ERP Notes For MBA

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Subject Code : BA7301
Subject
: ENTERPRISE RESOURCE PLANNING
Class
: II MBA

UNIT I INTRODUCTION
Overview of enterprise systems – Evolution - Risks and benefits - Fundamental
technology - Issues to be consider in planning design and implementation of cross
functional integrated ERP systems.
1.1.1. Introduction
ERP is an acronym that stands for Enterprise Resource Planning. ERP software saw
phenomenal interest from the corporate sector during the period 1995-2000. The ERP
market is estimated to be in excess of USD 80 Billion in the year 2000 Many analysts
feel that today’s global business environment - products and services customized to suit
the individual needs of millions of customers, delivered over multiple timelines in a 24X7
basis - would have been impossible without such enterprise software. Undoubtedly ERP
represents one of the most complex and demanding application software in the corporate
environment.
1.1.2 What is ERP?
ERP is a package software solution that addresses the enterprise needs of an organization
by tightly integrating the various functions of an organization using a process view of the
organization.
A. ERP software is ready-made generic software; it is not custom-made for a specific
firm. ERP software understands the needs of any organization within a specific
industry segment. Many of the processes implemented in an ERP software are core
processes such as order processing, order fulfillment, shipping, invoicing, production
planning, BOM (Bill of Material), purchase order, general ledger, etc., that are
common to all industry segments.
B. ERP does not merely address the needs of a single function such as finance,
marketing, production or HR; rather it addresses the entire needs of an enterprise that
cuts across these functions to meaningfully execute any of the core processes.
C. ERP integrates the functional modules tightly. It is not merely the import and export
of data across the functional modules. The integration ensures that the logic of a
process that cuts across the function is captured genuinely. This in turn implies that
data once entered in any of the functional modules (whichever of the module owns
the data) is made available to every other module that needs this data. This leads to
significant improvements by way of improved consistency and integrity of data.
D. ERP uses the process view of the organization in the place of function view, which
dominated the enterprise software before the advent of ERP


Sasurie College Of Engineering MBA ERP (Enterprise Resource Planning) paper notes/syllabus