The Growing Interest In Enterprise Resource Planning (ERP)

The Growing Interest In Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP)

The fact that large enterprises today have the ability to seamlessly move data all the way from manufacturing to human resources, and everywhere in between, is largely due to one of the greatest success stories in linking/ integrating cross-functions within companies: Enterprise Resource Planning (ERP) Systems. But as with many effective systems, ERP is not without its share of weaknesses.Back in the 1970’s, before commercial Internet and web-based communications, ERP made its entrance into the business world. At that time, vendors were still laboriously hand-keying, sending and receiving information on paper via internal systems. When the 1980’s rolled around, outward communications between manufacturers and trading partners was done through electronic data interchange (EDI) systems, requiring extensive testing to ensure security and integration viability to avoid risks.

With the speed that the market changes today, this approach is not only extremely difficult, but virtually impossible, and so it became natural for companies to look to their trusty ERP systems for assistance with their outside communication requirements.

Sadly, ERP is unable to deliver in the area of outside communications between manufacturers and vendors. Simply put, ERP was designed to excel at integrating everyone internally but did not address the need to communicate with the outside world.

Regions of the World

Most enterprises have had to look beyond their ERP system and search elsewhere for a solution to their outside communication needs. Many enterprises have chosen to use cloud-based providers to provide that solution, and open up a whole new world full of trading partners from all regions of the world.

Getting on board of a cloud-based system can be achieved in as little as a couple of weeks and in some cases several days. An enterprise can move into a prime position to exchange invoices, bills of lading, purchase orders and the like on a daily basis in a very short time.

For companies still using EDI systems to exchange information and documents, there are very real security concerns, requiring each business to deny trading partners and suppliers access to their ERP systems, making it cumbersome and limiting.

Information and data flows in from cloud-based and EDI systems to ERP via a secure application programming interface (API) directly to ERP and is controlled and managed by corporate IT.

The process appears to work well. The large number of enterprises that are considering, and those that have already done so, enhancing their ERP system with external systems to communicate with the world is proof positive.

The upshot of all of this for IT is that enterprises have found a way to run effective systems like ERP without trying to convert these systems to do what they were never intended to do.

It wasn’t too long ago that someone would try and find a way to convert an ERP system into one that would handle the outside processes of a business. Fortunately the ERP systems have maintained their integrity so businesses can they can be integrated with solutions to handle the need for communication with the outside world.

By Sam Michaels,

Sam is the managing editor and creator of Cloud Accounting Today. He holds a MS in Accounting and has over 10 years of experience in the field. He currently resides in Northern Virginia.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

Sorry, comments are closed for this post.

The Education Revolution: Cloud In The Classroom

The Education Revolution: Cloud In The Classroom

The Education Revolution: Cloud In The Classroom With the back-to-school season now upon us, parents, students and teachers everywhere are once again struggling with the perpetual challenge of making kids job-ready in a high-speed and fast-changing environment. There is little doubt in anyone’s mind that information technology plays a central role in all areas of life…

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM From software deployment, to mobility, to wearable technology, cloud computing has transformed seemingly every aspect of modern business. Research indicates cloud applications and platforms will be at the forefront of IT spending by 2016, with half of all enterprises implementing cloud solutions by 2017. One of the quickest markets…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

Cloud Infographic – Cyber Security And The New Frontier

Cloud Infographic – Cyber Security And The New Frontier

Cyber Security: The New Frontier The security environment of the 21st century is constantly evolving, and it’s difficult to predict where the next threats and dangers will come from. But one thing is clear: the ever-expanding frontier of digital space will continue to present firms and governments with security challenges. From politically-motivated Denial-of-Service attacks to…

Cloud Computing and Social Networks

Cloud Computing and Social Networks

Pushing Innovation With Social Networks There was a time when storage space was a precious commodity. A few videos and photographs and the system would be gasping for breath in old PCs’ limited storage space. 10 Years ago, today’s top social networking sites would have broken down under the burden of the heavily visual traffic…

CONNECT TO THE CLOUD

 

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Branded Content Programs

Advertising