Enterprise resource planning Literature review Example | Topics and Well Written Essays - 3000 words

Enterprise resource planning - Literature review ExampleTaking into account all the necessary precautions described in this review, readers push aside develop an accurate and effective ability to choose the correct ERP to fulfil their companys needs. Enterprise option Planning The development of Enterprise Resource Planning (ERP) packages has evolved the software market in the most valuable segments of modern formations. They have transformed over the past decade, every aspect of organisational process including sales, marketing, manufacturing and staffing. The first of all ERP organizations that emerged were very expensive for small and medium companies and also required complex processes and maintenance to incorporate them. The detrimental effect that ERPs possess over the entire organization is deemed important for the development and prosperity of a business (Livermore & Ragowsky, 2002). As, such a combination of human and technical expertise is required in order to exercise a correct selection of vendor, implement the system accordingly and provide adequate support and maintenance. The instances of companies going bankrupt due to implement failure of an ERP system include prestigious firms, such as Mobil Europe, Nike, Reebok and Hershey. The continuous failures of the ERP system have raised the question of their viability and the risks involved with incorporating such practices (Chen, 2001). Based on available belles-lettres and real-life examples, this review will analyse the tasks needed in order to choose the correct ERP system, the implications that need to be considered, important procedures needed for implementation and future directions for question are proposed. History of ERP The predecessors of modern ERPs were made in the 1960s with the manufacturing of early Material Requirements Planning (MRP) software by the partnership of J.I. Case with IBM.. However these solutions were grand and expensive because they required a large technical sta ff to support the mainframe computers. In 1970s the development of faster and higher capacity repositing enabled the development of a more integrated business information system. The introduction of COPICS concepts for IBM computers and subsequent birth of software companies such as SAP (Systemanalyse und Programmentwicklung) and Oracle among others, remove to increased technological advancements in MRPs. Its functions include scheduling and releasing manufacturing work orders and purchase orders (Chen, 2001). The MRP II system was created in the early 1980s by J.D Edwards was later named manufacturing resource planning rather than its original acronym and adopted the MRP-II term to conjoin with the newer capabilities, such as integrating primary functions (production, marketing and finance) and personnel and engineering to cleanse the efficacy of the enterprise. During the late 80s the update of CIM (Computer Integrated Manufacturing) framework offered a strategy to help integr ate information in a pursuant(predicate) manner across the enterprise, which was the key to the migrating path between MRP and ERP systems (Chung & Snyder, 2000). The term enterprise resource planning (ERP) was named in the early 1990s by the Gartner Group and included certain criteria to asses the extent of integration across many functional areas such as production from raw materials to work-in-process (WIP) to finished goods inventory (FGI), shipping and receiving