Enterprise Resource Planning
Enterprise Resource Planning
Enterprise Resource Planning
Selected Topics of IT
ITIM41
November 2017
Introduction
The ERP systems (Enterprise Resource Planning) are changing the way in which
companies carry out their business. When implements an ERP software, the
company must be flexible to allow it adopt a series of practices that have been
defined by others. This can include the way to place orders, take orders, manage
the inventory and other business processes. In addition, the ERP is a system that
allows to acquire great advantages competitive, reducing costs and time.
However, the practice this type of systems is somewhat complex. It should be
noted that the implementation of these systems is not like any other project of
Characteristics
ERP has the following characteristics for the management of the company.
Information in a single data source: Considers all the areas and processes
of the company.
More Efficient Operation: By eliminating the re-work and re-data capture,
lowering the administrative burden of the company and getting a savings
in cost
Fast access to reliable information: in real time for decision-making
Planning for the future of your business: Production, purchases,
payments, inventories, among other
Financial statements: On-line at any time.
Customization and Adaptation of the system: according to the industry or
size of the corporation.
Quality in the service and attention to clients.
Improvement in the productivity of the employees to perform tasks that
generate value.
Impetus to grow: Rapid and orderly.
There are three characteristics that distinguish an ERP and that is that they are
integral, modular and adaptable systems:
Currently, there are different types of ERP and each of them adapts depending
on the size of the Organization and the functions that support the requirements
of the Organization, implementing an ERP is a way to integrate the data of the
Organization and in the same way their processes to a single system, ERP help
us in different ways for example: the manufacturing of products, quality control,
engineering within a manufacturing environment, even can work together with
chain management ERP of supplements with good results, then the two types of
ERP that exist and examples will be shown.
This type of ERP creates a system from 0, it makes that ERP fits the Organization
to measure its functionality making it indicated to offering the maximum
adaptability, but in the same way you can use modules or ERP packages that are
more economic and much easier to implement, and these are used based on the
functions required by the Organization, in the same way there are solutions clip
art for every type of company in concrete based on the size of the organization.
Examples
SAP
Another solution of SAP is B1 which focuses on the objective is more small and
medium-sized businesses. B1 already includes packages and prebuilt modules
that help different functions of the Organization, e.g. finance, warehouse,
Customer Relationship Management (CRM), e-commerce, shopping and reports.
Microsoft Dynamics
It provides checks and balances using the automation of processes, the booking
of expenditure, control of budgets. Microsoft Dynamics digitally transformed
supply chain with advanced warehousing and inventory management to optimize
visibility and compliance with, the knowledge of the product, materials supply and
integrated logic.
Dynamics NAV works as the tools we know for example: Outlook, Word and Excel
and can run on various platforms such as iOS, Android, and Windows.
This type of ERP as indicated by the title is based on the way that ERP software
will be installed, some programs are installed locally, i.e., need a computing
infrastructure that can be used within the organization programs in the business
equipment. And other solutions are to use it in the cloud, this provides a major
advantage since you can access anywhere where there is internet connection,
because it was found to be hosted on a server, thus provides greater versatility.
Sage ERP X3
A3ERP
It is the erp for SMEs adaptable and intuitive software to make your company
more efficient. It monitors and analyzes the information of different circuits
administrative, productive in all areas of the company in a simple, and global:
A3ERP work area: management of payroll in the cloud, you pay extra,
personnel costs, social insurance and income tax, Portal of employee, etc.
With a3ERP you are more agile and efficient in decision-making and in day to
day and are adapted to the regulatory and technological changes. A3ERP works
in a working environment unique to the global management of all departments,
whatever your needs, designed to grow at the pace that make it your business,
evolving capabilities and expanding its capabilities.
Many companies that have come to implement an ERP system say that it has
improved 70% because they optimize all operating processes of a business.
Is not guaranteed the success of the company, since it is very slow to integrate
staff that are not sure that changes will suffer the organization by using the
system [implementation].
Meanwhile efficiency optimized since you notice the repeated processes and
unites them, so it is less information entering the system manually, as in the
collection of data will make them easier. Cost savings is one of the primary parties
with reliable information reduces administrative costs according to large
companies that use any ERP, this prevents, delays, or interruptions producing
solutions faster than before, ERP grows along with the organization they are
scalable, companies mentioned reports are easier to make and customize,
enhanced reports, even though they are complex make it even easier.
The important parts that is always highlighted by an ERP first and foremost is the
area of processes, since their main function is to increase or accelerate the
productivity within the Organization, which is related to internal processes. In the
case of the methods that are used within the Organization, it is obvious already
that as mentioned some companies want is efficiency that got this management
software. Another case in particular is in the staff to which we refer, therefore,
organizational culture, because it causes some drastic changes of tradition within
the company, the methods change, people resist, the way of working also
changes the basics and also communication between departments is no longer
so fluctuating as before, since there is more communication between them since
everything is centralized but in different modules information is available to
anyone with an authentication, although provoke resistance to change
companies must learn to deal with the situations in a productive manner.
The need for ERPs
With industries developing across the world at a high pace, the need for
management of resources and procedures is felt acutely.
It has therefore become of utmost importance that you employ a tool to co-
ordinate all of your business activities. and the best choice for that available to
you is undoubtedly an ERP.
With an ERP you are able to integrate the various procedures of your business.
