Overview
To be successful in a competitive environment, organizations need to manage information effectively. The management needs accurate information at the right time for strategic planning and decision making. In addition, the various departments of an organization need to be integrated to enable them to share accurate and timely information.
Enterprise resource planning (ERP) helps integrate the working of the various business processes in an organization to ensure efficient management of information and facilitate decision making and strategic planning.
In this session, you will learn about:
- Identifying the need of ERP
- Identifying the evolution of ERP
Identify the need of ERP: The Era Before ERP Systems
In the era before ERP systems, organizations encountered several problems when handling their processes. Consider the case of ABC Inc., a leading manufacturer of plastic products. Established in 1977, ABC Inc. had several departments, such as Production, Purchase, Sales, Marketing, Human Resource, and Finance. Each department had its defined set of objectives and business processes.

To perform the business processes and achieve their objectives, the departments needed to efficiently manage their data. In the initial years, all data was manually stored and retrieved. This required a lot of paper work. Storage and retrieval of data was also cumbersome and time consuming. As a result, the productivity and profitability of the enterprise suffered.
During the 1980s, the management understood the benefits of Information Technology (IT) and acquired applications specifically designed for each department. As a result, intra-department processing became efficient. The management expected high returns on this investment in terms of increased productivity and efficiency in processes. This could mean a higher turnover and customer satisfaction for ABC Inc.

However, after one year, the management observed that the applications did not reap the expected benefits. The management conducted an open meeting with senior executives of each department to discuss the problem.
(Let us see what they discuss)
Problems with Individual Software Systems: ABC Inc.

Hr. Executive Says:

Sales Executive Says:

Marketing Executive Says:

Production Executive Says:

Finance Executive says:
Conclusion:
The committee concluded that the problems existed because each department was using a stand-alone application. To improve its efficiency, ABC Inc. needed to use an integrated information system for all departments.






SubashPosted Sep 15, 2016, 3:09 AM
Very nice article
Bhuvanesh MohankumarPosted Apr 30, 2016, 3:13 PM
Good one...
Vignesh ManiPosted Mar 14, 2016, 5:51 PM
nice
Shubham KumarPosted Mar 14, 2016, 5:45 AM
thnx to all
Mohammed IbrahimPosted Mar 14, 2016, 4:05 AM
nice
Debasis SahaPosted Mar 14, 2016, 12:48 AM
Nice share
Imtiyaz AnsariPosted Mar 13, 2016, 6:53 AM
A brief article. Nice....
Upendra Pratap ShahiPosted Mar 12, 2016, 8:01 AM
nice share..