ERP


What is ERP?
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ERP stands for Enterprise Resource planning, it is integrated all functions in one system. Organization will have no of departments in organization. ERP integrate all the functions into one system. It will facilitate free flow of data among the departments.


Main ERP Software’s are
SAP
Oracle Applications
Baan (Infor Global Solutions)
Microsoft Dynamic
JD Edwards

Lawson Software

Sage Group

SAP stands for System Application and Products in data Processing

Five former IBM employees start a company they call SAP Systemanalyse 
und Programmentwicklung ("System Analysis and Program Development").


        v SAP was released in 1972  Head quarters is in Germany  by      
             Wellenreuther, Hopp, Hector, Plattner and Tschira.
        v Renamed in 1977

History of SAP
v 1972 - SAP R/1 – Real time data processing
v 1980 -SAP – R/2 Included no. of countries and no. of currencies
v 1990 – SAP R/3- R/3 stands for Data Structure
                    1.Application Server
                    2.Data based server
                    3.Presentation
      v 1999 – My SAP.com – Web based
              My SAP ERP is the comprehensive enterprise resource planning (ERP)    
              solution from SAP. It has been designed to meet today`s changing demands 
              on ERP.
      v 2004 – Net weaver – Integrates information, people and process.
              SAP Net Weaver offers a full suite of enabling software technologies 
              including functionality for portal infrastructure, business warehousing,   
              exchange integration, Web application server, mobile technologies and 
              more.



Accounting
    Treasury (TR)


                 Payroll (PY)  



Advantages and Disadvantages of ERP:


Advantages
v Allows easier global integration (barriers of currency exchange rates, language, and culture can be bridged automatically)

v Updates only need to be done once to be implemented company-wide

v Provides real-time information, reducing the possibility of redundancy errors

v May create a more efficient work environment for employees

v Vendors have past knowledge and expertise on how to best build and implement a system

Disadvantages

v Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high

v Inflexibility - vendor packages may not fit a company's business model well and customization can be expensive

v Return on Investment may take too long to be profitable

v Implementations have a risk of project failure

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