“Excellence
is the unlimited ability to improve the quality of what you have to offer.”
What is ERP
ERP is the acronym of Enterprise Resource Planning. ERP utilizes
ERP software applications to improve the performance of organizations' resource
planning, management control and operational control. ERP software is
multi-module application software that integrates activities across functional
departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP software may
include application modules for the finance, accounting and human resources
aspects of a business.
ERP vs. CRM and SCM
CRM (Customer Relationship Management) and SCM (Supply Chain
Management) are two other categories of enterprise software that are widely
implemented in corporations and non-profit organizations. While the primary
goal of ERP is to improve and streamline internal business processes, CRM
attempts to enhance the relationship with customers and SCM aims to facilitate
the collaboration between the organization, its suppliers, the manufacturers,
the distributors and the partners.
ERP Definition - A Systems Perspective
ERP, often like other IT and business concepts, are defined in many
different ways. A sound definition should several purposes:
- It answers the
question of "what is ... ?".
- It provides a base
for defining more detailed concepts in the field - ERP software, ERP
systems, ERP implementation etc.
- It provides a
common ground for comparison with related concepts - CRM, SCM etc.
- It helps answer the
basic questions in the field - benefits of ERP, the causes of ERP failure
etc.
A
definition of ERP based on Systems Theory can server those purposes.
ERP is a system which has its goal, components, and boundary.
The Goal of an ERP System - The goal of ERP is to improve
and streamline internal business processes, which typically requires
reengineering of current business processes.
The Components of an ERP System - The
components of an ERP system are the common components of a Management
Information System (MIS).
- ERP Software - Module based ERP
software is the core of an ERP system. Each software module automates
business activities of a functional area within an organization. Common
ERP software modules include product planning, parts purchasing, inventory
control, product distribution, order tracking, finance, accounting
and human resources aspects of an organization.
- Business Processes - Business
processes within an organization falls into three levels - strategic
planning, management control and operational control. ERP has been
promoted as solutions for supporting or streamlining business processes at
all levels. Much of ERP success, however, has been limited to the
integration of various functional departments.
- ERP Users - The users of ERP
systems are employees of the organization at all levels, from workers,
supervisors, mid-level managers to executives.
- Hardware and
Operating Systems - Many large ERP systems are UNIX based. Windows NT
and Linux are other popular operating systems to run ERP software. Legacy
ERP systems may use other operating systems.
The Boundary of an ERP System - The boundary of an ERP
system is usually small than the boundary of the organization that implements
the ERP system. In contrast, the boundary of supply chain systems and ecommerce
systems extends to the organization's suppliers, distributors, partners and
customers. In practice, however, many ERP implementations involve the
integration of ERP with external information systems.
ENTERPRISE
RESOURCE PLANNING: MODULES How to make ERP User
friendly? The very thought of ERP function creates a sense of apprehension
and hesitation among users. They get scared on thinking about their fate of
working with the technology. These are only mindsets. They have to be dealt
carefully so that the end users are comfortable in working with ERPsoftware application so that they contribute towards the
company's benefits. Some of the steps suggested include: Proper Training This is the most crucial factor in making ERP user friendly. The
training program has to be designed based on the requirements of the users. In
fact many companies use their in house IT staff to draft the training
curriculum in consultation with the ERP consultant. It is advisable to follow
this procedure because companies know what their employees are looking and they
will help in providing the required material to upgrade and clarify them in all
respects. ERP software vendor will not be able to provide this. Making the Employees a part of ERP committee The employees will have to be included in the core committee of
ERP decision making team not because of power politics but for practical
reasons like expressing difficulties and making representations and as when
needed. If the management is thinking of hiring an ERP consultant and making
use of the services of IT personnel alone for ERP process it is certainly an
unwise move. Make the necessary Alterations The very purpose in having employees in the core team is to
obtain suggestions and make adjustments as and when demanded (of course subject
to the validity and approval from technical people. The amendments shall be
made as and when required and it need not necessarily be at the request of the
employee. The technical personnel or the consultant himself might find some
flaws and advantages while examining ERP in the company. Whenever there is an
opinion from any source it should be immediately heard. The expression of views
will go a long way in making ERP user-friendly. These alterations should be
reviewed before deciding on the ERP software vendor. Conclusion These are the basic steps to ensure a user friendly ERP. Other
actions would largely depend on various circumstances in the company (that
decide ERP function). Related Articles What are the steps to be taken to account the performance ERP
software programs in your organization? FOR MORE INFORMATION PLEASE LOG ON TO ERP WEB SITES 
It has been often said that ERP training should not resemble a technical
symposium. If companies are unmindful to this notion then they are likely to
land in more trouble as the process will only create fear and confusions among
employees. The thrust areas in training should be as simple as possible and
reach the laymen so that he understands the procedures and becomes a master
over a period of time. These steps will ensure proper use of ERP software
application.
If these issues are not addressed in the right manner the companies will later
find their employees in debacle and blaming their employer in infusing the
technology despite opposition. The purpose in giving large importance to
training is to make the employees understand the nuances and develop a liking.
ERP function will then become a part and parcel of their working. Training should
impart the knowledge required to unravel the mystery behind ERP software
application.
Neither the IT staff nor the ERP consultant is going to regularly use the ERP
systems of the company regularly. Even if the IT staff uses it will be on the
programming areas and not on the functional issues. Hence proper attention
should be received from the persons who would be making use of it. This will
help in rejuvenating the modification process and make it more meaningful and
user friendly. This committee should be in action right from the time of making
negotiations with ERP software vendor.
Getting to know
BPR
What are the reasons for ERP
failure? How to avoid them?
Choosing ERP Software
Customizing ERP Software
How to set ERP Standards?
Factors influencing ERP price
What is the Necessity for ERP Gap
Analysis and how is it done?
ERP Implementation Guideline
ERP Implementation Life Cycle
Challenges faced by ERP
Flaws in ERP training
How to overcome ERP troubles?
Significance of ERP Implementation
What are the lessons learnt from
ERP Performance Studies?
What are the different methods in implementing ERP?
Constituents of ERP Training
Errors in ERP implementation
Process Management