ERP (enterprise resource planning) is considered to be an integrated business solution package that is instrumental in providing business support tools for achieving and maintaining business solutions. The ERP process is never-ending process which is not merely concerned with planning, implementing and coordinating business efforts but also extends to constant reviewing, and updating plans to meet the changing needs of the business organization.
There are many reasons, which make an organization opt for an ERP system. An ERP system is an effective tool in achieving the business objectives with a high level of efficiency. It is also beneficial in enhancing the levels of productivity and employee motivation and lowering paperwork and human efforts and is thus, an effective business package designed to satisfy the requirements of the business.
The ERP process extends to the entire organization, as a whole. It is concerned with harmonizing the efforts of various departments such as accounting, sales, inventory, procurement, logistics and supply chain management. An ERP process may be implemented by a business organization for the following reasons:
Strategic planning: The organization must make a detailed strategic planning according to the system capabilities and the business requirements. Unless there is equilibrium between the two, the ERP system would not be able to achieve the predefined objectives of the business. There must be a thorough study on the pros and cons of the ERP system. The high level management must also be an active party in the planning process.
Readiness assessment: The organization and the prospective users of the ERP system must not be reluctant to implement an ERP system. It is the responsibility of the management to make sure that the benefits of the system are conveyed to the users in an effective manner.
Selection of ERP vendor and third-party consulting organization: This is considered to be an important step, as the selection of the ERP vendor is an important factor in determining the system success and effective implementation. Normally, the third-party consulting organizations are the ones who implement the ERP system and they must also be properly viewed and then selected.
Training and education: The management must take all necessary steps to insure that the users of the ERP system are given the information regarding its usage and benefits in the most precise, clear and effective manner.
Implementation and coordination: Once planning is done, there is a need of effective implementation of the ERP system throughout the organization. There must be harmony and coordination in the business efforts.
Reviewing and post implementation assessment: The task of the management and technical staff also extends to reviewing at regular intervals the benefits, usage and implementation. This is done to ensure that the system is conducive to the changing business needs.
Thus, it can be rightly said that an ERP process is a comprehensive process, which involves effective decision-making and effective implementation. And for the success of any ERP system and achievement of business objectives, the management and the users must be intimately involved for the best results.
There are many reasons, which make an organization opt for an ERP system. An ERP system is an effective tool in achieving the business objectives with a high level of efficiency. It is also beneficial in enhancing the levels of productivity and employee motivation and lowering paperwork and human efforts and is thus, an effective business package designed to satisfy the requirements of the business.
The ERP process extends to the entire organization, as a whole. It is concerned with harmonizing the efforts of various departments such as accounting, sales, inventory, procurement, logistics and supply chain management. An ERP process may be implemented by a business organization for the following reasons:
- When the organization is witnessing fast uncontrolled growth.
- Unexplainable rise in operating costs.
- Lower inventory levels than expected.
- Duplication of human efforts.
- Failure of the existing system.
Strategic planning: The organization must make a detailed strategic planning according to the system capabilities and the business requirements. Unless there is equilibrium between the two, the ERP system would not be able to achieve the predefined objectives of the business. There must be a thorough study on the pros and cons of the ERP system. The high level management must also be an active party in the planning process.
Readiness assessment: The organization and the prospective users of the ERP system must not be reluctant to implement an ERP system. It is the responsibility of the management to make sure that the benefits of the system are conveyed to the users in an effective manner.
Selection of ERP vendor and third-party consulting organization: This is considered to be an important step, as the selection of the ERP vendor is an important factor in determining the system success and effective implementation. Normally, the third-party consulting organizations are the ones who implement the ERP system and they must also be properly viewed and then selected.
Training and education: The management must take all necessary steps to insure that the users of the ERP system are given the information regarding its usage and benefits in the most precise, clear and effective manner.
Implementation and coordination: Once planning is done, there is a need of effective implementation of the ERP system throughout the organization. There must be harmony and coordination in the business efforts.
Reviewing and post implementation assessment: The task of the management and technical staff also extends to reviewing at regular intervals the benefits, usage and implementation. This is done to ensure that the system is conducive to the changing business needs.
Thus, it can be rightly said that an ERP process is a comprehensive process, which involves effective decision-making and effective implementation. And for the success of any ERP system and achievement of business objectives, the management and the users must be intimately involved for the best results.
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