ERP Brief Summary
ERP is kind of decision making process.
Actually ERP is developed from MRP(Manufacturing resource planning).
ERP is different from MIS(management Information System) because MIS is department and function centric but ERP is integrated and process focused tool.
ERP is an enabler for BPR(Business process reengineering)*
When it comes to set-up ERP, the mind of CEO is very crucial as it is top-down way, not bottom-up way. And CSF for ERP is customization, but you have to minimize customization since the reason why sey-up ERP is for innovation through benchmarking best practice. Thus ERP pursuits radical innovation rather than progressive & gradual changes.
Thru ERP you can generate real time integrated data base and it takes minimum 3 months and average 6~9 month to set-up.
Currently, ERP tends to be linked to CRM or SCM system (that is called as ERP II, new ERP or extended ERP)
If ERP(SAP which is most preferred ERP software, developed in Germany etc) is linked to SCM or CRM, SFA(Premiere or salesforce.com etc), it is very strong business tool as you can see P&L, resources, sales, DSO, inventory status, ROI and customer DB in real time.
* Foot note:
BPR- Business process reengineering: Key word in BPR is [As-is --> To-be (CSF/KPI)]
* Source: 알기쉬운 ERP/신철 지음/미래와 경영/2002년
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