ERP (Enterprice Resource Planning) are currently being very common in companies, not only in large organizations but also in small and medium-sized ones, therefore, knowing and knowing how to implement software of this type will be extremely important for an organization, since which will undoubtedly increase and improve production, as well as help improve your processes.
Introduction
The management of the company implies the constant adaptation to changes generated by new environments and for this reason, technological help is necessary to allow companies to anticipate and adapt to the needs of customers. With the emergence of ERP's (Enterprice Resource Planning) in the 90's this is possible since ERP is a software tool that has helped companies in the management of their processes. ERP is a technology that focuses on the internal processes of a company contrary to e-business which is focused on the external relationship between companies; ERP supports business strategies, e-business opens doors to new strategic opportunities.
Among the characteristics that an ERP must have are the optimization of business processes, access to reliable, accurate and timely information, the possibility of sharing information among all the components of the organization, the elimination of unnecessary data and operations, and the reduction of times and costs of the processes.
Having a tool that connects all the information areas of a company is a value that will allow success in the current environment that organizations live, but special care must be taken with the human factor, since the change generated by the Implementation of this type of technology in any company is very important because it changes the organizational structure, affects the culture and mainly changes the individual role of the members.
It is important to know what an ERP is and what it is not and how a bad implementation of such software will undoubtedly lead to failure.
ERP
ERP Enterprise Resource Planning or Company Resource Planner, is a software that allows you to manage the functional areas of the company, the providers of this type of software in Mexico define it as “a structured information management system, designed to satisfy solutions business management ”. Among its main characteristics are the ability to model and automate most of the basic processes of an organization, from the sales order to the distribution of the product; The range of functions that ERPs cover are: accounting, finance, sales order management, logistics, production and human resources. We must bear in mind that ERP solutions have specialized by industry segments,which implies that the logic to optimize processes is based on specific operation models.
Some factors to consider to implement an ERP:
- The objective and vision of the business project must be clearly defined. Have the right team for the implementation of the project, as well as the person who will take the role of project leader. Continuous training not only technological Adaptation to existing programs (integration of the back-office) and from the front-office), Carry out a well-defined work plan, have expert advice and benchmark companies that already have this type of tool already integrated. The implementation of this type of technology will require organizational change and must be taken into account. The type of company culture is taken into account. Follow up on the implementation
Advantages of ERP
- Integration of information processes between the different areas Available and immediate information for decision-making Increased productivity Improved response times Quick adaptation to changes System scalability Data integrity User-defined security Cost reduction
ERP weaknesses
Much has been said about what ERP can do, however, there are small holes in the design that have come to light, not to discredit this type of tool, but to mention the areas that can be reinforced and corrected. Some of these weaknesses that we can mention are the complexity of the process to integrate information contained in systems external to the ERP or in geographically distributed applications, as well as the efficiency of operation of the systems is considerably affected if the history of transactions.
Why ERP fail
Having an ERP implemented within the organization does not mean that the company already has a "better future assured". It is necessary to see the advantages and disadvantages of the different software packages that best adapt to the needs of the company, the characteristics of the company, the line of business, the resources it has, among others, must be considered.
The organizational culture will be a key factor for the success of the implementation, to know how to involve the company personnel and there is no resistance to the change that will undoubtedly change the organization.
Among its success factors we can mention the improvement of processes, staff involvement, training, culture, acceptance and adequate selection, but the key is the commitment and dedication that an investment of this type deserves, which can lead to to the company to the operation and financial efficiency or to the bankruptcy of the company.
conclusion
Technology has occupied a very important place in organizations since it has allowed their processes to be more effective and efficient. Having technology that adapts to the constant changes that are generated is a competitive advantage that makes organizations continue to have a presence in the market.
With the appearance of technological tools such as ERP that allow the integration of information, companies are benefited in the administration of their processes. It must take into account not only the technological factor but also the type of organization, its line of business, its mission, its vision, the culture, the general characteristics of the company, since knowing these factors can determine with greater accuracy what you really want to comply with the implementation of the system.
It is important to note that the correct implementation of an ERP entails radical increases in productivity as well as the possibility of having better information in decision-making.
The implementation of an ERP is a decision that the company makes not only to obtain small results but results that really transcend the growth of the company, an ERP is not just another trend in the current economy but a technological need that day by day It is being presented in many companies and that is why the need to know the scope and limitations of software of this type.
Some of the most common ERPs are: SAP, JD Edwards, BaaN, People Soft, Exactus, Oracle, Platinum, Solomon, Micro, SIP, (the latter only cover administration and payroll functions).
Finally we can generalize the term ERP to business software, commenting that they are the software applications that allow a company to automate its operations and its main characteristics are that all the functions are related to each other.
With the information presented here, you can be more informed about what an ERP is and its scope, you can delve into the subject and investigate the requirements to implement an ERP in an organization, companies that are dedicated to the development of these tools as well as those mentioned above, as well as costs, among others; in order to make possible a successful implementation that leads to generating value for the company.
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