ERP: ENTERPRISE RESOURCE PLANNING
ERP or Enterprise Resource Planning is a management system used by a large number of businesses nowadays. In general terms the ERP is a system by which a company manages and integrates different parts, internal and external, of the entire organization. It automates this activity with and integrated software application that covers the common functional areas of the company by different modules. These modules can be implemented in stages and can be customized.
It requires a process in which the company has to invest money and time. So it is important to have a clear idea about the system, its advantages and drawbacks and it can help the company with its goals.
The system leads to more accessible information across the organization and a considerable improvement in productivity and efficiency. If the information is shared and the changes are synchronized it enables the company to forecast future problems and make proper decisions beforehand. Moreover, if the business internal process runs rightly we have a great level of satisfaction on our clients.
In addition to all the ERP allows the company to be focused on how to run the business and it makes it easier to develop a new product. It is also relatively quick to implement.
On the other hand we find several disadvantages. The costs of implementation are high and the company has to adapt their system to the standard processes of the ERP. The employees have to be trained to use the system efficiently and it takes the company time and money.
In conclusion, before implementing a new ERP in a company we have to evaluate what our business really need and the costs of adapting an ERP system to its structure. We should think about our business strategy and how can the ERP help the organization to reach the objectives.