1. MOORE’S LAW
&
ERP
Presented By:-
Sudarshan Kumar Patel

2. Moore's Law
• The number of transistors per square inch on integrated circuits
had doubled every year since their invention (1958).
(Prediction - This trend will continue into the foreseeable future)
• New Definition –
The number of transistors per square inch has doubled
approximately every 18 months that is computing power doubles
every 18-months.
Source:- http://www.investopedia.com
 Co founder of the reputed INTEL
corporation who is basically a chemist
and physicist.
 The term “Moore’s law” was named
after him
 He published this article on 19th April
1965 in the electronic magazine.
Gordon E. Moore

3. Significant role of Moore’s law in the development of ERP
Three factors contributed to the development of ERP systems:
• Advancement of computer hardware and software
(Computing power, memory and communications)
• Development of a vision of integrated information systems
• Reengineering of companies to shift from a functional focus to a managerial focus
Using integrated software to manage all functional areas of a business seems obvious
today, but it was not technically feasible until the 1990s

4. Significant role of Moore’s law in the development of ERP
Three factors contributed to the development of ERP systems:
Moore’s law:- The number of transistors on a computer chip, and thus its power, doubled every 18 months.
• Computer hardware continues to get smaller, cheaper and faster
(This trend in computing power has continued to this day)
• The power of today’s computers has made the hardware required for ERP systems affordable
Advancement of computer hardware and software

5. Is Moore’s law still holding?
 Moore's law is not a natural law, it is an observation did by Gordon E. Moore.
• Doubling-of-transistors-on-a-chip
• Computing power doubles every
18-months relative to price.
 Although Moore’s law trend has continued for more than half a century
 The transistor count will double only after 3 years and not 18 months

6. Facts:-
Result:-
 This invention indicates that Moore’s law road doesn’t end.
 As long as the thirst for innovation is present Moore’s law trend will continue..
Is Moore’s law still holding?
Misconception:--
 Reduction of transistor gate length less than 22nm is not possible
New Invention:-
 Recently INTEL has reduced transistor gate length less than 22nm.

7. Characteristics of an ERP system
 Integration:-
• Seamless integration of all the information flowing through a company – financial and accounting, human
resource information, supply chain information, customer information and Projects ( costing, billing, time&
expense).
 Some Assembly Required:-
• Only the software is integrated, not the computing platform on which it runs. Most companies have great
difficulty integrating their enterprise software with a package of hardware, operating systems, database
management systems software, and telecommunications suited to their specific needs.
 Interfaces to legacy systems
 Third-party bolt-on applications
 Best of Breed Strategy

8. Cont…
 Evolving:-
• Enterprise Systems are changing rapidly
 Architecturally: Mainframe, Client/Server, Web-enabled, Object-oriented, Componentization
 Functionally : Front-office (i.e. sales management), supply chain (advanced planning and scheduling),
data warehousing, specialized vertical industry solutions, etc.
 Best Practices:-
• ERP vendors talk to many different businesses within a given industry as well as academics to determine the
best and most efficient way of accounting for various transactions and managing different processes. The
result is claimed to be “industry best practices”.
• The general consensus is that business process change adds considerably to the expense and risk of an
enterprise systems implementation. Some organisations rebel against the inflexibility of these imposed
business practices.

9. New Developments In ERP
• Availability of web based and wireless ERP systems
• Adoption of easy-to-install ERP systems
• Computer aided audit
• Automatic scan of every ledger and voucher
• Linkage to other software systems e.g.- SCM, E-commerce, customer relationship management system