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What is ERP? - Enterprise Resource Planning is defined as an integrated, configurable information system that coordinates and manages the resources, information, and functions of a business across departmental boundaries.
Integration: ERP systems unify various business processes and data flows.
Configurability: They can be customized to fit specific organizational needs.
Cross-functional: ERP spans multiple departments and business functions.
Information management: It centralizes data collection, storage, and analysis.
This paper, titled "What is ERP?", provides a comprehensive overview of Enterprise Resource Planning (ERP) systems from an academic information systems perspective.
The paper aims to clarify the concept of ERP, which has gained prominence in practice but has been somewhat neglected in academic research.
It explores the historical evolution of ERP from its roots in Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) systems.
The paper discusses the appropriateness of the term "ERP", noting that it may not accurately reflect the current scope and functionality of these systems.
Key characteristics of ERP systems are identified, including cross-functional integration, configurability, and best practice process models.
The authors highlight the challenges in defining ERP and the need for more research and academic attention in this area.
Future developments in ERP are discussed, including integration with e-business, web interfaces, and componentization.
The paper concludes by acknowledging limitations of the study and suggesting directions for future research.
Overall, this paper provides a thorough examination of ERP from multiple perspectives, aiming to increase understanding of the concept within the academic information systems community and highlight areas for further research and discussion.
The term "ERP" was first used by Gartner Group in the 1990s.
It expanded on earlier concepts like Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRP II).
ERP systems evolved to include functions beyond manufacturing, integrating various business processes.
By the mid-1990s, ERP systems covered all core enterprise functions and were adopted by diverse organizations, including governments and non-profits.
Various methodologies exist for selecting an ERP system, such as Kuiper's funnel method and the Clarkston Potomac methodology.
By Shing Hin Yeung - File:ERP_Modules.png, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=141742154
Sales
Handles order placement, scheduling, shipping, and invoicing.
Procurement (SRM)
Maximizes cost savings in procurement and logistics processes.
Production (PLM)
Aids in planning and optimizing manufacturing capacity and material resources.
Distribution (SCM)
Controls warehouse processes and manages supply and demand changes.
Accounting
Automates financial operations, ensures compliance, and provides real-time performance insights.
Human Resource
Maintains employee databases for optimal utilization.
Corporate Performance and Governance
Streamlines and controls corporate services.
Enterprise Asset Management
Manages asset lifecycles efficiently and sustainably.
Customer Services (CRM)
Manages customer relationships and experiences.
Business Intelligence
Analyzes data and converts it to information.
e-Commerce
Focuses on external strategies.
Cloud ERP (Enterprise Resource Planning) systems are software solutions that integrate various business processes, such as finance, HR, supply chain, and more, into a single platform hosted on the cloud. This allows for real-time data access, scalability, and reduced IT overhead.
SAP's S/4HANA Cloud is a leading ERP solution designed for large enterprises. It offers robust capabilities across industries with a focus on automation, AI-driven insights, and integration with other SAP services.
Microsoft Dynamics 365 is a flexible, cloud-based ERP that integrates with other Microsoft products like Office 365 and Azure. It's well-suited for businesses looking for an adaptable and user-friendly solution.
While IBM doesn't offer a traditional ERP solution, it partners with other ERP providers, such as SAP and Oracle, to deliver cloud infrastructure and services that enhance ERP implementations.
Oracle ERP Cloud is a comprehensive suite of applications for finance, project management, procurement, and more. It's known for its strong analytical capabilities and integration with Oracle's other cloud services.
Odoo is an open-source ERP that caters to small and medium-sized businesses. It offers a modular approach, allowing companies to choose and customize the specific applications they need.
Claudiu Dangulea is a Junior SAP Consultant based in Vienna, Austria, with a background in process management and business intelligence. Currently pursuing a Master of Science in ERP Consulting at the Technikum Wien Academy, Claudiu has experience in data literacy, and the implementation of SAP FI/CO modules. His academic journey includes studies in Wirtschaftsinformatik at the University of Linz and participation in quantum technologies summer schools. Claudiu is passionate about artificial intelligence, particularly its ethical implications, and is an advocate for sustainable business models and technologies. Connect with him on LinkedIn or explore his work on Linktree – https://linktr.ee/cdiu.