cost, and Profit on a granular
level.
Allow standardization of business processes and enterprise information.
It is a single source of systems that can be used throughout the organization.
ERP software enables real-time information availability and reduction in inventory and
cycle times.
The benefits of ERP systems are customer satisfaction, better information, productivity,
increased quality and decreases in time to market, product cost, delivery time, and
inventory levels.
Disadvantages of ERP Systems:-
The disadvantages of ERP systems are as follows :-
Takes a lot of effort and time and requires a lot of training

Customization of the ERP software is limited, you may not allowed to design application as
per business requirements.
ERP systems can be very expensive to install.
ERP Systems centralize the data in one place and this can increase the risk of loss of
sensitive information in the event of a security violation.
The usage of ERP system can be difficult for users, so appropriate training is to required to
use the ERP software.
Read more for ERP Advantages and Disadvantages
Common ERP Software Modules

Sales Order (SO)
Purchase Order (PO)
Finance and Accounting
Manufacturing Resource Planning
Customer relationship management (CRM)
Human Resources
Procurement
Marketing
The important modules in ERP SAP Systems are as follows-
Manufacturing – A manufacturing company could use an ERP system to track and manage
virtually every operation in the organization. Requests for Proposal (RFP) and
corresponding quotes can be entered and assigned to any large database of customers.
Quotes can be changed to Sales orders upon receipt of purchase orders, with line items and
corresponding prices that represent goods to be delivered to a customer.
Why ERP
It is a single application integrated software program.

It is a single database system.
ERP systems allow to share the of information and communication more effectively.
It automates customer orders, order fulfillment, billing, shipping and tracking, and so on.
The difference between before ERP and After ERP systems shows, why ERP software is
important to implement for any business.
Before ERP
After ERP systems
Top ERP vendors in Manufacturing and Distribution Industry.
SAP Oracle Microsoft Infor Epicor IFS lawson

Others
Market Share 28% 15% 12% 7% 5% 2% 2% 29%
TOP ERP vendors in Transport, Communication, Energy and Sanitary service.
SAP Oracle Microsoft Infor Epicor IFS QAD

Others
Market Share 35% 23% 15% 4% 2% 1% 1% 19%
Top ERP Vendors in Service Sector.

SAP Oracle Microsoft Infor Epicor Netsuite
lawson Others
Market Share 30% 21% 15% 2% 3% 2% 2% 25%
Top ERP vendors in Retail Sector.
SAP Oracle Microsoft Infor QAD SAGE lawson

Others
Market Share 31% 22% 22% 2% 2% 2% 2% 17%
ERP Software Packages
Baan by Baan corporation.

Peoplesoft from oracle corporation
Oracle Application
JD Edwards from oracle
Navigen
SAP from SAP AG (With total 60% market share).

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What is an ERP – Enterprise Resource Planning

History of ERP systems

ERP systems cover all basic functions of an organization

History of ERP Systems

ERP Advantages and Disadvantages

Reduced redundancy in entering data

The disadvantages of ERP systems are as follows :-

Takes a lot of effort and time and requires a lot of training

Common ERP Software Modules

It is a single application integrated software program.

After ERP systems

Top ERP vendors in Manufacturing and Distribution Industry.

SAP Oracle Microsoft Infor Epicor IFS lawson

SAP Oracle Microsoft Infor Epicor IFS QAD

Top ERP Vendors in Service Sector.

Top ERP vendors in Retail Sector.

SAP Oracle Microsoft Infor QAD SAGE lawson

ERP Software Packages

Baan by Baan corporation.

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