Why have an ERP (Enterprise Resource Planning)?

Any company that wants to be successful needs to meet all its commitments on time in order to become highly competitive in the market. For various reasons, sometimes the stated objectives are not met because they depend in in part on the people doing the work, it could be delays, omissions, failures and oversights. All these situations result in sanctions that affect customer satisfaction and the company’s finances.

The ERP, back office applications are designed to provide direct support of operations, organizing and optimizing the operations of a company, using a centralized system in which all authorized users have direct access to information needed at all times and from different areas.

Like any software, operates on a programming platform, followed by a series of management databases from the departments that want to integrate; his organization is through modules, which connect to different databases , as required for each department.

ERPs are highly customizable according to the needs of different users and each company.

ERPs provide integrated enterprise-wide information covering all functional areas such as manufacturing, sales and distribution, accounting, inventory, human resources, etc.

By integrating and automating most business processes and share information across the enterprise in real time, it will improve customer service and company image.

Its implementation gives strategic advantages as it allows, through rapid access of information, make timely decisions, facilitating and enhancing business intelligence in a more efficient business processes.

The tangible benefits of their implementation are improving process productivity and staff productivity.

Despite all the advantages described for ERP, there are some limitations for implantation in a company, even though these systems can be adjusted to each company, are often complex and some companies do not know how to adjust to them, and secondly its implementation is usually costly and time required having employees able to control the system. Taking into account these minor inconveniences, it is possible that the implementation of an ERP system in a company be successful.

Comentarios desactivados en Why have an ERP (Enterprise Resource Planning)? / 06 Feb 2013 por Isabel Bereniz Terrones Levano
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A brief comment on ERP systems

In order to achieve a proper management, enterprises need all the necessary information and as actualized as possible. The Enterprise Resource Planning (ERP) is a software that integrates all the information from each department with the objective of optimizing results by improving the flow of internal process’ interaction, increasing productivity and service response while reducing costs.

Although the implementation of an ERP system may seem highly attractive for enterprises, before adopting it, it is convenient to evaluate the advantages and disadvantages involved, such as:

Offers automatic an coherent work flow between departments or functions
Complete visibility of all the processes across the entire organization (or at least of those departments covered by the ERP)
It can be parameterized so as to adjust it to the needs of the organization
It is compatible with other software such as Microsoft Office (which is the most commonly used software)
Secure policies can be applied to the ERP system as well as it can track every transaction that has been done in the system.
It can be break down into different modules, hence it’s not necessary to buy a whole ERP system “package”, but only the modules that are really required.
ERP system are expensive
The implementation of a new ERP system in an organization involves operational costs, these often go hand by hand with frustration issues reflected in those who use it. The implementation of a new system, as flexible as it may be, it will always require users to manage new ways of performing some of their original processes. In my personal experience, people tend to reject new ERP’s implementation due to this matter, thus the effort that has to be apply to adapt to the new set of “boundaries” the system imposes can be very frustrating. Nevertheless, in the long run, this cost disappears because users acquire sufficient practice that allowes them to work in a coherently way with the software.
The IT sector evolves at a high rate, ERP systems have high risks of becoming rapidly obsolete.

One of the most valuable modules ERP offers is the Datawarehouse. This module allows users to develop statistical reports, management reports and scorecards to control the different key performance indicators (KPI) of the business. This is essential for managers and director to keep close control of what is going on and improve their decision-making process.

Comentarios desactivados en A brief comment on ERP systems / 06 Feb 2013 por Sebastian Salimei
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Enterprise Resource Planning (ERP)

ERP are those systems employed to manage business operations in an attempt to integrate their functional areas.

It is important, before taking a decision about implementing an ERP system, to known its characteristics and the advantages and disadvantages that its can be generated for the company with its implementation.

probably, the first factor we need to consider, could be the price, because normally it is really high and it means assuming a considerable investment along a period of time, however, it’s an error to consider that the only price of an ERP is the price of the system, because it usually represents about 30% of the total cost, the rest of the costs, its come from the hardware, other services, maintenance and updates.

The implementation of these systems isn’t instantaneous, it requires a long process in which the company and the employees must adapt to the use of these systems, and take the necessary training to take make the best use. That’s the reason why many companies decide to implant this systems by phases, because it’s easier for the company employees to familiarize themselves with it, it could also be a form of analysing the risks and resolve any problems earlier and with a lower cost.

Each ERP is different, some key factors for deciding the right ERP for an organization are to assess what are the needs of the organization, what processes can be improved and how the ERP is going to help to do it, at this point, the culture, the objectives and the “know how” of the company must be relevant and must be consistent with the ERP system choosen.

Some benefits of implanting an ERP are that it provides reliable informations, avoids duplication and reduces time and costs.

