What is ERP?
Here’s a quick brief about what an ERP system is, its implementation and benefits, so you understand more our business concept.
An ERP system is a software that attempts to integrate all departments and functions across a company onto a single computer system that can serve all those departments’ particular needs. It imposes processes on the organization that implements it
Benefits of ERP are endless, but here are five reasons why your company should implement an ERP system:
- Integrate financial information
- Integrate customer order information
- Standardize and speed up manufacturing processes
- Reduce inventory
- Standardize HR information
Still confused? ERP can answer the following question:
- Is my sales team getting bonuses based on their sales performance?
- How quickly is an invoice raised following the dispatch of an order?
- Is the operational performance of my business improving?
- Is response time to customers and suppliers demands being minimized?
- Does it provide me with timely information so decisions can be made on all management levels more accurately?
You might want to think about ERP as an investment to your company, so it’s all about ROI; return on investment. Any ERP project represents considerable time and cost commitments. The cost of implementing ERP does not only include the software or the license but also the hardware, top management commitment, project management , education and training on the system so end users know how to use it and deal with its screens, external consultants, and technical support during and after the implementation. An ERP project would take one to three years on average. This takes all the above mentioned tasks necessary to complete the implementation.
ERP implementation might require some re-engineering or re-design processes to the structure or processes of the organization to fit the software according to the organization’s best practices. In fact, it will ask employees at the company to change the way they do their jobs. If ERP is implemented, but people still worked the same way they used to, no benefit will result from the system.