Sunday, December 27, 2009

ERP Essay

Essay on ERP

What is an ERP?
ERP stands for Enterprise Resource Planning. ERP is a system of business management that integrates all resources of a business, including planning, manufacturing, sales, and marketing.

How do such systems differ from older, traditional business information systems?
Older, more traditional information systems assess each resource individually and on separate basis. For example, marketing would be investigated separately and not combined with any other resource such as sales. Looking at marketing and sales together would help a company to see what methods increase and decrease sales. Rather, the older systems might judge each individually and not realize that they may be related. The traditional methods would not show how one resource affects another, or how to combine resources for maximum profit. The newer ERP systems help to combine all of the company’s assets into one by seeing how they are related and can work towards one goal. The newer systems also help to come up with the best way(s) for the company to grow and make decisions.

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Who are the suppliers of ERP software?
ERP software suppliers would be those companies that are in software development. They would help to create a system that would best fit the needs of the business and help to organize its operating system, as well as support its business processes.

Why are the companies investing millions of dollars implementing ERP software?
Companies are investing money in implementing ERP software to integrate their businesses. Many companies want to be nationally known, if not internationally recognized. ERP software also helps to organize the company or business so that it has necessary information on hand through networking for whoever may need it at any time with easier access. Networking helps to stay organized and up-to-date on what is happening throughout the company so that one department is aware of another departments need or progress, and vice versa. This is critical for the growing companies, or companies that intend to broaden their products and/or services.

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