ERP Software

ERP Software System

ERP Software Systems are information systems for identifying and planning the enterprise wide resources necessary to support and automate the integration of the operational processes of businesses, which may include manufacturing, distribution, personnel, project management, payroll, and financials. Originally, ERP Software Systems were an expansion of MRP II systems, and as such were used mainly for manufacturing firms. By now, their scope is much broader.

Almost any business can benefit from the integration and sharing of information between departments. The purpose of ERP Software Systems is to collect the geographically scattered enterprise wide information across all the functional units of a business and consolidate it, providing the management team with a comprehensive overview of the company.  This summary later helps influence decision-making in a productive way. Because integration of information is such a significant component of ERP systems, at the center of ERP software systems exists a well-organized, centralized data storehouse. This connection between business processes helps to develop communication, leading to a notable increase in productivity and performance. The major objective of an ERP software system then is to integrate information and processes from all functional divisions of a business and to merge it for easy access.

To a business, implementing ERP software represents many advantages. Integrated information that combines all functional areas; streamlined operational processes and workflows; improved efficiency and productivity; better tracking and forecasting; and enhanced customer service and customer satisfaction.  Nevertheless, implementing such a system is not effortless. It takes lot of systematic planning, professional consultation, and a well structured approach. In cases where the business is quite large, it may even take months to fully implement an ERP system.  Not to mention that implementing an ERP system will sooner or later call for significant changes in the way employees perform their tasks.

The ERP implementation process requires five major stages.  These are: Structured Planning, Process Assessment, Data Compilation & Cleanup, Education & Testing, and Usage & Evaluation. Because the process is so complex, most companies will utilize ERP vendors or consulting companies to assist with implementing an ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting –responsible for the beginning stages of the implementation project; Customization –helping make changes to better suit the needs of the particular business;  and Support –being there to maintain the software and troubleshoot problems for the entire life of the product.

Written by :

tracey boxer