ERP and Beyond

ERP and Beyond

Suresh Subramoniam (Prince Sultan University, Saudi Arabia), Mohamed Tounsi (Prince Sultan University, Saudi Arabia), Shehzad Khalid Ghani (Prince Sultan University, Saudi Arabia) and K. V. Krishnankutty (College of Engineering, Trivandrum, India)
Copyright: © 2009 |Pages: 17
DOI: 10.4018/978-1-59904-859-8.ch024
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Enterprise-wide automation has already transformed the relations among suppliers, purchasers, producers, and customers. Conventional ERP helps only to automate individual departments. It could neither integrate its back-office benefits into the front-office, nor could it establish consistent control of all business processes. Competitive pressures and globalization stresses the need for more effective, total enterprise solutions. The world class competition, modern business environment, and the availability of the Internet are the premises which stress the need for ERP. The salient features of ERP II are presented in addition to describing some of the disruptive technologies which will help reengineer ERP systems rapidly. The results of an international survey pertaining to the embedding of intelligence in the modern day ERP shows an evolutionary trend. The order placement over the Internet by a sales clerk from a remote location forms a part of this chapter to benefit the readers in understanding the functioning of an ERP system.
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Enterprise is a group of people and associated resources to achieve a common goal. Enterprise Resource Planning (ERP) System is an enterprise wide system which encompasses corporate mission, objectives, attitudes, beliefs, values, operating style and people who make the organization. It is a software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions under a common software platform. In other words, ERP systems are computer based systems designed to process an organization’s transactions. It facilitates integrated and real-time planning, production and customer response. ERP has multilingual capability, multi-currency handling ability, and can recognize legal and tax reporting needs of various nations across the world.

The real need for such an integrated system has emerged with the onset of Supply Chain Management, e-business and global operations which calls for exchange of information with other companies and customers directly (Krajewski et al., 2000). A world-class competitor means being successful against any competitor on quality, lead time, flexibility, cost/price, customer service and innovation (Figure 1). It needs transforming relations among suppliers, purchasers, producers and customers. This can be achieved only through enterprise automation which assists innovators to achieve their market share and at the same time operate at peak efficiency to satisfy customer needs. The world in which we do business is shrinking, and virtually every enterprise is either marketing or selling to customers in other countries, or simply using parts or materials that are produced elsewhere. Internet has overcome time and distance to a great extent. It has become the need of the hour to think globally and to include the same in plans, processes and strategies.

Figure 1.

Key success factors for achieving World-Class status

Globalization and Web commerce riding on the development of the Internet have changed traditional business behaviors and practices. Leveraging the Internet by the business has become a need to quickly establish a virtual presence. They must use collaborative technology in order to respond to customer’s requirements better and faster. When the operations are scattered through multiple locations around the world, the need is to gain visibility across all sites. This enhanced visibility can lead to more negotiating power for purchasing parts and more efficient centralized accounts payable and receivable thereby improving overall performance. Solutions like ERP, supply chain management or CRM solutions provide tools to manage the information that is essential to growing business value.

The need to achieve world class status, rapid development in Internet and related technologies, and the evolving business trends are the premises which accelerates the evolution of ERP systems. Virtually every enterprise is either marketing or selling to customers in other countries, or simply buying parts or materials that are produced elsewhere. It has become a necessity for businesses to embrace Internet to quickly establish virtual presence through web commerce.

Enterprise wide automation alone can address transforming relations among suppliers, purchasers, producers and customers. ERP has fallen short in the following areas that are critical to today’s business needs ( Scope of conventional ERP is limited; conventional ERP helps automate individual departments and did not integrate its back-office benefits into the front-office to help businesses manage people, workloads and supply-chain issues; it could not establish consistent control of all the processes of the business. Competitive pressures and globalization have made it clear that the business world is still in need of more effective, total enterprise solutions. Figure 2 shows the typical ERP architecture.

Figure 2.

