About ERP Software
Enterprise Resource Planning (ERP) software is business enterprise software packages or solutions that integrate key business processes and functional areas such as manufacturing, finance, human resources, sales and marketing, inventory, production planning and distribution. With the widespread adoption of large computer systems and networks in the 1990s, enterprises, businesses and small and medium firms stared to deploy ERP software to integrate disparate business operations and make core enterprise applications available to users. ERP software has evolved with the recent use and adoption of web-based technologies.
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Application Across Sectors
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ERP software, which traditionally was used in the manufacturing sector, is now deployed across a host of industries and verticals. Vendors now manufacture and sell software configured for the specific and unique requirements, issues and challenges of various sectors and look to address the technology transformation of business. New tools are available to help organizations further tweak and customize the core ERP modules and help businesses gain greater insight into operations, systems, networks and applications.
The Business Premise
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The top management executives, CIO and the IT team of an organization or business weigh the business premise of deploying a particular ERP software solution. Challenges could include phasing out of legacy systems, business growth parameters, organizational location dynamics, rapid development of core enterprise applications and information sharing across borders. Applications deployed over a common network need to be easily accessible for employees across various hierarchical levels. The evaluation criteria to deploy a relevant ERP software solution has to account for the strategic business premise as well as overall business performance and return on investment (ROI).
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Transition Period Issues
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Deploying packaged ERP or a one-size-fit ERP software solution for any sector or industry domain is not the panacea to solving complex IT issues and business challenges. The transition period of shifting from the legacy IT infrastructure to the new integrated environment can be ridden with pain points and other teething issues and has to be handled carefully. The period involves a number of training and development programs, employee hand-holding, change management initiatives, project management, implementation specifications and execution milestones.
Business Benefits
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A successful deployment of ERP software does translate into all-round business benefits. Businesses are able to get greater insights into operational activities, decision makers have easy and on-demand access to critical business information and MIS reports and IT executives are able to centrally monitor the IT infrastructure and address key issues related to information sharing and accessibility. Greater business process integration helps companies to be more nimble, competitive and productive.
Key Players
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There has been a recent period of consolidation in the ERP vendor and software manufacturer landscape. U.S. ERP giant Oracle, with its recent acquisition of ERP software major player PeopleSoft, has consolidated its market share. Germany-headquartered SAP AG is Oracle's biggest rival and both players jostle for market share in the lucrative North American marketplace. Other important players addressing select international markets, regional markets and small and medium enterprises include Microsoft Dynamics, Infor, Autodesk, SYSPRO and SAS.
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