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International Journal of Scientific & Engineering Research, Volume 7, Issue 4, April-2016ISSN 2229-5518782Enterprise resource Planning ERPAlmutairi, Mohammed Khalaf MAbstract: Information technologies are the revelation of this area. Companies should rely on the technologies to gettheir work done in isolation of the technologies. Enterprise Resource Planning systems are the most important softwarethat every company should have. This paper is exploring the Enterprise Resource Planning definition. Moreover, thispaper summarizes the most important advantages that Enterprise Resource Planning systems have to increase firms’productivity. At the end of the paper, there are three examples of the most common Enterprise Resource Planningsoftware in the market with a short description of it.—————————— —————————— IntroductionIn this era, the information technologyis an urgent need to manage any aspect inbusiness. It is the most efficient and economicalway for managing business. icate with the customers, efficiency ofoperations, and security. Many departments inany business need to adopt a software the helpsthem to demonstrate on the working process andlower the cost. In the operation section of thebusiness which is the most sensitive section totime and information comes the importance ofintegrating a software that helps production be asefficient as passible.Enterprise Resource Planning (ERP) isa software solution that gives manufacturers theopportunity to gather the information of theproduction in order to manage their productionprocess in the most efficient way possible. ERPis an optimal solution for managing theproduction data in a real time manner in order tohelp their businesses to grow. The softwareconnects the information between manydepartments in the plant in every process duringmanufacturing products such as the marketingdepartment and the operating department. Thatgives the managers the accurate information inthe optimum time in order to make the bestdecision based on the information.The most important element for anydecision is the the accuracy of the informationthat the decision maker gets. In addition, the timeof making the decision effects the decision. ERPgives the managers the two most importantelements that they need in order to make thesuitable decision. Enterprise Resource Planning(ERP) caters to the business tracing order,monitoring the the raw materials, and services.The most popular software for ERP is SAP. SAPis a European software that helps companiesmanage business operations and customerrelations.Information integration is a key conceptin Enterprise Resources Planning. ERP helps acompany to break down the information bycollecting,managinganddistributinginformation across functional departments in thecompany. As a result, ERP allows fullcooperation between production, materials,planning, engineering, finance and sales. To sumup, Enterprise Resource Planning systemcombines all the business departments into onecomponent. History of Enterprise Resource Planning(ERP)Enterprise Resource Planning evolvedfrom MRP II (Manufacturing ResourcesPlanning II), which was designed to manage aproduction plans and inventories. The ERPstarted in the middle of the last century. In the1990 which was the year of explosion intechnology growth. After that ERP became morewidely used by many large firms. Advantages of using an EnterpriseResource Planning (ERP)Using an Enterprise Resources Planningin a manufacturing company in any size hasmany advantages over other ways of managingthe manufacturing process. Save ��——About the Author:Mohammed Khalaf M Almutairi is a Saudi student at TheUniversity of Scranton in the United States specialized inBusiness Administration with a concentration inManagement information systems. His has B.S is inComputer Science from Al-Qassim University in SaudiArabia. He works at the Institution of Public administrationin Riyadh, Saudi Arabia as a faculty member. Mr.Almutairi has a strong background in programminglanguages and Information systems.Author: Almutairi, Mohammed Khalaf M38 Laurel Dr. Scranton, PA 18505 USAmr.mohd0@gmail.comJuly 5, 2015IJSER 2016http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 7, Issue 4, April-2016ISSN 2229-5518ERP system gives a company the ability tolink several program into a single system withrelevant software. That helps the company toreduce the machines and servers that arenecessary for each department to functionproperly. At the same time, ERP software helpsthe company reduce the number of workers ineach department because of the reduction of themachines and servers. On the other hand,information is a significantly critical tool thathelps achieve the company’s aim. A companythat uses ERP software will have organizedinformation that is important in any stage of thecompany to support better decisions. Therefore;receiving accurate information not only savesmoney, but also helps the company generatemore money by maximizing the company’sinvestment and controlling other cost Enhanced productivityStrategy is a way of runing a companyproperly. ERP software assists the company inmanaging its plant. Moreover; implementingERP software helps employees to complete thetasks without wasting valuable time. Theemployees have the ability to track a customer’sinteraction based on the information that theyreceived from the ERP program. For example, ifa company does not implement ERP software,the employee must deal with many programs,such as the inventory program and the customerinformation file. That consumes the employee’stime and effort to serve one customer. At thesame time, customer’s satisfaction will be lowerdue to the slow service. In addition, the strategicplanning will not be accurate because of the lackof information. Real time analysisThe biggest advantage of using the ERPsystem in a company is real time analysis. Realtime analysis in the ERP system gives acompany the ability to see all the activities atonce. It becomes more important when thecompany produces a high volume of products. Easy reportingThe ERP system allows a company to havecustomized reporting. ERP provides an easytechnique for generating reports. At the sametime, it gives better access to data that thecompany can generate and manipulate.data. Some data is not commonly used by all theemployees, and having the ability to see thosedata puts the company in an unsecure situation.ERP allows the company to keep customerinformation and company data safe and secure. Disadvantages of using an EnterpriseResource Planning (ERP)Despite the advantages that companies maygain from using ERP systems, there are manydisadvantages which the ERP systems have. The costIt is expensive to set up and use theEnterprise Planning software. Besides the cost ofbuying those kinds of software, there may beother costs that companies have to consider, suchas planning, customization, and testing. Forexample, SAP is one of the ERP software thathas a high cost. National Grid, which is a NewYork gas utility service, has been charged about 390 million in order to replace its oracle systemwith SAP software. The difficulty of useThe implementation of ERP systemsdoes not succeed until all users haveparticipated. The participation is veryimportant for the successful implementationof any ERP system project. As a result, thereis another cost called indirect cost, that acompany has to pay. Indirect cost couldcome from training and education.To sum up, there are few otherdisadvantage such as customization,payback, and the transferring of exiting data.At the same time, the advantage of usingERPsystemsareoutnumberthedisadvantages. In this era, using ERPsoftware in business is essential step notonly for new business to establishthemselves, but also for old businesses toconvert their works. Functional Areas of Enterprise ResourcePlanning (ERP)The ERP system covers many areas in abusiness. ERP systems support manydepartments in firms and help managerskeep track with the work in eachdepartment. The following departments areexamples of areas that ERP supports.1. Marketing and Sales department: ERPsystems could deal with many activitieswith which the marketing departmentdeals on a daily basis such as sales order,customer relationship, customer support,sales forecasting, and advertising.2. Production and Materials Managementdepartment: in this department, ERP couldIJSER Increase securityThe Enterprise Resources Planning systemimproves the data restrictions. By using the ERPsystem, a company has the ability to give theright employee the right privileges to accessIJSER 2016http://www.ijser.org783