Besides these an ERP gives you the edge in other aspects of your business too.
These include:
Production levels
Controlling costs
All these contribute a huge amount to increasing the efficiency of the organization
that you run.
With an ERP you get all the required information in real time.
You are also able to generate advanced as well as accurate prognostics of your
business enterprise.
When it comes to the data concerning your finances, ERPs are a powerful tool
that soon becomes indispensable.
It lets you process and organize all of the data with ease.
The module of your ERP devoted managing your enterprise performs some
crucial functions.
These include:
Planning Strategically
Managing day to day running of your business
Communicating with all relevant stakeholders.
When you decide to employ an ERP you not only decide to make a, often hefty,
investment, but the commitment runs far deeper than that.
When you implement an ERP please understand that it will change the way you
are used to do your business.
And this change is only for the better as you come out with a leaner more able
organization.
Be cautious of viewing ERPs as a sort of magic wand that can cure the ills of the
sagging fortunes of a enterprise in an instant.
As we said earlier, the changes are deep rooted, and it will take time for the
changes to take effect.
The main takeaway here is that the benefits of ERPs are very real which you too
will see in your organization.
The Pros Outweigh The Cons
There can only really be one detriment to an ERP. IT is usually its cost and the
scenario too is changing much to the delight of business owners.
The benefits are so great that in case of ERPs they easily outweigh the cost
involved in employing one and associated expenditures.
Remember, an ERP is one of the most valuable business investments you are
going to make, so invest wisely and invest in a next generation modern ERP like
Expand ERP with all the latest features.
Conclusions
First of all as already mentioned by his name ERP, is software that takes
advantage of all the resources of the company, for example most of these
software integrates the departments of administration, accounting, human
resources, the integration of CRM, and things Basic such as inventory, programs
are dedicated to only a specific in the company field, but the ERP is integration
of all them in only one, its storage in the cloud or local servers, this improves the
service customer that its Factures, their views are as financial or production, to
have this on hand it is easier to realize solutions to stage future.
One important thing is to determine the needs and capacities suitable for our
Organization, this to make less implementation time, as they mention us takes
time to implement, and also in order to function optimally, such as NETSUITE
ERP or as ODOO which are ERP that I've seen, I give the example of an
associated company where working water ALASKA commented us that minimum
was 6 months of implementation processes were not so complex, that is to say
that much more robust companies they would last in implement more than 8
months, have an ERP is a great advantage, for management and for those who
depend on information that throws the system.
ERP is a system of information that relates, through various modules the different
functional areas of the company, trying to give a unique and comprehensive
solution to the operations of an organization. Its main feature is the mechanization
of most of the functions within the coverage provided, notably reducing the
workload and non-value added activities. On the other hand, reducing the need
to manually enter data, eliminate possible sources of error. ERPs involve also the
automation of most of the flows of information within a company and integrate
them, allowing a more exhaustive analysis of the information. And analyze the
information will lead to the company to make decisions according to its strategy.
Communication, agreement and compromise between the different related
departments, are of utmost importance to achieve each of the parties which
integrates ERP has well-established its process, its inputs and outputs. For what
the relationships between the individuals taken importance, conflict management
is essential to achieve collaboration on the integration of parts of the ERP.
The use of an ERP is very beneficial for the organization if what we seek is to
continue growing in the market, but to know what type of ERP we need to
consider different aspects such as the size of the organization and the solutions
that we want to implement. For example, the complete architecture of an ERP
needs to be started from scratch, this will give us better results, but there is also
the alternative of only using predesigned packages or modules that help us obtain
good results in specific areas such as sales, finances or Marketing to mention a
few examples.
So, adapting an ERP in the organization brings several advantages, one of which
in a personal way is one of the most important that I can find is the decision
making based on the information, in this way it reduces the risk in the organization
that could cost you economic losses, customers, position in the market, suppliers
and endless problems, things that could be avoided with the use of an ERP when
making the best decisions based on the results that are being obtained in real
time.
The ERPs is an information system that allows the integration of certain operation
of the company. These ERPs can be used in practically all the companies (Small,
medium or big companies). The purpose of these system is support the
customers of the company, bring quick response times to the problems, making
a better way to take decisions and minimize costs.
Currently the ERPs have to be used in the companies, because, those systems
allow to have a better management. In this way you can reduce the risks that may
cause economic losses, customers or data.
As we saw in the document, the ERPs offers several benefits for companies.
Some of those benefits are:
The benefits are not immediate, but in a medium term they will be reflected.
The ERP system has multiple functions that help the better organization of a
company, among them has different characteristics that make on this system for
their help in the company, it is important that this system has the updated
information for each department but in order to take into account that there is no
department that more attention, so they can make the planning for the future
purchases of raw material for the production area, perform bank transactions for
the finance department, etc. It has many benefits that can help the director of a
company to lead you down a good path created by a plan and get good results
An ERP is software that helps companies plan and control the processes and
resources of your company even if this company has several branches so to
speak in different parts of the world, all are connected to make it easier to manage
everything, there are different types of ERP according to the type of company you
have, some of the advantages of ERP is that it makes processes profitable, they
are customizable, it improves internal communication, it allows to control
operations, it reduces costs and improves efficiency, to choose an ERP you need
to know are the specific needs, what is the volume of work you handle, what
budget do you have, what departments does your company have and how do
they work.
References