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Enterprise resource planning ERP is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software —typically a suite of integrated applications —that an organization can use to collect, store, manage, and interpret data from many business activities.
ERP systems can be local based or cloud-based. Cloud-based applications have grown in recent years due to information being readily available from any location with Internet access.
Traditional on-premise ERP systems are now considered legacy technology. ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials , production capacity —and the status of business commitments: orders, purchase orders , and payroll.
The applications that make up the system share data across various departments manufacturing, purchasing, sales, accounting , etc. The ERP system integrates varied organizational systems and facilitates error-free transactions and production, thereby enhancing the organization’s efficiency. However, developing an ERP system differs from traditional system development. The Gartner Group first used the acronym ERP in the s   to include the capabilities of material requirements planning MRP , and the later manufacturing resource planning MRP II ,   as well as computer-integrated manufacturing.
Without replacing these terms, ERP came to represent a larger whole that reflected the evolution of application integration beyond manufacturing. Not all ERP packages are developed from a manufacturing core; ERP vendors variously began assembling their packages with finance-and-accounting, maintenance , and human-resource components.
By the mids ERP systems addressed all core enterprise functions. Governments and non—profit organizations also began to use ERP systems. ERP systems experienced rapid growth in the s. Because of the year problem many companies took the opportunity to replace their old systems with ERP.
ERP systems initially focused on automating back office functions that did not directly affect customers and the public. Front office functions, such as customer relationship management CRM , dealt directly with customers, or e-business systems such as e-commerce and e-government —or supplier relationship management SRM became integrated later, when the internet simplified communicating with external parties. Rather than just manage buying, selling, etc. Rather than confine ERP system capabilities within the organization, it goes beyond the corporate walls to interact with other systems.
Enterprise application suite is an alternate name for such systems. ERP II systems are typically used to enable collaborative initiatives such as supply chain management SCM , customer relationship management CRM and business intelligence BI among business partner organizations through the use of various electronic business technologies. Developers now make more effort to integrate mobile devices with the ERP system.
Technical stakes of modern ERP concern integration—hardware, applications, networking, supply chains. ERP now covers more functions and roles—including decision making , stakeholders’ relationships, standardization , transparency , globalization , etc.
An ERP system covers the following common functional areas. Government resource planning GRP is the equivalent of an ERP for the public sector and an integrated office automation system for government bodies.
Both system implementations, in private and public organizations, are adopted to improve productivity and overall business performance in organizations, but comparisons private vs. Most ERP systems incorporate best practices. This means the software reflects the vendor’s interpretation of the most effective way to perform each business process. Systems vary in how conveniently the customer can modify these practices.
They can also help comply with de facto industry standards, such as electronic funds transfer. This is because the procedure can be readily codified within the ERP software and replicated with confidence across multiple businesses that share that business requirement. ERP systems connect to real—time data and transaction data in a variety of ways.
These systems are typically configured by systems integrators , who bring unique knowledge on process, equipment, and vendor solutions. Direct integration —ERP systems have connectivity communications to plant floor equipment as part of their product offering. This requires that the vendors offer specific support for the plant floor equipment their customers operate. Database integration —ERP systems connect to plant floor data sources through staging tables in a database.
Plant floor systems deposit the necessary information into the database. The ERP system reads the information in the table. The benefit of staging is that ERP vendors do not need to master the complexities of equipment integration. Connectivity becomes the responsibility of the systems integrator. An EATM offers the benefit of being an off—the—shelf solution. Custom—integration solutions —Many system integrators offer custom solutions.
These systems tend to have the highest level of initial integration cost, and can have a higher long term maintenance and reliability costs. Long term costs can be minimized through careful system testing and thorough documentation. Custom—integrated solutions typically run on workstation or server-class computers.
ERP’s scope usually implies significant changes to staff work processes and practices. Modular ERP systems can be implemented in stages. The typical project for a large enterprise takes about 14 months and requires around consultants.
Besides that, information processing influences various business functions e. This reduces inventory storage and increases delivery efficiency, and requires up-to-date data. Implementing ERP typically requires changes in existing business processes. It is therefore crucial that organizations thoroughly analyze processes before they deploy an ERP software. Analysis can identify opportunities for process modernization. It also enables an assessment of the alignment of current processes with those provided by the ERP system.
Research indicates that risk of business process mismatch is decreased by:. ERP implementation is considerably more difficult and politically charged in decentralized organizations, because they often have different processes, business rules, data semantics, authorization hierarchies, and decision centers.
A potential disadvantage is that adopting “standard” processes can lead to a loss of competitive advantage. While this has happened, losses in one area are often offset by gains in other areas, increasing overall competitive advantage. Configuring an ERP system is largely a matter of balancing the way the organization wants the system to work with the way it was designed to work.
