CIOReview
| | AUGUST 20238CIOReviewIN MY OPINIONWhat is an ERP? Well ERP is stands for Enterprise Resource Planning. ERP is a software system designed to integrate and manage various business processes within an organization. It provides a centralized platform for companies to streamline operations, improve efficiency, and enhance decision-making. ERP can be considered as complete and important integrated business system that is recommended to be implemented in every organization from small, medium up to enterprise level. ERP is also considered as an important and recommended management information system that integrates flow and process of production, planning, inventory, sales, marketing, human resources, purchasing and the last part is finance and accounting. Now let's head back to see the history of ERP and the evolution itself, as follows 1960s-1980s (MRP & MRP version 2)Material Requirement Planning or so call MRP appear in the 1960s as method to manage manufacturing process and inventory control. It is strictly focused on calculating material requirements based on production schedules. Then in the 1980s MRP developed into Manufacturing Requirement Planning or we call it MRP version 2 and involved more functions such as capacity planning, scheduling, and financial management. 1990s (First ERP System) The pronouncement of "Enterprise Resource Planning" was coined in the early 1990s to describe software systems that integrated with various organizational functions. The first ERP systems were developed by software companies like SAP, Oracle, and Baan, offering modules to manage different areas such as finance, human resources, manufacturing, and distribution.1990s-2000s (Expansion and Integration)Early 1990s are the time where a lot companies started adopting ERP systems as it gained more popularity and was also based on comprehensive benefits and features. ERP systems began to expand and started to include additional modules like customer relationship management (CRM), supply chain management (SCM), and business intelligence (BI), providing end-to-end solutions for organizations. To further enhance their capabilities, ERP systems also started integrating other technologies such as e-commerce platforms and internet. This was also the time when all ERP systems were still installed on local server (on-premises) at every server room on each organizations.CloudShort brief about Cloud itself, Cloud or as we used to call, Cloud computing refers to the delivery of computing services over the internet on a pay-per-use basis. Instead of relying on local infrastructure and servers, cloud computing allows users to access and utilize computing resources, such as storage, processing power, and software applications, from remote data centers.Cloud computing provides several advantages over traditional, on-premises infrastructure. 1. Cloud provides scalability and allowing organizations to easily scale up or down their computing resources based on demand. This flexibility is particularly beneficial for businesses with fluctuating resource needs. 2. Cloud computing eliminates the need for upfront infrastructure investments and reduces maintenance costs since the responsibility for managing hardware and software infrastructure lies with the cloud service provider.3. It enables remote access to data and applications, facilitating collaboration and mobility.4. It also provides us with instituted multiple redundancies to make sure that if something went bad then we still had a backup as ERP, CLOUD COMPUTING AND DIGITAL TRANSFORMATIONBy Reinier Josias Marlissa, IT General Manager, Ateria GroupReinier Josias Marlissa
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