![]() In 2019, 72% of businesses were using the Microsoft Windows Server operating system. It should be scalable and maintainable to meet future business needs.Īn ERP system runs on a software architecture. The technical architecture defines the layers of deployment between servers and desktops, interfaces and software objects. One of the primary hardware concerns facing many executives is acquiring the necessary state-of-the-art computer equipment for the ERP system. Organizations that decide to have their ERP system operate in-house will need to have a number of computers connected over a local area network (LAN) with one as the server where the ERP software and database is installed. The central feature of all ERP systems is a shared database that supports multiple functions, and that can be used by different departments, allowing them to work off of the same set of data. Hardware and infrastructure is the platform on which the software operates and provides the interface for user interaction. Using these models, ERP applications have been designed and built to integrate these processes into a centralized system that connects all the different aspects of the business. The SCOR model defines six main processes across the business that are necessary to meet the primary objective of fulfilling customer orders - Plan, Source, Make, Deliver, Return and Enable. The process for capturing, validating and reporting on general ledger information The process which ensures that the right materials are available at the right place, at the time, in the right quantity and quality, and at the right cost The procurement process, from requisitioning materials through to payment The order processing system, which includes processes involved in receiving and fulfilling customer orders Several standard high-level processes have been defined within the value chain framework. The value chain model showed how processes in an organization inter-relate. Michael Porter’s Value Chain described the high-level activities that all organizations perform to create value for customers. This makes it possible for businesses to use the capabilities of an ERP system. Whatever type of business, there are common processes. While an ERP solution delivers many benefits, executives need to be aware of the components, costs and other aspects required to operate and maintain an ERP application.Īlthough many companies believe they are unique, in fact there are many commonalities. The next step for their business software is an ERP (Enterprise Resource Planning) system. Many executives who dream of growing their companies at some time realize that spreadsheets and simple accounting packages won’t work for the business anymore.
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