Introduction to ERP Systems

Introduction
ERP stands for Enterprise Resource Planning. In enterprise Resourse Planning . The
coordinated management of large business processes, often in real time and
mediated by software applications, is enterprise resource planning.

Introduction
The use of the preparation of enterprise capital Increasingly, program has
been more prominent in much of today's Companies. In several
companies, it is introduced in attempts to raise market performance. The
notion of industry , it is possible to operationalize success as the entity's
financial profits, Improvements in service for the abstract gains or
operational gains for the Association.
The rationale for this choice is that the financial advantages have been
before, it was studied several times and does not make a direct
contribution to the effects of in particular, the ERP method. The cause of
the inadequacy may be It can shown that the financial advantages are
quantitatively measured; but still, a qualitative approach based on
operational and intangible gains can be made possible through the direct
link is best illustrated between the ERP system and the organization
business. (Velcu, 2007).

Importance of ERP
 The importance of this system lies within the
wide-spread ERP structures. There are certainly several cases of loss
ERP's effect on company.
 To explore the relationship further, between adoption of ERP and
organization this will include success with a relationship conceptual
framework.
 The Information Technology between utilization and organization
results then certain uses of IT principles to the more basic ERP
variable.

ERP in Organizations
 Large businesses are very difficult and one unified information system
no longer meet their customer needs.
 Projects incorporating the ERP framework have distinct stages that
need to be considered while discussing the advantages accomplished
by businesses implementing ERP.
 A vital aspect of a good enterprise today is computer systems.
 In business of providing is divided into three levels: Tactical, Medium
and Organizational.
 To make efficient an organizations it is very smart step to move on
the ERP technical systems by which the businesses get improve.

Body of Presentation
In the body of Presentation we have to discuss the following points:
 Why Organizations Invest in ERP?
 ERP Framework
 ERP Projects
 ERP Implementation Issues
 ERP Project Failure

Now it has to be noticed that why the organizations tends to move in ERP
systems given the different aspects and the different alternatives for
information integration in a business.
 The answer for this question implies between the technical gains for
example, Replacing legacy systems, or for business reasons.
 Improving operational performance and efficiency (Nicolaou, 2004).
 The replacement of the legacy systems was very important for the
boom of ERP during the late 1990s when companies wanted to replace
their legacy systems during the year 2000 with a more Y2K compliant
solution so they have invested into ERP systems (Anderson et al.,
2003).
Why Firms Invest in ERP?

ERP Projects
 Normally, ERP schemes are applied as venture projects incorporating ERP.
 The collection of the ERP vendor normally involves Company Process
Establishment, Reengineering, execution and Assessment of the method
adopted. (Wei, 2008).
 Usually, ERP implementation ventures External IT & company employees
interested both external and from the adopting company consultants
from partners in deployment for the sake of being successful.
 This illustrates how intensive ERP programs for Human Capital Are.

ERP Implementation Issues
 There are different utilization issues that face business that decides to
go forward and implement ERP. ERP requires a big portion of time,
personnel, and capital (Laukkanen et al., 2007).
 Most of this cost is not associated with the ERP software package itself
but with its implementation, including customizations, configurations,
and consultation services to implement it (Hitt et al., 2002).
 The time that is required to set an ERP system is at an average of 21
months.

ERP Project Failure
 Most of the implementation failures for ERP were early ERP adoptions
which did not have strong business justifications (Gupta et al., 2004).
 This was credited to the misalignment of goals from the implementation
of the ERP and from the strategic priorities of company and IT.
 If there is such a misalignment, it may trigger the company losing the
gains of ERP programs.
 On the other hand, investing into ERP systems without any objective
other than following the market or industry trend might also cause an
ERP project to fail (Kang et al., 2008).

Conclusion
 The gains in quality using IT was addressed and "The "paradox of
efficiency," made famous it was in the 1980s and 1990s, Outlined. The
famous measurements of company outcomes have been demonstrated.
The correlation between the adoption of ERP and company perks have
also been checked.
 It was discovered that some financial and organizational it is necessary
to do and calculate benefits; Nevertheless, there is still controversy
about the precise details of the ERP's impact on results at the stage of
level of finance and operations.

Cont…
 Various factors that shape this relationship between company efficiency
and ERP processes. This were discussed, such as the variables of the ERP
deployment and ERP process Issues.
 To explore the impact in order between ERP and company results the
Case study which identifies the advantages, Achieved after the ERP
scheme was introduced in an Egyptian business was introduced.
 THE Business has been reported as having implemented the ERP system
effectively. Results revealed that there are multiple advantages it was
completed after ERP adoption.

 What is the impact of the ERP System on the Banking Sector.
 Are an ERP is better for the small Firms or organizations.

References
• Gupta, O., Priyadarshini, K., Massoud, S. & Agrawal, S. K.(2004). “Enterprise Resource
Planning: A Case of a Blood Bank,” Industrial Management & Data Systems, 104 (7), 589-603.
• Velcu, O. (2007). “Exploring the Effects Of ERP Systems on Organizational Performance:
Evidence from Finnish Companies,” Industrial Management & Data Systems, 107 (9), 1316-
1334.
• Wei, C.-C. (2008). “Evaluating the Performance of an ERP System Based on The Knowledge
of ERP Implementation Objectives,” The International Journal of Advanced Manufacturing
Technology (39), 168-181.
• Nicolaou, A. (2004). “Firm Performance Effects in Relation to the Implementation and Use of
Enterprise Resource Planning Systems,” Journal of Information Systems, 18 (2), 79-105.
• Kang, S., Park, J.-H. & Yang, H.-D. (2008). “ERP Alignment for Positive Business
Performance: Evidence From Korea's ERP Market,” Journal of Computer Information
Systems, Summer 2008, 25-38 .

References
• Laukkanen, S., Sarpola, S. & Hallikainen, P. (2007). “Enterprise Size
Matters: Objectives and Constraints of ERP Adoption,” Journal of
Enterprise Information Management, 20 (3), 319-334.
• Anderson, M., C., Banker, R., D. & Ravindran, S. (2003). “The New
Productivity Paradox,” Communications of the ACM, 46 (3), 91-94.
• Hitt, L. M., Wu, D., J. & Zhou, X. (2002) “Investment in Enterprise
Resource Planning: Business Impact and Productivity Measures,” Journal
of Management Information Systems, 19 (1), 71-98.

Introduction to ERP Systems

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