Strategic and operational opportunities and challenges that ERP systems may bring to an organisation

Exposé Entreprises & gestion Management organisation

Date de publication :

30/03/2007

Langue :

Français

Format :

.doc

Nombre de pages :

4 pages

Niveau :

avancé

Consulté :

7 fois

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non évalué

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Sommaire :

Sommaire

Opportunities that such a system can bring to an organisation
The challenges it raises
Can this system be implemented everywhere?

Résumé :

In the nineties, most of the large companies in the world have installed erp (enterprise resource planning). Indeed with erp system they are expecting to a decreasing total cost of ownership. They want to drop the risks as well, to increase control and transparency, to have rapid returns on Investment and the ability to exploit new business opportunities. But firms that implement erp system especially expect a sustainable creation of value. What is really an erp system? One can delimit it as a set of integrated business applications or modules which carry out common business functions and are usually purchased from a software vendor. To sum up, it is one single integrated system, focused on internal value chain with one data storage: that is the main point. The main software vendor today is called SAP. This company has been founded in 1972; it is the first business application software vendor. It has more than 10 000 customers spread in nineteen countries and control around thirty percent of the total market for erp systems. Enterprise resource planning system is the product of a long evolution.
It is important to know that between the fifties and the nineties there is no integration, that is to say no communication between systems. Companies have a functional organisation. It means that they are separated in divisional departments; there is no "legacy system" (individual programs and different vendors), and there is no integration of applications and data as a result. So, systems do not communicate because of a separate functional information system structure. In the fifties, financial "payroll" systems are developed. In the sixties there is I.S. (Information system) for the major corporate functions and functional information systems. In the seventies it is the beginning of the Material requirement planning procedures (MRP) that is delimited as "a software based production planning and inventory control system used to manage manufacturing processes". Then the MRP evolves to the manufacturing resource planning system (MRP II) which is "a method for the effective planning of all resources of a manufacturing company" . Eventually, the erp system is created in the nineties and then the erp II which is an extended erp. So we can wonder what are the strategical and operational opportunities and challenges that erp systems may bring to an organisation.
First, we will focus on the opportunities that such a system can bring to an organisation, then to the challenges it raises, and then we will wonder if this system can be implemented everywhere.