Enterprise Resource Planning Term Paper
Enterprise Resource
Planning (ERP) System
Implementation and Impact
December, 2014
An Introduction to ERP
An Enterprise Resource Planning (ERP) system, as defined by the ISACA, “is an integrated software application that covers literally all functions of an enterprise, including sales and marketing, distribution and logistics, procurement, manufacturing, finance, and accounts, personnel and management reporting” (Sayana, 2004). It is currently the highest level of computer management and aids businesses with the integration of its processes. Rather than the typical management information systems (MIS) with separate systems for each function, an ERP system connects all the organization functions in order to create a more unified and accurate view of activities. While other companies may rely on more manual and time-consuming processes, ERP allows for company-wide operations (Matys, 2012).
There are several factors that allow ERP to be a unique system within the business organization. As mentioned above, the integration of processes is very distinctive with ERP systems. Another characteristic is the ability to easily modify the database. With one module, it is much quicker and less evasive to perform system updates than it would be with MIS.
Likewise, the streamlining of processes becomes possible in real time (Matys, 2012).
Figure 1 below shows how the different business functions are independent in a basic
MIS system. For business using an ERP system, the activities are coordinated and the organization better functions as a whole (Gleim, 2014). Notice text of the MIS functions; they are labeled as ‘systems.’ This differs from the term ‘module’ used in the ERP diagram. The difference in wording is not accidental. System is used to explain one unit with a relatively small scope; contrarily, the term module is used to describe something larger and more complex: it insinuates integration and interchangeability. Thus, the ‘modules’ of the ERP system encompass
much
Planning (ERP) System
Implementation and Impact
December, 2014
An Introduction to ERP
An Enterprise Resource Planning (ERP) system, as defined by the ISACA, “is an integrated software application that covers literally all functions of an enterprise, including sales and marketing, distribution and logistics, procurement, manufacturing, finance, and accounts, personnel and management reporting” (Sayana, 2004). It is currently the highest level of computer management and aids businesses with the integration of its processes. Rather than the typical management information systems (MIS) with separate systems for each function, an ERP system connects all the organization functions in order to create a more unified and accurate view of activities. While other companies may rely on more manual and time-consuming processes, ERP allows for company-wide operations (Matys, 2012).
There are several factors that allow ERP to be a unique system within the business organization. As mentioned above, the integration of processes is very distinctive with ERP systems. Another characteristic is the ability to easily modify the database. With one module, it is much quicker and less evasive to perform system updates than it would be with MIS.
Likewise, the streamlining of processes becomes possible in real time (Matys, 2012).
Figure 1 below shows how the different business functions are independent in a basic
MIS system. For business using an ERP system, the activities are coordinated and the organization better functions as a whole (Gleim, 2014). Notice text of the MIS functions; they are labeled as ‘systems.’ This differs from the term ‘module’ used in the ERP diagram. The difference in wording is not accidental. System is used to explain one unit with a relatively small scope; contrarily, the term module is used to describe something larger and more complex: it insinuates integration and interchangeability. Thus, the ‘modules’ of the ERP system encompass
much
Cited: Bae, B. B., & Ashcroft, P. (2004). Implementation of ERP Systems: Accounting and Auditing Implications Gleim, I. N. (2014). Business Environment and Concepts. Gainesville: Gleim Publications. Hoffman, J. (2014). 10 Steps to Blueprinting Successful ERP Projects. Retrieved from RJT Compuquest: http://rjtcompuquest.com/10-steps-to-blueprinting-successful-erp-projects/ Matys, T. (2012, September 11). A Student Introduction to ERP. Retrieved from SlideShare: http://www.slideshare.net/tmatys/erp-a-student-introduction NMATec. (2008). What is an ERP System? Retrieved from NMA Technologies: http://www.nmatec.com/workwise/what Sayana, A. S. (2004). Auditing Governance in ERP Projects. Retrieved from ISACA: http://www.isaca.org/Knowledge-Center/ITAF-IS-Assurance-Audit-/IT-AuditBasics/Pages/IT-Audit-Basics-Auditing-Governance-in-ERP-Projects.aspx The Future of ERP: Top ERP Trends for 2014. (2014, April 25). Retrieved from WorkWise: http://workwisellc.com/future-erp-top-erp-trends-2014/ Trepper, C. (1999, August 1). ERP Project Management is Key to a Successful Implementation.