ERP
Enterprise resource planning (ERP) packages provide a standardised company-wide system to support the primary business processes.ERP software integrates standard business functions into one complete system to streamline processes and information across the entire organization. Functions include inventory and order management, accounting, human resources, and customer relationship management (CRM), based around a shared database that different divisions - sales, finance - can all access.

ERPs started as systems to support materials requirements planning in manufacturing and expanded in complexity and scope. The ERP integrates and automates core business processes, bring great benefits in information flow and hence business process flow. However, implementation is difficult and complex. Old systems must be replaced and the usual approach is to implement modules of ERP in a staged rollout and gradually build up the ERP. Costs of implementation can be great, as can failure. Hershey, the chocolate company's first implementation resulted in a loss of $150 million and a 35% drop in their share price,

Tasks

Question 1. What is an ERP? How have we arrived at the sophisticated systems such as MySAPwe have today? Using an example system such as MySAP, explain the functionality of an ERP. What hardware resources does it require?

Question 2. What are the benefits of ERPs? How would you persuade an organisation to adopt an ERP? Outline a process for ERP implementation.

Question 3. Many ERP implementations fail. Using an example such as Hershey's chocolate (there are many others to choose from) identify some core problems and issues that arise during implementation.