ERP or enterprise resource planning is a management system or software developed mainly to aid big companies and business organizations, basically enterprises, to plan and managing their resources. These resources can be human resources, financial, technological and other resources. It is a top business management tool and can help save the business a lot of time, money and resources if implemented properly.
It can be used for many business activities such as product planning, manufacturing, sales, and marketing, inventory management, shipping, payment, etc. It helps to manage all the different departments of the organization and creates a smooth flow of information between the business managers, employees, and stakeholders.
What are the characteristics of ERP?
ERP has the following characteristics namely –
* ERP is an integrated system and works round the clock and not periodically
* ERP uses one database to support all its applications
* ERP is consistent and works the same way for all business modules
* The IT department has to install the ERP system which involves elaborate application and integration of data.
How can ERP be implemented in a business enterprise?
SAP ERP implementation extends to the enterprise staff and practices at work. ERP delivers three types of services to help implement changes in the staff and practices – customization, consulting and support. ERP software implementation time depends upon the size of the business and the scope of change to be undertaken.
Small enterprises take up less ERP implementation time and big enterprises take up more time. ERP is always implemented in stages. It can be implemented in the following ways –
1. Process preparation – ERP is implemented in almost all the processes of a business enterprise. Process are subject to constant change and a strong understanding of these changes is vital in implementing the process successfully. In fact, weak process implementation is the main reason for a project to fail. ERP, if implemented, helps to organize the process better.
2. Configuration – before implementing a suitable ERP system for you business enterprise, it is important to configure an ERP system according to the needs and requirements of your organization and tune it according to what goals you want your organization to reach and the time limits within which you want to reach them.
3. Two-tier ERP – the two tier is hardware and software and this method of implementing ERP helps the organization run two different ERP systems at once. One ERP system is at the management or corporate level and the other system is at the subsidiary level. Each system has its own working models and business processes and will help your business enterprise reach targets and goals faster and better.