Evolution of Enterprise Resource Planning

Evolution of ERP

1. Evolution of ERP MIS 302 E-Commerce & Digital Markets

2. Benefits of ERP (SAP) Higher productivity :  Streamline and automate your core business processes to help everyone in your organization do more with fewer resources. Deeper insights :  Eliminate information silos, gain a single source of truth, and get fast answers to mission-critical business questions. Accelerated reporting :  Fast-track business and financial reporting and easily share results. Act on insights and improve performance in real time. Lower risk :  Maximize business visibility and control, ensure compliance with regulatory requirements, and predict and prevent risk. Simpler IT :  By using integrated ERP applications that share a database, you can simplify IT and give everyone an easier way to work. Improved agility :  With efficient operations and ready access to real-time data, you can quickly identify and react to new opportunities.

3. Business Value of ERP (Oracle) Improved business insight  from real-time information generated by reports Lower operational costs  through streamlined business processes and best practices Enhanced collaboration  from users sharing data in contracts, requisitions, and purchase orders Improved efficiency  through a common user experience across many business functions and well-defined business processes Consistent infrastructure  from the back office to the front office, with all business activities having the same look and feel Higher user-adoption rates  from a common user experience and design Reduced risk  through improved data integrity and financial controls Lower management and operational costs  through uniform and integrated systems

4. Evolution of ERP

5. Pre Material Requirement Planning Stage Before 1960s, traditional ways of managing inventories to ensure smooth and efficient functioning of the organizations. It was based on “ Classical Inventory Management ” or “ Scientific Inventory Control Methods ” Popular among them was Economic Order Quantity Bill of Material (BOM) etc. These systems had very limited scope

6. Materials Requirement Planning MRP was the fundamental concept of production management and control in the mid-1970s, considered to be the first stage in evolution of ERP. Material Requirements Planning (MRP) concept was based on two principles . It relied on time-phased information in calculating orders . Efficient employment of the Bill-of-Material ( BoM ). they used IT for algorithmic calculations - focus was on efficiency.

7. Materials Requirement Planning transaction processing was still mostly manual The computer was mainly used to perform large sorting operations Gradually, more functionality was added , but the roles of various departments (Sales, Production, Purchasing , Finance , Quality, HRM, etc.) remained unchanged

8. Manufacturing Resources Planning II (MRP- II) A natural Evolution from 1 st Generation – MRP II addressed the entire manufacturing function and not just a single task within the manufacturing function integrated support of business processes became possible. This system provided information that is useful to all functional areas and encouraged cross-functional interactions.

9. Manufacturing Resources Planning II (MRP- II) combined decision support, transaction processing, and management information applications into an integrated system. advent of online processing database management system. The combination of online transaction processing and modern database management systems created business information systems . attention was paid to capacity planning and master scheduling in MRP II. From an IT -point of view, the issue is that standard software packages could be designed .

10. Enterprise Resource Planning (ERP) MRP-II packages rapidly expanded with functionality for new areas of manufacturing businesses, such as fixed assets management, shop floor scheduling and control, distribution, transportation, service, financial services , EDI, tracking and tracing, product data management, etc . Enterprise Resource Planning is foundation system for domestic and global operations, supporting most or all functional areas in their daily operations . ERP at its core is an effective way of centralizing information and workflow processes through data management .

11. Extended Enterprise Resource Planning (E-ERP)/ERP II Web enabled ERP E-ERP is advancement in the field of ERP involving the technology of Internet and World Wide Web To facilitate the functions of an organization around the web . strengthened the original ERP package by included capabilities like customer relationship management, knowledge management, workflow management and human resource management . It is a web friendly application and thus addresses the issue of multiple office locations.

12. Enterprise Resource Planning (ERP ) the need to support customer-driven manufacturing multi-site applications two-tier client-server (CS) architectures . open systems three-tier client-server architecture . fat client architecture thin client architecture enterprise modelling