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The keyword in Enterprise Resource Planning is Enterprise. This is the ambitious goal of an ERP, to integrate an organization into one information system. That is a tall order, building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse. Each of those departments typically has its own computer system, each optimized for the particular ways that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other.
Here you can see a general evolution of ERP systems. They started as customized and proprietary Inventory control systems in the 1960’s. In the 1970’s the focus shifted to Material Requirement Planning which provided raw materials and component management and procurement. In the 1980’s the model continued to grow by including distribution channel functions. In the 1990’s This model grew further into the fully defined business suites that we have come to know as Enterprise Resource Planning Systems. The development of these products was perpetuated by the desire to move programs off of customized mainframe programs, the development of new technologies, the decentralization of businesses, and the desire to implement BPR. CRM, which first gained prominence in the mid-1990s, was the logical progression of ERP, as it was designed to enhance a company's front-desk activities. Customer interaction entered a new era with the advent of call centers supported by CRM software, which allowed companies to direct marketing activities and build relationships with distinct groups of customers. CRM also promised to improve the profitability and effectiveness of the company by automating many processes, making better use of available staff and reducing overall costs. CRM offers a utopian answer to many challenges. With an integrated CRM solution, companies can detect changes in customer buying habits, understand their needs faster than the competition and respond to customer demands in double-quick time. Today, the model grows and ERP companies are trying to fully Internet Enable their products and redesign their products for the new business models. What was once internally focused is now externally focused.
In the 1990’s the key was internal integration and ERP implementations in the US were being rapidly completed. This has left the ERP as a standard in many mid-size and large organizations. Today the focus is on linking your internally focused applications to front-end web systems and B2B exchanges. In the same manner the CRM systems are also being linked accordingly. The ASP market was hot, but is now cooling considerably. In any case it is a model that will persist and will create the ability to have external companies host your ERP for you. This opens new markets for smaller organizations that do not have the IT staff or the knowledge necessary to manage their own ERP. Overall, the market has been in a state of decline for approximately two years. There are a number of factors which have caused this decline, but saturation is certainly one main factor. The latest market segment for ERP’s is the public sector which is now implementing these systems Finally, overall new implementations will continue to decline due to the fact that the new business models are externally focused. Therefore if you are building a system today you would probably use a best of breed solution to create your information system. However the ERP manufacturers certainly can rebound to address the needs of these users and create more flexible solutions to Internet enable their applications.
In the 1990’s the key was internal integration and ERP implementations in the US were being rapidly completed. This has left the ERP as a standard in many mid-size and large organizations. Today the focus is on linking your internally focused applications to front-end web systems and B2B exchanges. In the same manner the CRM systems are also being linked accordingly. The ASP market was hot, but is now cooling considerably. In any case it is a model that will persist and will create the ability to have external companies host your ERP for you. This opens new markets for smaller organizations that do not have the IT staff or the knowledge necessary to manage their own ERP. Overall, the market has been in a state of decline for approximately two years. There are a number of factors which have caused this decline, but saturation is certainly one main factor. The latest market segment for ERP’s is the public sector which is now implementing these systems Finally, overall new implementations will continue to decline due to the fact that the new business models are externally focused. Therefore if you are building a system today you would probably use a best of breed solution to create your information system. However the ERP manufacturers certainly can rebound to address the needs of these users and create more flexible solutions to Internet enable their applications.
What is SAP? Well it is an ERP of course!! In the I.T. world we are in a state of acronym overload and here are two more acronyms for you. So if SAP is an ERP, what is an ERP?
Here are some specifics on SAP
This is the standard model of SAP R/3 and here you can visibly see the modular design of the system. One organization may have one mix of modules and one organization may use a different mix.
The International Demonstration and Education System (IDES) contains a fully-fledged model company that has been set up in an R/3 System. The IDES corpo-rate group comprises a number of companies, each with predefined business tasks. All of these companies can be used individually, or in interaction with each other, to demonstrate how the R/3 System is integrated, and the range of functions that are available. IDES is used principally in internal and external training courses, self-learning programs, and for presentations. It aims to prepare project team members and endusers for using the R/3 System in practice. The IDES system provides an ideal learning environment: users get to work in a system that has been fully custom-ized, and contains real-life master data and transaction data. The system further facilitates the transfer of knowledge by providing extensive data descriptions and process descriptions for cross-application business processes. Online documentation The realistic business processes of the company group have been set up as self-learning units in IDES. The online documentation in IDES plays a central role in this self-learning process. Since integrated process flows are already defined in the system, users can use the IDES online documentation to familiarize themselves gradually with the core functions in any of the R/3 components. Detailed process descriptions and realistic business data mean that even beginners and users with-out detailed R/3 knowledge can familiarize themselves quickly with the R/3 Sys-tem. This online help can also be used as a basis for developing internal training courses and holding R/3 presentations.