ERP IT, Part II Group Micro #2 have consisted of a single Computer Operator, who might be storing data on magnetic tape, and then putting it away in a box –perhaps then keeping the box down in the basement. In contrast, the modern Information Technology Department uses computers, servers, database management systems, and cryptography in order to perform the complex functions required of information technology departments today. The departments consist of System Administrators, Database Administrators, and at least one Information Technology Manager. The department is almost always under the authority of the CIO, or Chief Information Officer.  

ERP Software

ERP IT, Part II

Difficulty in getting accurate data and timely information has been identified as the hurdles in the growth of any business. Over and over, depending upon the speed of the growing business needs, certain applications or planning systems have been introduced into the business world for crossing these hurdles and to achieve the desired growth. They are: Management Information Systems (MIS); Integrated Information Systems (IIS); Enterprise Wide Systems (EWS); Material Resource Planning (MRP); and Manufacturing Resource Planning (MRP II).

Enterprise Resource Planning is the latest high end solution that information technology has lent to business applications. ERP software solutions attempt to streamline and integrate a company’s operation processes and information flows in order to synergize the resources of a business, which are: men, material, money, and machine through information.

ERP IT has many features that help a business perform better. ERP facilitates company-wide Integrated Information Systems that handle functional areas like Manufacturing, Selling, Distribution, Payables, Receivables, Inventory, Accounts, Human resources, and Purchases. ERP can bridge the information gap across an entire company. ERP is the center of a complete integration of Systems not only across company departments, but also across companies under the same management that are not in the same geographical location. ERP does away with many business problems, such as: Material shortages, Productivity enhancements, Customer service, Cash Management, Inventory problems, Quality problems, Prompt delivery, etc.  ERP has the benefit of not only managing a business’ current requirements, but of also providing businesses an opportunity to continually improve and refine business processes. And, ERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining, and Early Warning Systems that enable business leaders to make better decisions, thereby making the business better.

 Initially, installing ERP packages was possible only for very large National and Multi-National Companies. The price and complexity of these software systems tended to put ERP as a tool out of reach of small to medium businesses. In the past twenty years, however, that fact has drastically changed.

Leading family business expert Don Schwerzler has been studying and advising family business entrepreneurs for almost fifty years. Mr. Schwerzler is also the founder of the Family Business Institute and the Family Business Experts –a web organization. According to him, ERP is a viable, profitable software system that can –and should- be incorporated into the IT departments of even the smallest, family-run businesses. Recently, at a workshop for family business owners considering an ERP system for their family business, other ERP experts addressed the question “What is ERP” in terms of the

Continued in ERP IT Part III

Written by :

Don Cooper