Seeing today’s fast paced life, nobody wants to get into complicated tasks. The focus is on time management and accessing what you want on time and with complete ease. One need to make the best out of the available resources and what can be better than using the latest technology, which saves on time and efforts. Let me introduce you to one of the latest software in the industry which is cost effective and integrates all the facets of the business. Yes its true, ERP is what it is commonly known as.
Enterprise Resource Planning or ERP; whatever name you may call it by, is a system that integrates different data and processes of an organization into one unified system. In simple terms, ERP software package provides Payroll as well as Accounting functions. ERP is one step ahead of the software named Manufacturing Resource Planning (MRP II).
Integration of multiple system modules into single unified database is the key feature of ERP. ERP module can also work as a controller of the various business activities namely sales, marketing, delivery, billing, production, inventory management, quality management, human resources management and other related activities.
A layman cannot operate ERP software; you need to seek the help of an ERP vendor or third-party consulting companies. Consulting in ERP consists of three levels - top level systems architecture, business process consulting or re-engineering and technical consulting (primarily programming and tool configuration activity). System’s architect is into designing the overall data flow for the enterprise including the future data flow plan. On the other end, a business consultant studies current business processes of the organisation and matches them to the corresponding processes in the ERP system, thus 'configuring' the ERP system as per the needs of the organisation. Technical consulting involves programming. Most of the ERP vendors make modification in their software to accommodate with the business needs of their customer to the best.
Advantages attached to the ERPs are that it includes computer security to protect against both outsider crime and insider crime. It integrates various systems of the organization and targets comprehensiveness and effectiveness of the whole.
Each coin has two sides and the same holds true for ERP. Though, there are various benefits attached with ERP but you also need to know about its limitations, so that you can derive best out of it. Facts that need to be kept in consideration are that installation of ERP software involves investment of huge funds; its customization is limited as it may involve changing of the ERP software structure which is usually not allowed and following the standards prescribed by the ERP system may lead to competitive advantage loss.
Before implementing ERP system ensure that whether you want to go for customizing the software or modifying your business processes to make the best out of it. All relies on your decision that whether implementing ERP is a bane or boom for your business.
Sally Thompson has been writing articles for many years. She is a Commerce graduate and has done her post graduation in Journalism and Corporate Communication.
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