With all that said an ERP is not a suitable tool for any business, only large companies can afford its high cost, because its implementation, implies also a process of adaptation and training that should involve all the company staff and provide useful information for decision-making.

The ERP is not a tool that guarantees higher returns with only its implementation, but it is an effective way to manage, treat and distribute the information to offer a global view of the business, it can generate competitive advantages and synergies within the organization, if the needs of the company are properly evaluated and the system has been implemented with a good management, it can lead to improvements in the profitability of our business.

So, finally, in my opinion an ERP is a truly useful tool when you are able to develop all the implementation process, the formation of your personal and alignment in line with your goals, nevertheless, it requires a large investment and a great commitment from entire organization, if we are unable to perform these actions or our company is not so large enough to assume its costs, an ERP can be a competitive disadvantage because the rigidities in our processes, the higher costs to the benefits obtained or the resistance from the staff of the organization.

Comentarios desactivados en Enterprise Resource Planning (ERP) / 06 Feb 2013 por Alejandro Cuevas Barral
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Integrated Management Systems

Companies are getting bigger and bigger everyday, relationships both inwardly and outwardly are much more complex than years ago, and more quality is required constantly. That is why an Integrated Management System (IMS) is becoming a necessity rather than a desire.

But what is an IMS?? It is a special system that combines all the internal management practices into one system, so all components work as one and not as separated items.

Thanks to those kind of systems, companies can have, with just a glance, a global vision in real time of their business situation. Furthermore, an IMS also lets analyze specific components to check if they are going right or not, so companies can take faster measures about it, reducing the response time.

Determine objectives, aims and strategies, and even make simulations, is much simpler with those programs.

Moreover, an IMS makes communication between departments easier, and enhance it´s feeling of being working together for a common project.

But if these systems have such amount of advantages, why not every company has its own? Well, these type of programs are expensive, not only in economic terms but also in time ones.

Creating and installing an IMS can take months or even years, and also requires a great investment which won´t be recovered in short-term. In addition, staff must need a training about how it works, which also takes time and money.

In conclusion, IMS are doubtless helpful management tools for companies. However , each company must study in detail if they can afford one, and in case of viability, choose the more suitable for their business model.

Comentarios desactivados en Integrated Management Systems / 06 Feb 2013 por Raquel Vallaure Vigil
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Advantages and disadvantages of ERP

An ERP system is the integration of the different processes that take place in a company. Before purchasing a platform like this, you should consider the advantages and disadvantages.

The main advantage is to increase the productivity of the company and that this system has access to information in a simple and time invested in analyzing situations and seek solutions quickly.

The benefits of an ERP system are:
• Increased productivity
• business decisions better and faster
• Strong stability
• Cost control
• Inventory reduction
• Increased revenue by customer response time.
• Store information for all processes, for later analysis.
• Customer follow from acceptance to complete satisfaction.

The major disadvantage of an ERP system is its high cost and installation complexity.

The disadvantages of an ERP system:
• They are complex systems and some companies do not know how to adjust to them.
• The cost of implementation is high.
• Employees must be able to control the system.
• When setting up the system, the changes are very costly in time and money.
• If not made a communication plan and implementation will not be completed to implement, getting a waste of money.

To successfully implement an ERP has to have good communication and implementation plan. Any change of system within a company which has been working in a way is a big change. If this change does not adequately informing staff to understand the benefits it will bring to the company system and them, which leads to poor workers see how this change and reluctant to put it.
To avoid this you have to work in parallel with good monitoring strategy, placing a group responsible for implementation with milestones that are controlled by the area director of the company.
If this is not met, a year the system will be installed and there will be a lost opportunity cost of the money invested.
You have to keep in mind that if you follow a good plan and milestones are met all the system control will bring great benefits to the company. It would all areas of the company communicated in real time thus achieving increasing revenues and decreasing the time in making decisions.

Comentarios desactivados en Advantages and disadvantages of ERP / 05 Feb 2013 por Carolina Marianela Giannoni Melosevich
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ADVANTAGES AND DISADVANTAGES OF A ERP

In my opinion, an Enterprise Resource Planning (ERP) system makes companies more flexible. An integrated communication system, in real time, provides businesses with more adapted and optimized operations.

Besides, the unification of data bases promotes that knowledge transfers to every department. It might be said that the owners of the knowledge are not the employees, but the whole organization.

Another advantage of the ERP system is the security guarantee data it offers against some possible external espionage.

Nevertheless, before making any decision on its establishment, companies should analyze their current and future needs, as the cost of such systems is quite high. There are several options available on the market, moving from standard packages to personalized systems, so that enterprises can select the one that fulfills their needs.

After having selected the most suitable system for the society, a difficult stage comes, which is ´the introduction´. If it has not been properly done, it might cause several problems.

Once the introduction is started, a precise evaluation and control system is required in order to detect the possible mistakes as soon as possible.