ERP systems typically include many settings that modify system operations. For example, an organization can select the type of inventory accounting— FIFO or LIFO —to use; whether to recognize revenue by geographical unit, product line, or distribution channel; and whether to pay for shipping costs on customer returns.
Two-tier ERP software and hardware lets companies run the equivalent of two ERP systems at once: one at the corporate level and one at the division or subsidiary level.
For example, a manufacturing company could use an ERP system to manage across the organization using independent global or regional distribution, production or sales centers, and service providers to support the main company’s customers.
Each independent center or subsidiary may have its own business operations cycles , workflows , and business processes. Given the realities of globalization, enterprises continuously evaluate how to optimize their regional, divisional, and product or manufacturing strategies to support strategic goals and reduce time-to-market while increasing profitability and delivering value.
Since these smaller companies’ processes and workflows are not tied to main company’s processes and workflows, they can respond to local business requirements in multiple locations. ERP systems are theoretically based on industry best practices, and their makers intend that organizations deploy them “as is”.
Technical solutions include rewriting part of the delivered software, writing a homegrown module to work within the ERP system, or interfacing to an external system. These three options constitute varying degrees of system customization—with the first being the most invasive and costly to maintain. Key differences between customization and configuration include:. ERP systems can be extended with third—party software, often via vendor-supplied interfaces.
Data migration is the process of moving, copying, and restructuring data from an existing system to the ERP system. Migration is critical to implementation success and requires significant planning. Unfortunately, since migration is one of the final activities before the production phase, it often receives insufficient attention. The following steps can structure migration planning: . Often, data migration is incomplete because some of the data in the existing system is either incompatible or not needed in the new system.
As such, the existing system may need to be kept as an archived database to refer back to once the new ERP system is in place. The most fundamental advantage of ERP is that the integration of a myriad of business processes saves time and expense. Management can make decisions faster and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include: . The CSF method has helped organizations specify their own critical information needs.
Achieving satisfactory results in the key areas of critical success factors can ensure competitive advantage leading to improved organizational performance and overcome the challenges faced by organizations. Critical success factors theoretical foundation was improved upon, verified, and validated by several researchers, which underscored the importance of CSFs and its application to ERP project implementations.
The application of critical success factors can prevent organizations from making costly mistakes, and the effective usage of CSFs can ensure project success and reduce failures during project implementations. Some of the important critical success factors related to ERP projects are: Know your data, longer and more integrated testing, utilization of the right people, longer stabilization period hyper-care , clear communication, early buy-in from business, have a Lean Agile program, less customization, ERP projects must be business-driven and not IT-driven.
Research published in based on a survey of manufacturers, retailers and distributors found “high” rates of interest and adoption of ERP systems and that very few businesses were “completely untouched” by the concept of an ERP system.
The term “postmodern ERP” was coined by Gartner in , when it first appeared in the paper series “Predicts “. The basic idea is that there should still be a core ERP solution that would cover most important business functions, while other functions will be covered by specialist software solutions that merely extend the core ERP. This concept is similar to the so-called best-of-breed approach  to software execution, but it shouldn’t be confused with it.
While in both cases, applications that make up the whole are relatively loosely connected and quite easily interchangeable, in the case of the latter there is no ERP solution whatsoever. Instead, every business function is covered by a separate software solution. There is, however, no golden rule as to what business functions should be part of the core ERP, and what should be covered by supplementary solutions. According to Gartner, every company must define their own postmodern ERP strategy, based on company’s internal and external needs, operations and processes.
For example, a company may define that the core ERP solution should cover those business processes that must stay behind the firewall, and therefore, choose to leave their core ERP on-premises. At the same time, another company may decide to host the core ERP solution in the cloud and move only a few ERP modules as supplementary solutions to on-premises.
Microsoft office 2007 error 1606 could not access network location free –
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These estimates are calculated with data collected from employers in all industry sectors in metropolitan and nonmetropolitan areas in every state and the District of Columbia. Additional information, including the hourly and annual 10th, 25th, 75th, and 90th percentile wages, is available in the downloadable XLS file.
Major Occupational Groups Note –clicking a link will scroll the page to the occupational group :. Estimates do not include self-employed workers. The smaller the relative standard error, the more precise the estimate. Menu Search button Search:. Redesigned News Releases. May National Occupational Employment and Wage Estimates United States These estimates are calculated with data collected from employers in all industry sectors in metropolitan and nonmetropolitan areas in every state and the District of Columbia.
Business and Financial Operations Occupations. Life, Physical, and Social Science Occupations. Educational Instruction and Library Occupations. Healthcare Practitioners and Technical Occupations. Food Preparation and Serving Related Occupations. Building and Grounds Cleaning and Maintenance Occupations. Office and Administrative Support Occupations. Farming, Fishing, and Forestry Occupations. Installation, Maintenance, and Repair Occupations.
Transportation and Material Moving Occupations.