Tuesday, March 3, 2015

Enterprise Resource Planning (ERP)

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This article brings out the simple features of Enterprise Resource Planning( ERP) and how it can be visualized.In a nutshell ERP software tries to integrate all different departments and functions of an organization into a single computer system to serve the various needs of the departments.The purpose of this system being the free flow exchange of information across the various business functions within the organization and connects with outside stakeholders.It seems a herculean task to get all individual units on board on a system.But with the help of an integrated  approach this can be made feasible.
Below one can see the differences between a non-integrated system and an integrated one.


                                    Enterprise Resource Planning

ERP system is a complex one during the implementation phase but by spending quality time and investment it adds a lot of value to the business.ERP helps in accurate forecasting,integrating leading to effective communication and planning.ERP can be expensive initially but once the system is running can expect to minimize costs and be effective.However one needs to take precautions to make sure ERP is done the right way otherwise might cost a fortune.



2 comments:

  1. The allure of having "one system to rule them all" has always seemed appealing. What I have typically found though is these type of systems take forever to develop and when they are complete no one seems happy with their portion of it and the non-integrated system tends to to the job better than the individual portions of the integrated ones.

    If you were to be able to implement an ERP system that was cheaper than the sum of the non-integrated systems and provided the same or better functionality each portion of the non-integrated systems I think you would truly have that perfect system.

    ReplyDelete
  2. The allure of having "one system to rule them all" has always seemed appealing. What I have typically found though is these type of systems take forever to develop and when they are complete no one seems happy with their portion of it and the non-integrated system tends to to the job better than the individual portions of the integrated ones.

    If you were to be able to implement an ERP system that was cheaper than the sum of the non-integrated systems and provided the same or better functionality each portion of the non-integrated systems I think you would truly have that perfect system.

    ReplyDelete