Friday, January 11, 2008

ERP

ERP Systems we are talking here. Agency Management System is part of any ERP System. Today we are going to talk about before and after concept of ERP.

Before the concept of ERP System
Prior to the concept ERP systems, departments within an organization (for example, the human resources (HR) department, the payroll department, and the financials department) would have their own computer systems. The HR computer system (often called HRMS or HRIS) would typically contain information on the department, reporting structure, and personal details of employees. The payroll department would typically calculate and store paycheck information. The financials department would typically store financial transactions for the organization. Each system would have to rely on a set of common data to communicate with each other.


For the HRIS to send salary information to the payroll system, an employee number would need to be assigned and remain static between the two systems to accurately identify an employee. The financials system was not interested in the employee-level data, but only in the payouts made by the payroll systems, such as the tax payments to various authorities, payments for employee benefits to providers, and so on. This provided complications. For instance, a person could not be paid in the payroll system without an employee number.

After
ERP software, among other things, combined the data of formerly separate applications. This made the worry of keeping numbers in synchronization across multiple systems disappear. It standardised and reduced the number of software specialties required within larger organizations.



ref: Agency Management System, wikipedia

3 comments:

Unknown said...

Hello,
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Unknown said...

Hi,
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Tee Chess said...

sap erp system
I am curious to know about ERP and the difference between SAP and ERP. This article is worth reading as you have posted a rich detail about ERP and how it came into existence.