Full Extensive Tech Brief on ERP
What is it?ERP is an acronym that stands for Enterprise Resource Planning. Enterprise resource planning is "the integrated management of core business processes, often in real-time and mediated by software and technology"( ). In simpler terms thet are the systems or solutions that help manage, monitor and manintain the day to day business activities. The activitiessthat an ERP can manage include: Product planning, Marketing, Sales, Inventory, Accounting and many more. ERP's allow a seamless flow of multiple business systems and factors. They enable the flow of a business or organizations data, collecting organizingcompany software can prove to be an intricate part of any business organizational structure. ERP has grown to become a multi-million dollar element of business and overall industry. Early ERP systems focused heavily on large corporations but the industry has seen many innovations such as improvements in cloud ERP's to customized small ERP systems. ERP solutions are vital and are here to stay. Their role in everyday business activity continues to expand as technologies imporve.
HistoryTrue ERP's began to gain attention and recognition in the 1990's. Before ERPs gained the rep of being able to change an organizations functionality and effciency overnight, there were elements that led to its birth. First came Inventory Control Packages's in the 1960's, followed by Material Requirements Planning (MRP) in the 1970s. By the 1980's the business process had evolved into Manufacturing Resources Planning (MRP II), and this form of structural planing led to the very basic forms of ERP seen in the 1990s. The Garter group was the first organization to use the acroynm ERP. ERP was initially and "extention of the functions of MRP II and computer integrated manufacturing" ( ). Although early ERP systems were based around manufacturing, as time passes ERP systems that were focused around other cores such as accounting and HR are created. Later in this same decade ERP system that focus on all the different business cores are developed.
TypesThere are various types of ERP software's depending on what an organization is in need of, in terms of organization and functionality. ERP systems can actually get so specific that a list of ERP systems with different functionalities would be incredibly long. I will be highlighting the general types of ERPs.
Most Recent Trends and TechnologoesERP software has continued to grow and be used in more and more areas of business. What started as a large scale software type has grown to be highly scalable, efficiently running software type.The real of Enterprise resource planning is one of heavy change and fad follwoing. Typically new uses for ERP pop up in the industry regularly. Today one of the hottest emerging forms of ERP is Mobile ERP. Some ERP solutions now give users the capability to access their system on mobile devices including iOS, Andriod and Windows phones. While the ERP application is availible, it is really only a watered down version of a fully fledged ERP. Nonetheless it would allow a user to keep track of the key elements of their day to day operations. This newform of ERP provides tremendus convenience which heightend productivy.
Basic UsesWhile ERP can be a very complex topic to learn or speak about, the simplest thing to explain would be the basic uses for ERP. ERP is enterprise software. What that means specifically is, that it was developed in order to work hand and hand with big business. The easiest way to highlight uses of ERP is in example form.In most business there are elements that need to be monitored, analyed and maintained. For example if a company relies heavily on distribution and shipping an ERP could handle the functionality of organizing and optimizing an inventory system. The same could be said for a heavy retail business. Simply put ERP has many uses but its uses revolve around the different facets of businesses.
Market Share and Popularity
Popularity RankingNumerous studies performed by Panorama Concultiing have provided a credible ranking of different ERP systems in 2017. Their research and ranking was based on five key criteria: Market share, Time to implement, Cost to implement, Tome to realize benefits and Functional scoring. The ranking are as follows: Popularity Rankings are as follows:
Outlook on the FutureERP technologies are expanding and evolving every single day. There are always more and more applications being found for ERP. At this point in time the applications for ERPs seem boundless, but looking forward there are industry trends the seem like they will be guiding ERP in a particular direction. Moving forward, Could ERP is what is gaining large popularity and praise. SaaS or Software as a service seems to be the future of ERP. Software as a service is a model of licensing where software is licensed to businesses on a yearly or monththly subscription basis. In term of ERP, various companies who develop their own ERP systems would then package it up and provide it as condensed version, still containing most elements of a traditional system and roll that out to businesses on a licening model.
Possible ThreatsERP is a system or software type that is very unique. It was a system that was created to help manage so many diffferent functionalities and elements that there isnt a system like it. While there were manu different types of ERP there is not a type of system out there that is threatening the market share ERP holds. AS of right now the value an ERP adds to a business is not being challenged by any type of system. From what is apparent ERP systems are crushing it, and no curent technologies pose a true threat.
Best ChoiceAfter taking in all this infromation on ERP history, present situation an future advancements I was able to draw a conclusion on which ERP could be held as best. After comparing many solutions such as Oracle and JD Edwards and many more the choice was clear. I believe that SAP is the best ERP on the market for three reasons. The first being longevity, the second is market share, and the final peice is return on investment. There are plenty of ERP solutions out there making a lot of buss about thier forward thinkin, and innovation. While SAP hasn't completely jumpson the new generation of ERP bandwagon just yet, it is the long history of functionality and dependability that keeps them at number one. SAP has been in the ERP game for over four decades and in that time they have builta reputation as an industry giant. Even is they aren'tconsidered cutting edge, they are the safeest bet for entrants and the sefest bet never loses. Along with their longevity in the market SAP also dominates in terms of market share. Again SAPis falling behind in terms of marketing flashy solutions but that hasn't seemed to hurt their market share too much. They are not losing much ground to their competitors and it is safe to assume that when they do embrace new innovation they will fo on to dominate even more. Lastly the factor that puts SAP over the top would be their systems overall return on investment. According to the study cunducted by Panorama Consulting, SAP ranks first in time it takes to realize benefits. SAP HANA took an average of 8.5 months to create consistent improvement. That figure is considerably better than competitors. The other statistic that makes this fact even more impressive is the fact that SAP's implementation costs were the second lowest in the study. If you take lower implementation cost, and a short period to realize improvement, a good argument can be made for SAP