All these stages carry a high cost. Because of this, it is important that every user learns how to use the new system appropriately, which demands both investment and time. Moreover, the ERP system needs maintenance. They must be updated and broadened with modules so that the company remains competitive.

Comentarios desactivados en ADVANTAGES AND DISADVANTAGES OF A ERP / 05 Feb 2013 por Sara Diaz Hermosel
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ENTERPRISE RESOURCE PLANNING

The use of the ERPs is, in my opinion, a competitive advantage when an enterprise knows how to use it.

ERPs systems have been generally used in relationship to production, stock, accountancy, logistics, etc. But they can also take part in other areas of business control such as sales, corporative services, human resources…

So, ERP, if it is well used, allow us to deal with the enterprise operations, fitting in its structure all the business processes. This system gives us a more complete and relevant information as well as an intrinsic data coherence, so with this operational control, we can take decisions in advance.

But not all enterprises should get any ERP. There are little, medium and big ERPs. In order to choose the right one, enterprises must identify their needs and analyze which functions are covered by each ERP. Then, the degree of ERP´s functional coverage, according the already mention necessities, should be at least of the 80%. Once this is done, at least 2 ERP suppliers should be looked for and an ERP demonstration should be asked for in our office as well as clients’ references in order to corroborate the information and results. We have to evaluate it in a concise and objective way.

For the implementation itself, it is necessary to create a project team in which the executive managers are involved and in which an internal manager is designated. As in every project a set of deliverables should exist. Another very important aspect in the implementation phase is the setting of parameters, verifying their functioning and their right adaptation to the enterprise. On the other hand, interfaces should be done in order to initially load the data.

It is important to have all these points in mind, because not all enterprises can get profit from all ERPs. So it is really important to know how to identify your needs and how an ERP can satisfy them and which type of ERP is the best for your company and introducing it in a correct way. This is the way of having ERP as a strategic ally and not as an unnecessary waste of time, money and resources.

Comentarios desactivados en ENTERPRISE RESOURCE PLANNING / 05 Feb 2013 por Lucia Garcia Rodriguez
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ERP’s: benefits and drawbacks, by ADRIÁN CAMPOS

Enterprise resource planning (ERP) systems integrate internal and external management information related to an organization, in order to update,
in general terms, the relationship established between the profit level of the company and its growth.
The main benefits of having one of these systems could be, mainly: to increase productivity, to improve decision making and speed, strong stability, cost control, increased revenue through new sales and marketing operations and customer service. This is because they identify lines of inadequate profitability, stock size needs, costs and sales data, forecasts and cost analysis.

However, it must be said that, like everything in life, there are some drawbacks associated with these systems such as long periods of implementation, high
costs and high level of dependence. It is very important to know the sector and size primarily to implement the optimal ERP for each company.

As final recommendations, it must be said that ERP systems do not matter if it does not cover approximately the 80% of our requirements or if it does not identify the information needs of the company. You have to look for 2 or 3 providers that can implement the ERP and request a demonstration in your offices and, of course, evaluate details and compare offers.

Comentarios desactivados en ERP’s: benefits and drawbacks, by ADRIÁN CAMPOS / 05 Feb 2013 por Adrian Campos Gibert
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The ERP as a ICT

Today, I would like speak about the advantages and disadvantages of the ERP systems but before introducing them, it would be helpful to explain what an ERP is. An Enterprise Resource Planning system or also known as ERP, is an information system, used in big companies as well as by small and medium businesses, which tries to integrate in a single system the whole or almost the whole process of a company, with everything being interconnected.

The activities which the ERP connects are accounting, logistics or distribution. However, the system is able to control other different activities like sales, payments, production, stock control and HR administration.

Now, let me tell you briefly about the advantages and disadvantages of implementing ERP systems.

The main advantage is that all departments of the company are integrated, but this is not the only one. Furthermore, it improves the communication among the different departments of the business; the implementation of the system is relatively quick, being able to start in less than six months; it is possible to create a completely customized ERP; you are able to control all the raw materials as goods in process or finish goods and the ERP’s KPIs can warn you of a problem before it appears.

On the other hand, this system also has a lot of disadvantages. This kind of system could be too expensive, but it depends on the customization level. It needs an adaptation of the hardware in the company and the cost of making changes is generally very expensive.

It is necessary to train all employees in the company so that the system is used efficiently and the time and effort needed to for it could be costly. This is because the success depends on the skills and the education of the people who works with the system and if the system is not applied correctly, it can be very detrimental to the company.

In conclusion, I believe that before stating up to integrate a new ERP system in a company, you have to value the profits and cost which you are going to take on, because it can be a very useful tool but many times, these systems could be too powerful for the real needs of smaller companies.

Comentarios desactivados en The ERP as a ICT / 04 Feb 2013 por Agustin Agudo Garcia
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