Enterprise Resource Planning (ERP) Solution
Enterprise Resource Planning (ERP) Solution
ERP (and the values it brings to business) has been a buzzword doing rounds around the businesses across the globe.
ERP (Enterprise Resource Planning) system is a large computer system that integrates application programs in accounting (i.e., accounts receivable), sales (i.e., order booking), manufacturing (i.e., product shipping) and the other functions in the organization. This integration is accomplished through a database shared by all the application programs.
The benefits that an ERP solution brings are myriad for today’s growing business. Therefore, a growing business cannot ignore the values an ERP system guarantees it. Some of the benefits are:
Benefits Of ERP
- Real-time information throughout the entire company.
- Better visibility into the performance of operational areas.
- Allows for analysis and reporting for long-term planning.
- Reduce Inventory through better visibility and efficiency.
- Savings through the reduction in duplicated efforts.
- Data standardization and accuracy across the enterprise. Single version of “The Truth !”
- Best-practices or proven methodologies are included in the applications.
- It creates organizational efficiencies.
- More efficient operations allowing for increase inability to process transactions (added capacity).
- Reduction in non-value added activities (lean processing).
- Higher utilization of employees (less transactional, more analytical).
- Improvement in decision making through more accurate and real-time data.
ERP Goes Beyond Benefits
ERP just does not only provide business benefits to the businesses but it also provides other benefits as well. ERP gives an information system three important capabilities :
- Consistency and reliability of data across the organization
- Streamlined transaction processing
- Provides operations-level reporting
- However, the benefits and values of ERP can be reaped only if ERP was implemented in the right way.
Success And Failures Of ERP
There are myriad stories around the businesses across the world over describing the success and failure stories of ERP implementation.
ERP has transformed the way multi-billion dollar corporations conduct their businesses. Successful implementation of ERP systems could save tens of millions of dollars and increase employee satisfaction, customer satisfaction and sustain competitive advantages in every- changing marketplace.
Corporate executives are often perplexed by the stories that how reputable corporations have failed miserably and lost ten of millions of dollars in their ERP endures.
The failures of ERP projects are preventable if we can identify the common causes of the failures regardless of the companies and industries that implement them.
An ERP system is a combination of the following :
The failure of an ERP project is often the result of failures in one or more of the above described four components (or groups).
ERP implementation can reap enormous benefits for successful companies or it can be disastrous for companies that fail to manage the implementation process.
- ERP software,
- Business processes that the ERP transforms,
- Users of the ERP system, and
- Computer systems that run the ERP applications.
Creative Solutions ERP Role
Creative Solutions plays a consultative role in selecting an appropriate ERP solution to valuable clients. The consultative role played by Creative Solutions for our client will include :
The above steps are broadly discussed as each one is composed of its own course of activities. In this manner, all working processes of the company at three levels (main processes, sub-processes, activities) are analyzed
- Study the current business processes and determine the gaps emerging by the processes.
- Study and participate in defining the new business requirements.
- Preparing the Request For Proposal (RFP).
- Chalk out the IT Strategy.
- Setting up the Evaluation Criteria.
- Gather the Responses from the ERP Providers and evaluate them against the selected evaluation criteria and shortlist some providers which have the products close to the working processes.
- Undertake Project Management during the implementation.