What is ERP? Explain its development process and reason for its growth.

A Management Information System ICT Revision Questions and Answers

―ERP is a solution which facilitates company-wide integrated information systems, covering all functional areas, performs core corporate activities and increases customer service augmenting Corporate Image‖
―Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform‖
―ERP is a cross function enterprise system which integrates internal business process and automates the process of activities of manufacturing, sales and distributions, finance and accounting, and human resource etc. It helps the organization to achieve the efficiency, agility and responsiveness which are required to face dynamic business environment‖

Development process
ERP system offers persistent business functionality; the application covers virtually all aspects of business functions. Understanding and managing their persistence will result in a business and productive business platform. Otherwise, the system we selected may be possible to failure are resulted a poor return on investment. Therefore, systematic process for developing ERP system is necessary for delivering results and managing the risks of implementation
ERP development process consists of key elements which form into series of steps. As a first step in the process it must identify the key personnel including supervisors, team leaders and empowered members. The responsibility of the project success mainly depends on these team members. Second step in the process of ERP developing is defining of business vision and objectives. The project team must articulate the vision and mission of the organization along with its identifiable critical objectives. To achieve maximum benefit from ERP system, the enterprise objective, goals, vision and mission must be encompasses and taken to consideration. The third step of ERP process is defining requirements to build an ERP system. The requirement and objectives of the organization should match each other because of every ERP system supports to the organizational goals and mission. Therefore, the requirement for building an ERP system is mandatory to all. Fourth stage of ERP development is very lengthy and plays key role in the process. It is simply developing and alternative of ERP system. There are three kind of alternative available to the ERP implementers that are integrated system, best of brand and custom development and feasible system. While selecting the best ERP system, there are three kind of decision should be taken by the selection team of ERP. That is, is it enough to develop; to develop an ERP system with an integrated system? If yes, lit can build with narrow choice, configure or extended configure adding and refined with evaluation. If no, look for another alternative, that is, is it functionalize properly? If yes, then select the best of brand ERP and standard ERP; otherwise look for tired alternative, that is, can it customized? If yes build a customized ERP system. It is to develop customized built in ERP system, otherwise the proposal of project will be withdrawn or loop for develop EPR requirements with added objectives and vision.

After identifying the best alternative of ERP system, the process continue to fifth step that is finalize the plans and implementation. It is import to make a smooth and deliberated transition to the implementation of developed ERP system.

Reason for growth of ERP
ERP is an important software related component of the organization to achieve their goals and objectives. IT improves the enterprises manufacturing process, customer orders process and revenue generation. That‘s why ERP is often referred as back office and front office software, because it is shot as a road map to the management in and outside of the organization. The ERP systems transforming the way organizations do business more effectively. Also this happens due to many reasons, some of them are
• Affects organizational activities
• ERP is change agent
• ERP helps to become more competitive
• ERP is a tool for BPR
• ERP enforces an organization‘s business process
The above reasons are most influence factors for the today‘s organization to attract towards
implementation of ERP system.

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