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02. Introduction to ERP Enterprise Resource Planning (Second Edition) By Alexis Leon What is ERP? ã ERP is an abbreviation for Enterprise Resource Planning and means, the techniques and concepts for integrated management of businesses as a whole from the viewpoint of the effective use of management resources to improve the efficiency of enterprise management. ã ERP packages are integrated (covering all business functions) software packages that support the ERP concepts. ã ERP software is a mi
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  Enterprise Resource Planning (Second Edition) By Alexis LeonEnterprise Resource Planning (Second Edition) By Alexis Leon 02. Introduction to ERP02. Introduction to ERP  Enterprise Resource Planning (Second Edition). Copyright 2008, Alexis Leon. All rights reserved.  What is ERP? ã ERP is an abbreviation forEnterprise Resource Planningandmeans, the techniques and concepts forintegrated managementof  businesses as a whole from the viewpoint of the effective use of management resources to improve the efficiency of enterprisemanagement.ã ERP packages areintegrated(covering all business functions)software packages that support the ERP concepts.ã ERP software is a mirror image of the major business processes of an organization, such as customer order fulfillment andmanufacturing.ã ERP  integratesall business functions into a single, integratedsoftware program that runs on a single database so that the variousdepartments can more easily share information and communicate with each other.ãTheintegrated approachof  ERP has tremendous power andpotential in improving theefficiency ,productivity,and competitivenessof the organization.  Enterprise Resource Planning (Second Edition). Copyright 2008, Alexis Leon. All rights reserved. Common Myths about ERP 1.ERP meansmore work and procedures2.ERP will make many employees redundant and jobless3.ERP is the sole responsibility of themanagement4.ERP is just for themanagers/ decision-makers5.ERP is just formanufacturing organizations6.ERP is just for theERP implementation team7.ERPslowsdown the organization8.ERP is just toimpress customers9.ERP package willtake care of everything1.OneERP package will suit everybody 1.ERP is very expensive2.Organizationscan succeedwithout ERP  Enterprise Resource Planning (Second Edition). Copyright 2008, Alexis Leon. All rights reserved. History of ERP ãOrigins in themanufacturing industryã1960’s– Inventory management andcontrol systemsã1970’s– Materials Requirement Planning(MRP) and Closed-loop MRPã1980’s– Manufacturing RequirementsPlanning (MRP II)ã1990’s– Enterprise Resource Planning(ERP)ã21 st century– ERP II
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