Limitations of Enterprise Resource Planning (ERP) Systems

In today’s increasingly competitive world where the world is converging into a single market place, organizations are looking for ways to become globally competitive. Companies must be able to meet customer requirements in the shortest possible time faster than competition and this requires extensive production planning and close coordination between the company and it’s suppliers and customers. MRP (Materials Requirement Planning) was one of the most widely used systems for production planning but it’s main focus was only on managing the production requirements in an organization. MRP systems helped in time phase release of production orders and aggregating planning for material requirements.… Read the rest

Enterprise Resource Planning (ERP) Implementation

Introduction

Enterprise Resource Planning (ERP) is the process of integrating all the business functions and processes in an organization to achieve numerous benefits. First, a single point of data entry helps to reduce data redundancy while saving employee’s time in entering data, thereby reducing labor and overhead costs. Second, the centralization of information, decision-making, and control leads to increases in efficiencies of operations and productivity, as well as coordination between departments, divisions, regions, and even countries. This is especially true for multinational corporations (MNC), in which global integration could result in better communications and coordination around the world. The global sourcing and distribution of parts and services could also provide appropriate benchmarks for operations around the world. … Read the rest

Role of Technology in Modern Business

Technology has slowly and steadily seeped into all aspects of our lives, big or small. Business is no exception to this trend. In the age of information technology, computers and the internet have become as necessary to businesses as capital, in some cases even more so. Use of specialized hardware and software has made things quicker and less prone to errors, simple and repetitive tasks have been largely automated or will soon be short, communication has been revolutionized, and the rapidly lowering costs of technology are allowing small companies to compete with and outsmart larger corporations. These benefits have not come free of challenges, however.… Read the rest

Enterprise-Wide Computing – Meaning, Importance and Issues

Current breakthroughs in information technology have enabled the worldwide usage of distributed computing systems, leading to decentralize management of information. This has been supported by and has become inflamed great competition in business through faster and more precise data storage and retrieval and information processing. A number of organizations have accomplished high efficiency, comprising ease of use and lesser costs in operations by adopting a client/server computing structure. Furthermore, system integration and interoperability issues are being intensified as institutions and organizations are moving from mainframe based processes towards an open, distributed computing environment, and this situation is pressing corporations into an accelerated construction of extensive distributed systems for operational use.… Read the rest

What is Enterprise Architecture (EA)?

The Evolution of Enterprise Architecture (EA)

Enterprise Architecture evolution began as an idea in 1980 and was embodied in John Zachman’s early EA framework. Thus, informing the reference to John Zachman, as the father of EA. The evolution of Enterprise architecture was to address the increasing complexity of IT systems and difficulty of delivering business value using those systems.

Enterprise architecture is characterized by a framework that supports the alignment of business and IT strategy. It was first defined in 1992 by Zachman and Sowa, resulting in its reference as the Zachman framework. It was then referred to as Information System Architecture but later changed in reference, to enterprise architecture in 1996 when Clinger-Cohen Act of the U.S.… Read the rest

What is Enterprise Application Integration (EAI)?

Supply Chain Management (SCM) applications (for managing inventory and shipping), Customer Relationship Management (CRM) applications (for managing current and potential customers), Business Intelligence (BI) applications (for finding patterns from existing data from operations), and other types of applications (for managing data such as human resources data, health care, internal communications, etc) typically cannot communicate with one another in order to share data or business rules throughout a company. Enterprise Application Integration (EAI) is the process of linking such applications within a single organization together in order to simplify and automate business processes to the greatest extent possible, while at the same time avoiding having to make sweeping changes to the existing applications or data structures.… Read the rest