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  • Essay / Introduction to ERP Systems and Issues Associated with...

    INTRODUCTION TO ERP SYSTEMS AND ISSUES ASSOCIATED WITH THEIR IMPLEMENTATIONRP stands for Enterprise Resource Planning. At first it was a normal software package for inventory, then developed for MRP systems. In the early 1990s, MRP-II was expanded to cover areas such as engineering, finance, human resources, project management, i.e. the almost complete range of activities within of any business, and the term ERP was coined. It is commercial software that enables the integration of transaction-oriented data and processes across an organization. It includes several modules that enable cross-organizational integration based on transaction data and business processes. It is not a separate object but acts as an umbrella covering the entire business process. It supports the entire organization at different levels by providing information in a highly integrated manner. Enterprise resource planning (ERP) systems, such as SAP, are widely used in many large companies over time. ERP receives little attention in the media headlines, but it has a moderate impact on management accounting and accountants. However, it is not claimed that SAP was the driving force behind these changes, but rather that SAP's characteristics of integration, standardization, routinization and centralization facilitated the changes that were already underway within of the company. ERP seeks to integrate and streamline business processes. Implementing ERP requires massive changes to the current system in order to fully realize the benefits of ERP. This requires commitment from senior management for onboarding that includes appropriate selection and training of management consultants and employees. Practically... middle of paper ... level that suits the business function of the company. Companies are allowed to select the software best suited to business operations from different vendors.ERP SystemsWhat is an ERP systemEnterprise Resource Planning (ERP) is a structured approach that, upon installation, connects different components of an entire organization in an integrated ERP system. . Data is transformed and organized into information which, in turn, supports decision making. Internal transaction processing consists of a main engine which is itself made up of integrated modules. Establishment and implementation involve major changes in the organizational process. ERP requires individuals to upgrade their skills. Different application modules are included in the ERP to integrate as a single business system. Selecting the Right ERP System Improvises the Business Process.