Erp and the technological part of the company

An ERP, for its acronym in English Enterprise Resource Planning or Business Planner, refers to a computer package that partially or totally covers the functional areas of the company. In an interview with the main providers of ERP solutions in Mexico, says Aldaco (2000), who all agreed to define it as a structured information management system, designed to satisfy business management solutions. They are basically characterized by their 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 operating models.

Why use an ERP?

Due to the process of globalization, a change is brewing in the way companies do their business, in addition to demanding higher levels of efficiency in operations and processes caused by competition.

In this sense, companies that wish to survive will require business information systems that allow them to increase their competitiveness.

According to McDaniel (1998), at present it is necessary to establish that the management of information for an organization is the vital liquid for it to remain in open competition. The information system must be flexible, interactive, allowing managers and executives to obtain and manipulate information.

It must be considered that the decision to incorporate an information system will change even the business vision and doing it correctly and with a clear vision of the process will gain a very important competitive advantage.

There are three fundamental reasons why a company is interested in implementing an ERP solution: increase its competitiveness, better control its operations and integrate its information.

1. Competitiveness: Companies require continuous optimization of their costs, whether for production, marketing or administration; on the other hand, they must constantly increase their productivity. Control: Several companies have an isolated management of the information generated in the different departments and require a global solution that integrates and organizes the data so that it supports decision-making in an accessible way. Integration: It is important to integrate the information in the vital areas of the company such as finance, distribution and manufacturing.

In this sense, one of the main integrations is between the back-office and the front-office, that is, those applications that support the sales force, marketing and customer service with the applications that allow companies to buy, monitor, manage and distribute products.

Reducing the uncertainty about the veracity of the information, improving communication between areas, reducing the duplication of information and making the integration of processes more efficient are other reasons for carrying out the implementation of an ERP system.

It is essential to consider the benefits that the implementation of an ERP system will bring:

* Integration of information processes between 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

Special emphasis should be placed on the selection process for companies capable of providing integrated solution services.

Cerezo (2000) comments regarding the special care that must be taken with regard to the selection of solutions:

Managers must select solutions that enable them to integrate traditional applications with other key business applications and fully capable of operating in an electronic business environment.

The selection of this type of solutions must take into account that technology is changing, the implementation process must be short and do not require a large investment of resources. In addition to establishing what she considers would be the steps to make a correct selection of such a system for the organization:

* Be very clear about what you want to do, the objective pursued.

* Involve all areas of the company in order to establish the real needs and requirements of users.

* Detail and catalog the needs to be satisfied, in an order of priority

* Search for suppliers and the best way to search for them is to search the market for products and distributors that can meet needs.

* Once the selection is made, the biggest challenge facing companies to implement modern business information systems is to put them into operation successfully, on time and on budget, says "Steven E. Reyes."

The implementation of an information system is not only the fact of installing the software and that's it, as if by magic you will have instant results as a magic formula that will increase the efficiency of the company. It is considered that the total cost of ERP solutions not only includes software, maintenance and technical support, but also the cost of implementation.

Claudia Cerezo in her article "Beyond the internal processes of your company: ERP's on the Web" comments on the ten factors for the successful implementation of an ERP:

The vision of a business project

It is vitally important that the ERP project be appointed to a multidisciplinary team to avoid loss of business vision.

Formation of a project committee

It is necessary to create a committee that represents each area of ​​the company, because this type of technology will have repercussions throughout the organization. The committee should meet regularly to review progress, define strategies, assign priorities, and resolve conflicts. The commitment and participation of senior management are essential.

Appointment of a project leader

This functional leader must perfectly know the organization and the business as such, must have the ability to make decisions and resolve conflicts, and must also coordinate efforts and tasks in different areas.

Engage users

There are key employees in the implementation process, the training of these is very important because if participation in the new information system will be part of the day to day.

Training that goes beyond technological concepts

There are new models that are revolutionizing the way of doing business, which can be applied to make technology a more profitable resource. New tools such as the Internet, currently occupy a very important role in the business field, so it is essential that staff remain trained, not only in the ERP system, but in planning concepts, new terminology, procedures and operating techniques, among others.

Adaptation to existing programs

Each company needs to satisfy its specific needs; however, existing programs and packages are built under world-class standards or practices. In this way, you can find the ideal tool on the market, aimed at each type of industry, to which some small adaptations are made so that it is tailored to each company. It is recommended not to create programs or adaptations that go against the philosophy of the purchased package, because it can cause a great cost when migrating to future versions.

Elaboration of a detailed program

It is advisable to prepare a detailed program with times and responsible on a recurring basis, in order to observe the progress of the project, verify the tasks carried out and the ones to be carried out, as well as identify potential problems. In the elaboration of the work program, key users must participate to specify the times that certain activities will take, such as: data loading, information filtering, time available for training, etc.

Using the experts

The point of view of an external is essential in this type of project. Currently there are different consulting alternatives that provide the necessary guidance to implement the solution. It is important to verify the experience of these sources in accounts of the same size and spin. Also, it is essential to ensure that they have a culture close to your company and that they have a similar methodology.