ERP Architecture

Key Terms in this Chapter

Integrated data model: The integrated management of information leads to Integrated Data Model which supports a centralized data repository. This data repository gives up to date status of the organization at any point of time without data redundancy and assuring total integrity.

Enterprise Resource Planning (ERP) System: ERP system is an enterprise wide system which encompasses corporate mission, objectives, attitudes, beliefs, values, operating style and people who make the organization.

ERP II: The most apparent change from ERP to ERP II is a change in focus from one that is totally enterprise-centric and preoccupied with internal resource optimization and transactional processing to a new focus on process integration and external collaboration. ERP II application deployment strategies relates to information that is exchanged between two or more businesses over the Internet.

Manufacturing Resources Planning (MRP II) System: MRP II incorporated financial accounting, human resource management and distribution in addition to material requirements planning. It provides information regarding staffing levels and overtime needs through detailed capacity requirements planning.

Digital Firm: Digital firm is a digitally enabled environment for the interaction and processing of information among customers, employees, employer and the stakeholders.

c-Commerce: The B2B exchange of information electronically via the Internet for enabling ERP II is known as collaborative commerce or c-commerce.

Enterprise: Enterprise is a group of people and associated resources to achieve a common goal.

Material Requirements Planning (MRP) System: MRP was used in the 1970s for raw material ordering based on order at hand.

