The Ultimate Cheat Sheet on Enterprise Resource Systems

ERP is an acronym for Enterprise Resource Planning System, but even its full name doesn’t shed much light on what ERP is or what it does. Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.

ERP software integrates all facets of an operation including product planning, development, manufacturing, and sales and marketing in a single database, application and user interface. At its most basic level, ERP software integrates these various functions into one complete system to streamline processes and information across the entire organization. Enterprise software sales, examples of ERP Systems, ERP implementation have emerged to help business managers implement ERP. Most early ERP systems consisted of mainframe computers and software programs that integrated the various smaller systems used in different parts of a company. Since the early ERP systems could cost up to $2 million and take as long as four years to implement, the main market for the systems was Fortune 1,000 companies.

Factors in A Successful Enterprise Resource Systems Implementation

Enterprise Resource systems are being implemented today to provide a stable foundation for a growing number of businesses. There are a number of steps a company can take to ensure a successful implementation once a small business has decided to install an ERP system and selected a vendor. ERP implementation is more likely to succeed if the company positions it as a strategic business issue. The ERP system should fit the company’s overall strategy and help it serve its customers. It may also be helpful to find a passionate leader for the project and select a dedicated, cross-functional project team. The small business owner should make certain that these individuals have the power to make decisions about the ERP implementation process. Using change management techniques to manage the human dimension of the project, since ERP requires a great deal of support from affected areas of the company. Companies need to interpret the data collected carefully and accurately if the system is to contribute to business planning. Although ERP systems may seem complex and costly, even small businesses are increasingly finding it necessary to invest in such technology in order to remain competitive.

Analyzing vendor’s situation and reputation

Before we begin with analyzing the vendor situation and reputation, first we need to study the vendor changes in recent years. What the vendor’s most recent products are, and what new products it plans to issue in the coming years. How long the company has been in this industry, and how well it understands it. We need to understand if the vendor has specialized experience in providing ERP solutions to organizations of a similar size and type as yours. Growth of the vendor’s business, and whether it is likely to continue in its current form during the lifetime of the ERP platform.

Source: euro-blogs.eu

Study the technologies offered by ERP

You need to know if  the Enterprise Resource Systems solution is turnkey or will be customized to your organization. Consider the following factors when you’re ready to compare ERP or are actively performing your software selection process. If the solution is scalable, able to adapt in response to growing users or increases in data. The speed of the product and its impact on the end users is also important in considering and ERP system. Need to also understand the possible support for multisite or multi-company environments if you need to work with multiple operations.

What are the system’s functionalities and ease of use?

With the implementation of the right ERP system analyze the current challenges that your organization faces that would be solved or reduced with the ERP system. Evaluate which of the ERP system’s functionalities would accomplish this, and which you plan on actually using.  If possible, arrange for a demonstration to see if the potential end users find the platform easy to use, and whether the platform allows them to carry out their daily tasks.  

Customer relationship management interface with ERP

Evaluate the cost of the ERP platform and whether it is appropriate for the functionalities that it offers. Determine if the charges will be one-time or recurring. If the latter, decide whether your organization can truly afford to use this system on a continuous basis. Find out the charges for annual maintenance, as well as any upgrades. Consider any hidden costs that might not be immediately apparent. Calculate the long-term total cost of ownership for all aspects of the system, including hardware, software, and support.  Once you have finished with these evaluations, estimate whether the projected return on investment will be significantly more than. An ‘adequate’ ERP software solution should encompass drawing a client’s specific needs together, setting up the current requirements into a proper selection of choices, and then mapping the business processes to best distribute invoices/documents/reports.  Gone are the days of having paper checklists and batch processing done at the end of the day.  ERP Solutions need to initiate the next step of the process as soon as conceivably imaginable.  

Enhanced Business Visibility

With the integration of otherwise disparate systems and processes, ERP systems improve communication between all aspects of a business from customer service, to accounting, to human resources. Efficiency is still the name of the game. Whether you are an SME looking to scale operations, or a large corporation pushing innovation after innovation, efficient operations are still the key to maximizing profitability. It’s no surprise then that Enterprise Resource Planning (ERP) systems are booming .Manufacturers and suppliers justify their ERP acquisitions based on the following factors:

  • Initial investment
  • Continuing operating costs
  • Return on investment

 

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The team here at ThunderQuote hopes that this article has provide you with a better understanding of the ERP systems. For more related articles, please visit ThunderQuote.

ThunderQuote is the most comprehensive business services portal in Singapore, Australia and ASEAN , where hundreds of thousands of dollars of procurement contracts are sourced every month by major companies like Singapore Press Holdings, National Trade Union Congress and more.

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