Nowadays information represents a huge benefit for companies and its customers; the amount of internal and external data assumes gigantic proportions in every department of each company. But data could be a veritable advantage if this information is well organized and standardized. Some companies had understood that organizing data could be a key factor of success and efficiency. But they are not taking advantage of this situation, and are still overcrowded by information that is neither exploited nor redundant. That's why more managers tend to interest themselves on how they can organize and use all the information within their company to improve their efficiency.
The Entreprise Resource Planning system has for its goal the integration of all data and processes of a company or an organization into a unique database that can be consulted by all employees. ERP systems are built in order to cover all the basic functions of a business. All ERPs are cross-functional and enterprise wide. All functional departments in a company that are involved in operations or production are integrated in one system. This universal application permits the elimination of all independent applications of each department of a company.
Before the development of ERP systems, each department had its own computer system. This causes numerous complications for an employee to find the right information at the right place. This is why businesses and organizations seemed to take enormous time while work could actually be done more quickly. But with the appearance of ERP software such as SAP or Oracle, it had standardized and reduced the number of software specialities required within larger organizations. At the same time, it permitted the development of new functions that can be useful for higher analysis.
As we can see, ERP systems have revolutionized the way businesses are organized. That's why it is interesting to develop in detail how can a company create and implement an ERP system into its office. Furthermore, we'll compare the advantages and disadvantages that can cause the implementation of a such organizational system.
Developing an ERP system is not an easy and fast task to accomplish. Redefining old system to a unique system that can fit to every department requires time, analysis and qualified employees. It is important for a manager to have a vision of what needs to be done in order to implement such system. We'll try to analyze the different components that are required to implement an ERP system in a business or an organization. Regardless of company size, an entreprise technology implementation such as an SAP sofware can change how a company does business and how employees work. By following some concepts, any company can make its investment pay off in short term.
The first aspect a company needs to work on is to define global planning. This planning includes date, budget and also the team that will work on this project. It is important for a manager to fix optimum conditions and deadlines in order to have the most productive work possible.
Tags: SAP sofware, ERP, steering committee
[...] In an ERP system, there is only one database that stores all information you need. This updated information will have been automatically stored in this unique database and as consequence accessible to all services. Efficiency An ERP system can permits a better efficiency of an overall process. It is important to know that it does not permit a big improvement of an individual efficiency but it accelerates the overall process of a structure. With ERP's companies can now control costs and simplify all operations. [...]
[...] But it is important also to know the risks and the disadvantages of using a such system. Managers need to have in mind that this implementation represents an important cost for their company. In parallels, companies will have to face the lack of the software flexibility by adapting themselves to the software. But it is crucial for a company to know that behind computers there are humans that will use the software. As a result, this is really important for them to know that it can be difficult for employees to change their working habits. [...]
[...] Conclusion The process of integrating an ERP software within an organization is very rigourous. Every step of this project development need to be fallowed to ensure a success . It is important to plan and budget everything in detail in order to give concrete objectives to your team that is working on the project.Moreover a Manager need to know perfectly his own organization but also his goal he desires to achieve. This will be the fundations of the future data model that will be created. [...]
[...] A company might have special requirements that might not be supported by all the ERP system available in the market. A manager needs also to examine all its processes with a sceptical eye. By automating a poor process of a company, companies will only get this process done faster but not better. This is why it is important to think and re defined processes that might not be qualitative. Before choosing a such project, managers need to not forget that ERPs systems are here to contribute to enhance performance inside a company and that its implementation will require a global re thinking of all existing processes within a company or an organization The logical steps to fallow: Identify the real need for the company to implement an ERP system. [...]
[...] We'll try to analyze the different components that are required to implement an ERP system in a business or an organization. Regardless of company size, an entreprise technology implementation such as an SAP sofware change the way of how a company do business and how employees work. By following some concepts, any company can make its investment pay off in short term. A. Planning The first aspect, a company need to work on, is to define a global planning. This planning includes date, budget but also the team that will work on this project. [...]
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