ERP Systems - ERP Software, Business Processes, Users and Hardware
From a systems perspective, the components of an ERP system are the common components of Management Information Systems (MIS) -
software, business processes, users and hardware. AN ERP system is more than sum of its parts or components. Those components interact
together to achieve a common goal - streamline and improve organizations' business processes.
ERP Software
ERP software applications are module-based. Each software module automates business processes within a functional department. ERP applications
can be implemented and deployed module-by-module. Major ERP software modules cover the major functional areas of organizations. Common ERP modules
include product planning module, parts and material purchasing module, inventory control module, product distribution module, order tracking
module, finance module, accounting module, marketing module, and HR module. Organizations often selectively implement the ERP modules that match
their business needs.
Reengineering of Business Processes
Anthony, R. A classifies organizational processes into three levels - strategic planning, management control and operational control.
The driving force behind the acceptance of ERP was to streamline and automate enterprise-wide resource planning at strategic planning level.
In reality, much of ERP success has been in facilitating operational coordination across departments. The success of ERP at strategic planning,
management control calls for the integration of ERP with other enterprise applications and demand long term management commitment.
ERP Users
Following Anthony, R. A's classification of organizational processes, workers can be classified into 1) those who execute strategic planning,
2) those who perform managerial control, and 3) those who do operational control. Even though ERP applications have been mostly beneficial to
the operational control, the users of a ERP system include workers from all levels of an organization.
Operating Systems for ERP
ERP software runs on various operating systems and hardware, from UNIX, Linux, Windows to mainframe. Since one organization may acquire ERP and other
enterprise software from many different vendors, the requirements for running ERP applications are common - security, stability, scalability and
open standards.
Related Topics
ERP Definition - What is ERP
History and Evolution of ERP
ERP Modules - Production Planning, Purchaing, Inventory Control, Sales, Marketing and HR
ERP Benefits - Operational Control, Management Control and Strategic Planning
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