Enterprise Resource Planning is a software that is commonly used in finance and commonly in business management (Nah, 2001). This software comprises several integrated applications that work from a central database and a common platform. Several companies and institutions use software to utilize their resources to the maximum effect and facilitate information flow among the employee and the stakeholders within the business. In general, enterprise resource planning is a set of activities that a particular business may adopt to help them manage their significant operations within the business effectively. Enterprise resource planning is the fundamental performance indicator that helps the business or organizations meet their corporate responsibilities (Wagner & Monk, 2008). This ERP system has several software applications that are vital in managing inventories and products within the business and provides services to the clients, track orders, and play a big role in enhancing effective interactions with the supplier of the business or a company. Human resources department has also adopted ERP system to ensure that employee relates with each other effectively and making sure that the resources of the company are used to the maximum.
Analysis of an ERP Software
For a particular business enterprise to add value to its clients and employee, it should see what is going on in the business as it happens (Kurbel, 2013). In doing so, the enterprises can ensure that it organizes its work to the need of its employee and its employer to the extent that will satisfy them. An ERP software behaves like a firm operational backbone whereby it helps a specific enterprise control its production and distribution functions. The majority of enterprises that use this system have been able to enhance their production volumes, which has attributed to the fulfillment of their order requests and moderate their operating costs effectively. In this regard, the application of ERP software enables them to optimize their production and distribution processes.
Therefore, this becomes possible for businesses to pay more of their attention to emerging business opportunities. This implies that, for a company to be essential to the clients and employer, it should be in a position to monitor what is happening in the business as it occurs. A conclusion can be drawn from this study that ERP software is very effective in a business platform since the system helps improve their effectiveness, competitiveness, success, and the satisfaction of the customer needs. Therefore, various businesses should ensure that ERP software is always consistent with the company’s processes. This effort adds a significant impact on their customers and the society as well.
Enterprise Resource Planning Software Tiers
The Enterprise Resource Planning software is categorized in various ways, such as Tier-1, Tier-2, Tier-3, Tier-4, Tier-5, ERP-II, component-based ERP, Accounting ERP, Marketing ERP (Davis, 2011). The classification of this software is based on the customers’ organization and the functionalities of several ERP resources. Several vendor websites have described these organizations of ERP software earlier, although in pieces. Within the industry of software and technology, particularly in the entries resource planning segments, schemes which have been used in the classification of the software as well as software vendors have occurred continuously. The common has remained to be the classification of and also their solutions into Tiers. Most people should have heard of first, second, and third-tier vendor systems, with huge well-founded suppliers at the highest position as tier minute usually niche and also newer suppliers at the lowest rank on both the second and third vendors. Therefore, this vast organization scheme is most probably the distinct oft-used system for the classification of enterprise resource planning software offerings.
In current years, factors such as the advancement of technology and globalization imply that the traditional ways of classifying the ERP software is being challenged and is becoming less significant to software buyers as well as to software vendors (Wagner & Monk, 2008). In this discussion, it is important to consider the the division of ERP vendors regarding different Tiers and how concept of tiers has transformed over time. Aditoonally, it is important to consider the shifts and changes that have taken place in the software marketplace regarding the incorporation of new technologies such as the cloud into solution offerings. Descriptions of software vendor tiers have been traditionally grounded financial and size factors inherent to the customer. The description of technology tiers differs a little from source to source. However, the shortlist which is associated with the tier 1 ERP vendors is usually easy to recognize. This implies that the Tier 1 vendors are associated with what is referred to as the “big guys” in a particular enterprise or a company, familiar with the details in the company software.
The application of two-tier ERP software in businesses or organizations enables them to operate like two enterprise resource planning systems simultaneously. In doing so, one of them at the corporate level while the other operates at the division or in the subsidiary degree. For instance, businesses could employ ERP software to manage work within the business using a self-reliance regional or global distribution, sales, or production centre together with the service provider to aid the critical business’ customers. Having in mind the reality of globalization, businesses persist in evaluating how to optimize their global, product or manufacturing methods to support strategic objectives plus lowering the time-to-market, whereas on the other hand, increase the returns and the value of delivering. The application of two-tier enterprise resource planning in the business, the regional extent, and service providers persists in operating below their self-enterprises model separately with the leading enterprise. However, the application of the two-tier ERP software has various impacts on the business. Some of these factors are that extra effort is essential, especially where data is needed to pass between the two ERP software. Additionally, considering manufacturing globalization, sourcing economics is another factor in the emerging economies.
In conclusion, enterprise resource planning (ERP) is a software that is commonly used in high-level management. This paper establishes that software incorporates several integrated applications that work from a central database as well as a common platform. Several companies and institutions use software to utilize their resources to the maximum effect and to facilitate the flow of information among the employee and the stakeholders within the business. Many companies that use this system have improved their productivity in terms of volumes hence making them satisfy their order requests while minimizing operating costs. ERP systems facilitate businesses to optimize their manufacturing and distribution activities; therefore, it becomes possible for companies and enterprises to focus on emerging investment opportunities. The Enterprise Resource Planning software is categorized in various ways, such as Tier-2, Tier-1, Tier-5, Tier-3, ERP-II, Tier-4 component-based ERP, Accounting ERP, Marketing ERP. The classification of this software is based on the customers’ organization and the functionalities of several ERP resources. Therefore, the application of enterprise resource planning software in any business enterprise is essential since companies can utilize the resource they have to the maximum, thus increasing the productivity of the company.
Davis, A. (2011). Enterprise resource planning under open source software. Enterprise Information Systems, 776-794. https://doi.org/10.4018/978-1-61692-852-0.ch314
Kurbel, K. E. (2013). Enterprise resource planning and supply chain management: Functions, business processes and software for manufacturing companies. Springer Science & Business Media.
Nah, F. (2001). Enterprise resource planning: Solutions and management: Solutions and management. IGI Global.
Wagner, B., & Monk, E. (2008). Enterprise resource planning. Cengage Learning.
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