Strategy for Implementing ERP that Benefits You

Enterprise Resource Planning (ERP) is software solution that Information Technology has lent to the world of business application. ERP seeks to streamline and integrate operations, processes and information flows in an enterprise.

Most organizations across the globe have realized that in the current fast changing business environment, it's impossible to create and maintain a custom designed software package which will take care of all of their requirement and be up-to-date at the same time. By realizing these, organizations and companies have used ERP softwares which offer an integrated solution to all their functional processes.

Although the initial stage of ERP originated in the manufacturing environment, now ERP software solutions typically cover all basic business process/functions of any organization, regardless of the organization's business. A typical ERP module include: Manufacturing, Supply Chain, Financials, Customer Relationship Management (CRM), Human Resources, Warehouse Management and Decision Support System, etc.. All functional departments in an enterprise that are involved in operations or production can be integrated in one single system.

The key to understand ERP software is to think of it as an "integration."

Does an Enterprise Need ERP Software?

Success does not have a measurement. And a company doesn't need ERP software to be successful. However, ERP can improve process which can lead to cost saving and increased profit margin. To successfully implement an ERP into an enterprise, the enterprise must understand why it needs one and how it will use such the system to improve its operations.

The Benefits

ERP systems are meant to improve internal processes by automating the workflow by reducing the time and the resources. In integrates in different areas making it efficient for keeping and retrieving data. ERP also increases visibility of order fulfillment process and reduce work-in-progress inventory and finished goods inventory. Managing employees and client database are made a lot easier with ERP.

Overall, ERP systems are used to streamline the flow of data, protecting it, and creating an environment where businesses can operate at a better pace.

The Drawbacks

Most ERP softwares are expensive, both to have and maintain. The time to tailor the ERP for a business, and the time and cost to train employees require considerable resources. Having a fully integrated ERP system within a company is like an investment.

Implementing an ERP is not an easy task. Most ERP requires about 18 to 24 months for a successful implementation. The long time frame accounts for a necessary phasing of the software across the enterprise because an immediate switch in all levels of the organization has the potential to create disastrous results.

If a company can afford the challenge and resources, ERP will benefit them in return in the future.

ERP Implementation

If a business considers to use ERP to organize their workflow, ERP will bring out the deficiencies of the existing system and attempts to maximize productivity through restructuring the human resources within the workflow.

ERP software depends heavily on its end users. It's advisable that a company gradually introduces the software, department by department. This will allow for the system to be worked out in small chunks rather than opening the probability of failures.

And since training is the most important part of a successful ERP implementation, gradually stepping the business into the system also provides the opportunity for the first sets of end users to gain expertise and help train new users, thereby reducing the strain on IT professionals and consultants during the latter stages of implementation.

ERP software solutions have the ability to make a business more profitable as it allows automation of most of the functional business processes across the enterprise. Knowing this fact, ERP software solutions are popular for businesses to streamline their operations, making it more productive.