Essay - ERP Enterprise Resource Planning Introduction the Basic Concept of an...


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ERP

Enterprise Resource Planning

Introduction

The basic concept of an Enterprise Resource Planning (ERP) system is to act as the coordination and synchronization point of inbound supplies, matching up customer orders while also scheduling production ***** manufacturing *****. ***** systems typically also include Accounts Payable (AP) and ***** Receivable (AR) systems so that financial reporting of transactions can be completed. In previous generations of ERP systems it was considered sufficient to support a single location, yet today multi-instance ERP systems that are capable ***** managing ***** coordination of inbound orders and their fulfillment across multiple locations is increasingly a commonplace requirement (Yang, Lin, Lin, Huang, 2006). ERP systems al***** often have Customer Relationship Management (CRM), Supply Chain Management (SCM), and ***** Distributed Order Management (DOM) systems integrated into them to make the underlying business processes more efficient ***** agile, capable of responding to market requirements.

The Implementation and Use of ERP *****

The greatest impediment to any successful ERP implementation is resistance ***** change on ***** part of both the managers who will use ***** system and their employees (Youngberg, Olsen, Hauser, 2009). Overcoming resistance to ***** takes a series of strategies called change management, as they seek to provide those who will use the system with an opportunity to "own" the changes ***** their jobs and the processes and procedures they rely on daily to do their *****. Key ***** the ***** implementation of any ERP system is the transfer of knowledge ***** its being organized into taxonomies that are usable in the context of ***** new ***** and its processes (Xu, Ma, 2008). Once initiatives ***** strategies are in place for nurturing and providing those employees and managers most affected by the ***** of ***** ***** system, intensive ***** process re-engineering (BPR) typically takes place (Xu, *****, 2008). Once business *****es have been re-engineered and then integrated ***** the new ERP systems' workflows, standardization of processes typically occurs so that the comp***** implementing the system can attain higher levels of efficiency and productivity (Chtioui, 2009). From ***** workflows to the ***** ***** procedures and even down to the graphical interfaces of the ERP applications, it is critical to get user's input and allow them to have ownership of the system before actually implementing the software (Youngberg, Olsen, *****, 2009).

***** actual ***** potential benefits of implementing an ERP ***** in many organizations center around ***** more driven by customer needs and be*****g ***** responsive to key markets and customer segments. The concept of becoming a demand-driven organization through the use of ***** systems h***** been well-proven, has the ability to get greater levels of ***** performance ***** more process efficiency as well. The near-term benefits are ***** levels of process and in many cases, system integration that allow ***** to perform more efficiently. In addition, ERP systems can greatly reduce the number of errors an organization makes in its supply cha*****, order management, manufacturing, and fulfillment processes as *****. Future potential benefits include the ability to anticipate and

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