A new vision

Success in implementing ERP technology is the responsibility of the entire company. It is essential to promote teamwork since, after the ERP is released, the data entered by one user will be used by another from a completely different area. The important thing is that all areas of the company reach the goal at the same time.

Monitoring

It is necessary to realize that the implementation of an ERP system is a process of continuous improvement. The project requires maintenance as new options constantly arise that increase the possibilities of operation, such as new versions, training and periodic reviews with your consultant to get the most out of the solution.

For about 20 years it has been shown that the e-commerce part between companies works properly. However, with the appearance of the Internet, all companies can be accessed. (Trincado 2000)

Currently, there are many companies that, thanks to the use of technological tools with Internet support, have obtained advantages over their competitors and placed at the top of the business career.

Manuel Trincado (2000) mentions, among the best known applications, CRM solutions stand out, which allow managing the direct relationship with the client, so that personalized attention can be given, a direct service online or through Call Centers, You can track the status of your orders, build a focused and personalized value community.

There are also SCM solutions. In this case it is the part that manages the back-office, with which we can manage the entire supply chain, including working with the suppliers of the suppliers, managing inventories, security stock, knowing and forecasting demand and variability, thus same as distribution.

But what is true is the fact that some companies are considering using the Internet as one more sales channel; Others, however, are considering using the Internet simply as a support for their current sales channel, but there are still others that consider Internet sales only.

The transition from the traditional company to an electronic business or using the Internet as a support for its operations, presents advantages that must be taken into account by senior managers, as a way to excel and develop sustainable competitive advantages (Rivera 2000) But it is worth mentioning that an effective solution is one that allows you to carry out transactions with your business partners, as well as with your clients and maintain a relationship with it.

To venture into E-business or E-commerce, it is necessary for companies to take into account that this is a change that is more than technological but cultural, in addition to requiring certain infrastructure.

There are two options for completing the -E- part in the company: the ISPs and the ASPs.

To begin the adventure in the electronic jungle it is necessary to establish a marketing strategy, create a product catalog, define costs and sales prices, the target market and the means of delivery.

You can start by selecting an Internet service provider, you can also use your own development or a ready-made solution, which basically has the product catalog, shopping carts, forms of payment with secure transactions, order processing and analysis of customer information. It is essential to have two basic elements: a reliable hosting provider and a reliable distribution system.

Later we must focus on the location of the virtual store, you can go to a specific offer for hosting virtual stores.

It is essential to consider the security part within the store and in transactions, there are two security standards designed for electronic commerce: SSL (Secure Socket Layer) and SET (Secure Electronic Trasaction). The first one is characterized by not allowing the decryption of the document by third parties, for which it makes use of random keys, with a certificate and a digital signature, whose function is to ensure that only the interested user will be able to decipher the message. SET, for its part, constitutes a secure payment standard based on advanced encryption techniques, the purpose of which is to prepare transactions on the Internet. It works on the basis of public and private keys –which, in turn, are protected by SSL–, which together encrypt the transactions to keep them safe from prying eyes.

As for the equipment needed to assemble these applications, there is a vast offer on the market. However, all equipment, such as servers, routers, switches, etc., can be purchased directly from the manufacturers, or through an ISP or ASP.

In the case of ASPs, they have taken the role of integrators in all matters related to electronic commerce, since their proposal includes guidelines for business software, equipment sales and rentals, dedicated links and web site hosting, among others.

In any case, whether the e-commerce project is large or small, it will always be necessary to have the help of experts and the offer in this regard in the country is wide; it will only be up to each one to contract the appropriate services.

Information Technology (IT) executives in the industry in general, many of whom have had the opportunity to see the implementation of an ERP system for years, are discovering new business rules, fast speeds and growing demand. of its customers thanks to the new era of the Internet.

These users of ERP or planning systems have improved their operations through the integration of their production and administration systems with those of other information technologies and are extending these tools to their supply chain or to their customers.

E-business or electronic businesses came to give speed and efficiency to business. Customers are ready to receive much better service than was offered in the past.

Experts in the field ensure that taking a company to any level, to the next level of ERP, that is, to E-business, requires more than implementation in internal systems. Working with partners in the supply chain who are dealing with the adoption of processes in the company and who are setting the flow via the Internet, that's where the key to the process is.

An integrated supply chain is a prerequisite for meeting the demand for tailor-made products. In fact, this measure is becoming a standard for manufacturers.

Looking at companies in electronic commerce will make their operations more efficient, and in the same way establish new forms of cooperation. Optimization in operations will reduce the costs of both operation, administration and transportation. In this sense, a sustainable competitive advantage will be achieved.

There are better channels of access to current markets, and customers can access the products and services of the suppliers in a simple and friendly way.

Finally and repeating, the orientation of the implantations of these systems must be directed towards the optimization of the operations of the company, focusing above all on customer satisfaction.

4. Bibliographic References