Do You Need An Erp System?

In all facets of business, it is certain that a properly implemented ERP system will help save labor, resources, and overhead. The system will aid in discovering unneeded labor and misuse of the organization 's resources. It will help optimize the businesses ' processes. For instance, the human resources department is able to identify the necessary level of laabor to accommodate an unexpected change in customer demant as soon as a sales spike occurs. These types of decisions can be made on the spot and this can rid the organization of communication difficulties during times of crisis (ERPwire.com).

Implementing an ERP system is not easy and can be very challenging. Managers should be able to recognize and implement strategies to minimize risk, if they recognize the nature and magnitude of the risks they face in the implementation process, they are able to minimize the risks by employing project management and control strategies to address the challenges they face. There are some risks involved with ERP implementation, which involve technology, organization, people, and project size.

Through the years, Enterprise Resource Programming (ERP) has become an incredibly powerful tool for companies to use. However, there are many possible side effects of attempting to implement an ERP system that without proper management. While ERP is an incredibly useful advantage to a company. It also can be a detrimental setback, in some cases even causing bankruptcy.

ERP systems are expected to provide many benefits, including improved business efficiency. However, they are also blamed for several business problems and

There are several common approaches to ERP integration, and each provide their own unique strengths and weaknesses.

ERP has become a potential solution which the companies are aiming for to improve their business process performances. There are various challenges that are encountered by the organizations in terms of people, process and systems oriented issues in the usage of disparate systems. In aim of increasing their business operations, the companies are eying at ERP as potential solutions. In this research paper the focus is upon understanding how ERP can be resourceful and few case outlooks has been discussed on the successful implementation and the potential benefits the organizations could gain.

It has seen numerous commercial ventures evidently keep on overlooking the issues and issues experienced all through the implementation of ERP cycle, as proof by suggesting that, more than 40 percent of application development project get unsuccessful, and 90 percent of ERP executions wind up late or goes for over spending plan lastly 67 percent of enterprise software activity could be viewed as negative or fizzle. The prior implementation, current implementation and the post-implementation phase continue in the lifetime of the ERP. The initial implementation are subsequent revisions, transcend which is normally considered application or system maintenance work.

Enterprise Resource Planning(ERP) integrates the external and the internal management of information across the organization. ERP systems automate the different business processes like sales and service, customer relationship management, finance, accounting, manufacturing with an integrated software application. It is a complex software package that integrates the data and the processes across the organization. Separate systems were maintained in 1960’s by the organizations for different business functions which required frequent updates and lead to ineffeciences in the organization. Since it’s inception in 1990’s ERP systems have been developed drastically with top players like SAP and Oracle. These systems have improved data efficiency, improved data accuracy, improved efficiency and productivity. Many companies tried to implement ERP, some failed while some successfully implemented it. The following paper describes what were the factors that lead to industy’s biggest ERP failures and what companies did the right things for successful ERP implementations.

The ERP landscape is rapidly changing. First step in any ERP selection process should be to assess what’s available in the market, and to gain understanding of how technology has changed. Schedule time with vendors especially those who have a reputation for being forward looking and innovative. Take the time to do some demos in order to identify new opportunities for efficiency improvement. The shift away from customization towards configuration is one example of technology changes that you risk losing out, if you think traditionally. Configurable standardized solutions are emerging as

Regardless of what industry your business is a part of, implementing an ERP system is a crucial venture that must be taken seriously for it necessitates strong commitment by the project team and solid support by the business leaders for guaranteed success. It is a known fact that ERP deployment is among the most costly, labour-intensive, lengthy, and complicated tasks a project team can take on.

The third key element of ERP implementation success is user training and education. People inherently fear the unknown and the best way to overcome any reluctance to embracing the new system is removing the “unknown” element from the equation. In addition, the system will undoubtedly embody new and different ways of doing things and additional sources of information that users will not be able to fully exploit if they are not trained to do so. And don’t install a new system and then force it (modify it) to look and act like your old system—if you keep doing things the same way you always have, you will continue to get the same results. And that won’t be much of a return on your investment.

While it could yield efficiency it has two implementation problems both at the managerial and operational level. At the managerial level, implementation of ERP system is a costly affair especially when the system develops problems shutting down, yet it is expected to increase efficiency. The firm can use lots of money working on the system and end in financial crisis which could reduce efficiency further affecting management because they are the decision makers and the negative turn could impact there poor decision making skills. Operational impacts result from technical problems of transferring data from old systems to the new ones. Second could be problems with translation of systems into the language of the company that could impact adversely the firms report. For instance, cosmetic the biggest Chinese dealer in cosmetic bought an ERP system

Enterprise resource planning software such as Oracle and SAP is highly effective tools to manage and analyse the multidimensional aspects of businesses such as financials, operations and corporate services, human capital management, etc. (Priyadarshini, 2002). A company using the ERP financial products (Priyadarshini, 2002) can save a lot of money over the long term and the organization's productivity will be improved. Furthermore Morris (2011) suggested that those firms which are implementing ERP systems are less likely to report internal control weaknesses compared to non ERP implementing firms. However Kwasi & Salam (2004) noted that ERP implementation is very risky as it requires large amount of investments and significant organisational resources.

This essay is going to be provide a clear overview on how a specific company has integrated the system of ERP in their

ERP system integrates technology that ensures the operation are managed and used effectively by organization (Maguire et al., 2010). This system enables an organization can observe the different departmental functions in one database. It improves and shortens the business process, so restructure is essential for existing business.