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Enterprise Resource Planning commonly referred to as ERP system is a decision making tool used by managers to provide a throughput visualization of the entire organization’s programme. Some researchers have listed the implications of applications of ERP systems in an organization by determining the benefits and disadvantages that come with it. Some consider it a very risk line of operation for organizations of all magnitudes and scalability (Stanciu & Tinca, 2013). According to renowned researchers, ERP systems are information system packages that incorporate all business operations into a single application. The same applications can be collected into one all inclusive mega application for rendering of all the services and resources in on platform.
In line of reviewing the scholarly studies related to categorization of CFS in ERP systems studies have shown that many factors contribute to the success of their implementations and categorization (Stanciu & Tinca, 2013).. The current business environments have proven to be able create a good system for development of ERP systems foe organizations with an aim of increasing their visibility and collaboration amongst themselves. It is for this reason that I decided to dig in to find the history ERP systems and CFS.
The whole idea was curved by Gartner in 1990, who described ERP a new system of establishing resource planning domain. He argued that the system would be based on strategizing of resources and accuracy of records with the objective of improving peoples’ knowledge of the organization beyond its environs i.e. to sell out the company’s name to new customers while retaining the existing customer base (Jacobs & Weston, 2007; Thakur, 2016). It is however important to note the applications leading to its development were initially reported in early 1960s when organizations established systems to follow up on their inventory records (Jacobs & Weston, 2007; Thakur, 2016). This led to the inception of Materials Requirements Planning (MRP) in the 1970s (Egdair, Rajemi, & Nadarajan, 2015; Jacobs & Weston, 2007; Singh & Nagpal, 2014).. This was aimed at enabling manufactures to buy, predict and pre-determine production resulting to the establishment of first manufacturing companies in the industry like J.D Edwards. The company then improved their operational services and included it in the new system dubbed MRP-II (Bento, Bento, & Bento, 2015). Due to technological advancements coming to the end of 1980 ERP vendors such as IBM, SAP, J.D Edwards and Oracle (Palanisamy, Verville, & Taskin, 2015) had established themselves as the main ERP vendors in major industries and would later act as pacesetters for all the other system vendors (Banerjee, 2015).
The gradual change has come to reach its greater heights with the introduction of cloud computing thus enabling large files storage in the network while at the same granting accessibility and operation of applications and websites over the system (Solutions, 2016). It cuts the amount of IT requirements by firms through shifting of all its physical components to extend its ERP system from the business environs to a site hosted by a vendor (Solutions, 2016). A report carried out by Panorama consultants in 2016 showed that 215 of business operators using ERP, 40% of them preferred the use cloud computing compared to the previous years (Solutions, 2016).
With the aim of reducing industrial wastes organizations introduced Lean initiatives which also incorporated into the ERP system. In an effort to maintain data process flow, experts have been to delve on Sustainable Enterprise Resource Planning as the next stage ERP system to follow its predecessors with the aim of maintaining constant data stream during access by a user (De Soete, 2016). The aspect of sustainable development is brought a term used to describe as development that satisfies immediate needs of a group with a guarantee of self-reliance in the future (De Soete, 2016). Companies using S-ERP to help preserve their files and follow up on them sequentially
Various studies have been carried out to understand the viability of S-ERP systems with a good example involving a global food company that introduced carbon emission tracking in its ERP system across all its franchise around the world (De Soete, 2016). This helped to uphold the company’s main objective of avoiding environmental conditions (De Soete, 2016). The relationship between the key factors of success go hand in hand with the level of ERP system used by the organization because by increasing its visibility it is also necessary to showcase the company’s principles, objectives, authenticity and mission on the said available system
For capital oriented organizations the traditional principles of ERP systems still applies however in S-ERP the general functionalities are taken care of in the organization within the Triple Bottom Line business approach being put into place (Chofreh et al., 2016). This act results to involvement all organizations stakeholders being involved in its operations. The main focus of the new ERP system that is, the S-ERP is to guarantee all the three pillars of an organization (Chofreh et al., 2016). The three pillars are people which are the stakeholders of the business, profits which are the proceeds a business makes for its operations and environmental pollution which should be stopped by any operating business entity (Ahmad & Mehmood, 2015; Gianni, Gotzamani, & Tsiotras, 2017).
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De Soete, W. (2016). Towards a multidisciplinary approach on creating value: Sustainability through the supply chain and ERP systems. Systems, 4(1), 16-26. doi:10.3390/systems4010016
Egdair, I. M., Rajemi, M. F., & Nadarajan, S. (2015). Technology factors, ERP system and organization performance in developing countries. International Journal of Supply Chain Management, 4(4), 82-89. Retrieved from http://ojs.excelingtech.co.uk/index.php/IJSCM
Palanisamy, R., Verville, J., & Taskin, N. (2015). The critical success factors (CSFs) for enterprise software contract negotiations. Journal of Enterprise Information Management, 28(1), 34-59. doi:10.1108/jeim-12-2013-0083
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