Complete Chapter List

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Editorial Advisory Board
Table of Contents
Jatinder N. D. Gupta, Sushil Sharma, Mohammad A. Rashid
Jatinder N. D. Gupta, Sushil Sharma, Mohammad A. Rashid
Chapter 1
Nancy Alexopoulou, Panagiotis Kanellis, Mara Nikolaidou, Drakoulis Martakos
Efficient response to change, both upon expected and unpredicted contingencies, is a critical characteristic for modern enterprises. This chapter... Sample PDF
A Holistic Approach for Enterprise Agility
Chapter 2
Hossana H. Aberra
SAP Business Blueprint is a vital part of SAP implementation exercise. A well-defined business blueprint may set the foundation for successful... Sample PDF
What is SAP Business Blueprint?
Chapter 3
Rogerio Atem de Carvalho
This chapter introduces the key aspects of Free/Open Source Enterprise Resources Planning systems (FOS-ERP). Starting by related work carried out by... Sample PDF
Free and Open Source Enterprise Resources Planning
Chapter 4
Brian H. Cameron
Business process modeling (BPM) is a topic that is generating much interest in the information technology (IT) industry today. Business analysts... Sample PDF
The Changing Nature of Business Process Modeling: Implications for Enterprise Systems Integration
Chapter 5
Alok Mishra
In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the... Sample PDF
Enterprise Resource Planning Systems: Effects and Strategic Perspectives in Organizations
Chapter 6
Gary P. Moynihan
An executive information system (EIS) is a software system designed to support the informational needs of senior management. The EIS is... Sample PDF
An Overview of Executive Information Systems
Chapter 7
Joseph Bradley
Enterprise Resource Planning systems have proven difficult and costly to implement. Organizations must consider the risks and rewards of embarking... Sample PDF
Enterprise Resource Planning System Risks and Rewards
Chapter 8
Andrea Masini
After observing that the pervasiveness of IT may soon render it strategically irrelevant, management scholars have recently questioned the value of... Sample PDF
ERP-Driven Performance Changes and Process Isomorphism
Chapter 9
Ronda R. Henning
The application software life cycle considers the functionality of a given collection of components within the context of a consumer’s requirements... Sample PDF
Application Integration within the Enterprise Context
Chapter 10
Sanjay Mathrani, Mohammad A. Rashid, Dennis Viehland
A significant investment in resources is required for implementation of integrated enterprise systems as technology solutions while the... Sample PDF
The Impact of Enterprise Systems on Business Value
Chapter 11
Charlotte H. Mason, Aleda V. Roth
Growing competitive pressures and escalating customer demands have led businesses to sophisticated information technology to manage costs and... Sample PDF
The Right Path to SCM-CRM Integration
Chapter 12
Euripidis Loukis, Ioakim Sapounas, Konstantinos Aivalis
This chapter is dealing with the alignment of enterprise systems with business strategy and its impact on the business value that enterprise systems... Sample PDF
Enterprise Systems Strategic Alignment and Business Value
Chapter 13
Sanjay Mathrani, Mohammad A. Rashid, Dennis Viehland
The market for enterprise systems (ES), continues to grow in the post millennium era as businesses become increasingly global, highly competitive... Sample PDF
Enterprise Systems in Small and Medium-Sized Enterprises
Chapter 14
Kerstin Fink, Christian Ploder
Small and medium-sized enterprises (SMEs) are a vital and growing part of any national economy. Like most large businesses, SMEs have recognized the... Sample PDF
Integration Concept for Knowledge Processes, Methods, and Software for SMEs
Chapter 15
Tobias Schoenherr, Ditmar Hilpert, Ashok K. Soni, M.A. Venkataramanan, Vincent A. Mabert
Although the research on integrated enterprise systems (ES) is proliferating, the knowledge base about ES implementations, usage and experiences... Sample PDF
Enterprise System in the German Manufacturing Mittelstand
Chapter 16
Darshana Sedera
Organizations invest substantial resources in acquiring Enterprise Systems, presumably expecting positive impacts to the organization and its... Sample PDF
Size Matters! Enterprise System Success in Medium and Large Organizations
Chapter 17
Joseph Bradley
ERP implementation projects normally involve a single vendor providing the packaged software for the entire system. Although most companies follow... Sample PDF
Implementing Best of Breed ERP Systems
Chapter 18
Ganesh Vaidyanathan
Enterprise resource planning systems are complex yet single, integrated software programs that runs off a single database so that the various... Sample PDF
Enterprise Resource Systems Software Implementation
Chapter 19
Calin Gurau
This chapter considers the importance of business modelling for implementing e-CRM systems. The introduction of e-business models requires the... Sample PDF
Restructuring the Marketing Information System for eCRM: An Application of the Eriksson-Penker Method
Chapter 20
Albert Boonstra
At the present moment, many hospitals are going through a process of change directed at the integrated delivery of health care. Enterprise Systems... Sample PDF
Analyzing an ES Implementation in a Health Care Environment
Chapter 21
S. Padmanaban
ERP systems have become key enablers of businesses today. While many organizations wish to adopt ERP for competitive advantage, they find choosing... Sample PDF
Designing to Deploying Customisable ERP Cost Effectively
Chapter 22
Mateja Podlogar, Katalin Ternai
This chapter introduces the ERP systems, their complexity, and especially their integration in higher education as a significant challenge for many... Sample PDF
ERP Systems in Higher Education from Regional Perspective
Chapter 23
Valentin Nicolescu, Holger Wittges, Helmut Krcmar
This chapter provides an overview of past and present development in technical platforms of ERP systems and its use in enterprises. Taking into... Sample PDF
From ERP to Enterprise Service-Oriented Architecture
Chapter 24
ERP and Beyond  (pages 329-345)
Suresh Subramoniam, Mohamed Tounsi, Shehzad Khalid Ghani, K. V. Krishnankutty
Enterprise-wide automation has already transformed the relations among suppliers, purchasers, producers, and customers. Conventional ERP helps only... Sample PDF
ERP and Beyond
Chapter 25
Gita A. Kumta
The chapter introduces the essence of ERP in government as a tool for integration of government functions which provides the basis for citizen... Sample PDF
E-Government and ERP: Challenges and Strategies
Chapter 26
Manish Gupta, Raj Sharman
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Emerging Frameworks in User-Focused Identity Management
Chapter 27
Ramón Brena, Gabriel Valerio, Jose-Luis Aguirre
From the Knowledge Management perspective, Knowledge distribution is a critical process in organizations. As many of the other Knowledge-related... Sample PDF
Next-Generation IT for Knowledge Distribution in Enterprises
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