Information
technology has transformed the way we live in and the way we do business.
Since last decade, IT has made a drastic change in our life. As compared to
earlier stage, when computer was used just as a typewriter, nowadays users have
become more intelligent and IT literate. Now the user knows that a PC can do
many more things rather than just typing a letter in a word processing software
or making balance sheets in excel. They expect more things out of their PC.
During this phase of industry, every one of us must have heard the word ERP in
one or the other form. It may be in title of any IT magazine or may be a point
of discussion in any IT Seminar or may be in an advertisement of big IT
Company. Thus in any form, we all have been through this word. In this short
article, I’ll try to concisely explain the basic yet important concepts
relevant to ERP.
ERP is just not only software. ERP definition refers to both; ERP software and business strategies that implement ERP systems.
ERP implementation utilizes various ERP software applications to improve the performance of organizations for
About Author:
Hemal Fofaria is a consultant in Systems Plus Pvt. Ltd. Within Systems Plus, he actively contributes to the areas of Technology and Information Security. He can be contacted at hemal.f@spluspl.com
What is ERP?
ERP is one of the most widely implemented business software systems in a wide variety of industries and organizations. ERP is the acronym of Enterprise Resource Planning.ERP is just not only software. ERP definition refers to both; ERP software and business strategies that implement ERP systems.
ERP implementation utilizes various ERP software applications to improve the performance of organizations for
- Resource planning
- Management control
- Operational control.
ERP
consists of multiple software modules that integrate activities across
functional departments - from production planning, parts purchasing, inventory
control and product distribution to order tracking. Most ERP software systems
include application modules to support common business activities like finance,
accounting and human resources.
Type of ERP
Few
ERP products available are PeopleSoft, Oracle financials, SAP, JD Edwards etc.
Now
a day’s most of the companies go for custom ERP package which suet there need
and of number of advantage over other ERP package.
What can ERP do for you?
The
fundamental purpose of ERP is to establish a process that links projected
demand plans to supply plans, so that the resources of manufacturers, their
suppliers, and especially their customers are utilized in the most
efficient and cost effective way. To do so requires a process for anticipating
demand and planning and scheduling resources in a manner that supports a
company's strategic and financial goals.
An
ERP System includes ERP Software, Business Processes, Users and Hardware that
run the ERP software. An ERP system is more than the sum of its parts or
components. Those components interact together to achieve a common goal -
streamline and improve organizations' business processes.
ERP
helps in integrating management processes extend horizontally across the
company, including product development, sales, marketing, manufacturing, and
finance. It also extends vertically throughout the company's supply chain to
include the acquisition of raw materials, suppliers, customers, and consumers
There
are five major elements in this:
- An integrated business operating process that links strategic plans and business plans to sales plans and operation plan.
- A people-driven process that is supported by computer system.
- A formal resource planning process that involves all functional within a company.
- Defined responsibility and performance measurements for all functions in a company.
- Communications among all function in a company as well as communications among all divisions and sister companies.
My Learning Experience
Systems
Plus has given me chance to work on ERP software build for a manufacturing
company located at Masjid Bunder – Mumbai. As a team we have successfully
implemented and following things we have learn.
Many
companies buy into an ERP solution only to find that it does not live up to its
promise. The thing that they fail to understand about the process is that it is
just that, a process and a tool. The software does not fail or not work or not
live up to its promise. It does exactly what it is supposed to do. However,
ERP
is a people process supported by the computer, rather than the other way
around. People and their behavior and discipline in utilizing the ERP process
are vital.
If
information have not entered in accurate then perform its functions to the best
of its abilities is not going to work. ERP begins with data collection. Then
that data must be collated and entered. Finally, you need a trained Manager who
can work with the software and understand the results and reports it issues.
When
people understand how to utilize the ERP process, tools, and techniques, the
data and information will be highly accurate, and they will make sound decision
About Author:
Hemal Fofaria is a consultant in Systems Plus Pvt. Ltd. Within Systems Plus, he actively contributes to the areas of Technology and Information Security. He can be contacted at hemal.f@spluspl.com
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ReplyDeleteThis blog offers a clear and thorough introduction to ERP (Enterprise Resource Planning), emphasizing its importance in modern business and explaining how it has evolved from simple software to a robust, strategic solution. The author does an excellent job defining ERP and its multifaceted role in connecting various departments—such as finance, HR, production, and inventory management—under one integrated system.
ReplyDeleteI appreciate the personal experience shared about working with ERP in a manufacturing setup, which highlights the crucial point that ERP success relies heavily on people and process discipline. The insight that ERP is not a standalone solution but a "people process supported by computers" resonates, as it underlines the necessity of correct data entry, employee training, and adherence to process standards for the software to deliver its full potential.
Overall, this article serves as a helpful primer for anyone interested in understanding ERP's purpose, benefits, and real-world application. The only suggestion would be to include a few more real-life case studies or examples of ERP transformations in different industries for readers to better grasp its tangible impact.
Great insights on ERP! Understanding the nuances of Enterprise Resource Planning is crucial for businesses. Investing in reliable ERP Implementation Services can truly streamline operations and enhance efficiency. Thanks for sharing!
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