Hi all !
Our first class (Aug. 31, 2006) covered the basics of ERP.
The underlying factor behind ERP is the Integration of various independent processes/systems within an organization. For e.g Independent process like Manufacturing, Supply chain, CRM, Human Resources can be run as modules in an ERP. It helps the information flow across various departments in a organization. The combination of indenpendent systems, provides a single database thereby eliminating problems like data redundancy and time lag between information interchange. It also provides a single and standard interface to various departments which is easy to maintain (low cost). Other benifits of implementing ERP would include improved communication, high products quality and cutomer satifaction.
With so many advantages and benifits to the organization, ERP comes with its own set of disadvantages. Major issues with ERP are high cost of implementation, time to implement, computer security, and complexity of the new system.
An interesting and equally surprising fact about ERP system is that "consulting" sums to approximately 30% of the total cost of the system, where as the software costs only 15%. Hardware, implementation and training account to 55%. (source: Introduction to ERP by Dr. Vijay)
ERP can be implemented by taking different modules from different vendors. This is sometimes the best way to develop an ERP system but might come for a price.
Our first class (Aug. 31, 2006) covered the basics of ERP.
The underlying factor behind ERP is the Integration of various independent processes/systems within an organization. For e.g Independent process like Manufacturing, Supply chain, CRM, Human Resources can be run as modules in an ERP. It helps the information flow across various departments in a organization. The combination of indenpendent systems, provides a single database thereby eliminating problems like data redundancy and time lag between information interchange. It also provides a single and standard interface to various departments which is easy to maintain (low cost). Other benifits of implementing ERP would include improved communication, high products quality and cutomer satifaction.
With so many advantages and benifits to the organization, ERP comes with its own set of disadvantages. Major issues with ERP are high cost of implementation, time to implement, computer security, and complexity of the new system.
An interesting and equally surprising fact about ERP system is that "consulting" sums to approximately 30% of the total cost of the system, where as the software costs only 15%. Hardware, implementation and training account to 55%. (source: Introduction to ERP by Dr. Vijay)
ERP can be implemented by taking different modules from different vendors. This is sometimes the best way to develop an ERP system but might come for a price.
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