ERPexpansion is enterprise Resource Planning,
Broadly speaking, ERP refers to automation, computerization and integration of
a company’s core business to help them
focus on effectiveness and simplified success.
Evolution :
The ERP systems evolution is
taking an unusual turn. For those that may remember, ERP applications were
originally introduced as mainframe and host-based monolithic applications in
the 1970's and 1980's. McCormack and Dodge and MSA (Management Sciences
America) were fierce competitors and between them owned the lions share of the
ERP software market. The two rivals ultimately merged to become Dun &
Bradstreet Software. Following the merger of the number one and number two
market share leaders, Dun & Bradstreet Software believed itself to be an
unstoppable ERP application titan, however, was soon thereafter completely
replaced by the introduction of client/server applications and later sold to
Geac for a marginal fee valued largely on existing customer software
maintenance contracts.
Starting in November 1992, the
client/server ERP applications began appearing from no-name or lesser name
software manufacturers such as Platinum Software, PeopleSoft, Oracle
Financials, Baan and SAP. These distributed software and GUI interfaced
applications grew at the expense of the mainframe ERP systems. Midrange systems
such as the AS/400 continued to survive, however, their growth days were
clearly over. The most notable of the client/server ERP players - SAP and
Oracle Financials - stand alone as today's ERP application market share
leaders. However, now they too are threatened by new technology paradigms from
software as a service (SaaS) competitors and open source software.
There
are two tyes of ERPs ..
Industry Specific ERP :- ERP systems
for large corporations are often built from the ground up to suit the
organization's specific and unique needs. For a small business like yours, an
off-the-shelf model will work fine. Most are grouped into three categories to
service manufacturing, finance or logistics based companies.
In this again we can classify into two types-
Horizontal ERP: Will fit ANY organization. Eg: SAP, Oracle
Apps.
Vertical ERP: is Industry SPECIFIC. Eg: DTR (Plastic Industry), and Axis:
Steel Industry
Web-Based ERP:- ERP programs tend to be complex, requiring
high-end computers to run them. However, instead of purchasing the software to
run on your computer in your office, many suppliers offer Software as a
Service, or SaaS. In this case, you pay a subscription to access the software
and your data over the internet. Because the program is running on a remote
server, you are free to access it from anywhere you have an Internet connection
The following are the various types of ERP Systems:
SAP R/3
SAP B1
LN (Baan)
Microsoft Dynamics NAV
Microsoft Dynamics AX
JD Edwards EnterpriseOne
Oracle e-Business Suite Financials
Oracle PeopleSoft Enterprise
Who are some major ERP software providers?
SAP AG, Oracle Corporation, Microsoft, Infor, Consona, Epicor, Siebel
There are many companies that implement ERP software produced by
SAP
Total cost of ERP OWENERSHIP(in millions of $) –Meta Group Survey
System
|
Medium
|
Average
|
Smallest
|
|
Baan
|
16.1
|
13.6
|
0.8
|
26.5
|
JD Edwards
|
3.9
|
5.7
|
0.8
|
21.6
|
Lawson
|
1.9
|
4.1
|
0.4
|
16.4
|
Oracle
|
5.4
|
11.2
|
1.4
|
42.8
|
SAP
|
13.9
|
52.2
|
0.8
|
308.2
|
SSA
|
1.7
|
7.6
|
0.7
|
29.6
|
Benefits of ERP:
One common system-less duplication, more efficient
Customer focus –better customer service
Open communications among business partners
Adherence to standard business practices
Good reporting capabilities
Support for multiple currencies ad langauages.
Disadvantages of ERP:
High cost
Forced change of processes
Very complex software
Lack of trained people
