The Enterprise Resource Planning (ERP) System

Paper Summary:

This paper explains that the multi-module application software, which form an enterprise resource planning (ERP) system helps a business manage product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, tracking orders, manage finance and human resources, provide supply chain management, customer relationship management and electronic commerce applications integrated with their ERP software packages. The author points out that the major benefit of ERP systems is the elimination of manual processes that cause operational inefficiencies and poor data quality. The paper relates that the ERP market is characterized by massive consolidation with relatively commoditized software, meaning that software evaluations can safely include a short list of the three leaders, SAP, Oracle and PeopleSoft, and perhaps a vertically focused supplier or a SME specialist such as Microsoft.

Table of Contents
Introduction
The Benefits of ERP
The Pitfalls of ERP
ERP Evaluation Criteria
Top Three ERP Vendors
Conclusion

From the Paper:

"The ERP vision of one application and one database for everything your company is doable, there are many factors that must be considered before embarking on such a tremendous undertaking. First, ERP systems are extremely expensive and time consuming. AMR, a leading research and advisory firm, advises that moving to a single instance will cost companies $7 million to $12 million for every billion of revenue, and that projects will still take from one to three years. Even after the initial implementation, ERP's are very complex and typically require costly experts to support and maintain."

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