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Factors of success and failure of erp systems

Anonim

As we all know, ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems are already necessary for the new development and way of doing business in the world.

In some way, the systems implemented in companies manage to integrate with them and benefit them in an extraordinary way, or they can be a failure and frustration for others. This type of results is due to certain factors, which as a reason for this comment and compilation we will try to point out to avoid that the implementation of a system fails.

The current technological equipment can go back to the primitive bill of materials and from there to the MRP, that is, to the explosion of materials. They were followed by the MRP II model, which involved suppliers and enabled the administration of the supply chain management. Then the DRP (distribution resource planning) and ERP were added, and to a later date, business intelligence, e-business (for PeopleSoft, e-store and e-procurement) and CRM.

Other acronyms for this complex structure, almost always backed by specific products, are supply chain optimization (SCO), enterprise resource optimization (ERO), and enterprise performance management (EPM). It is not difficult to get confused in this tangle of concepts, acronyms and tools, because it is also common for different developers to use their own definitions.

The recommendation for the organization is to start by analyzing your current situation, to decide later on the best solution, concisely and without following a pre-established order of priority:

  • What type of information does the organization need? What training did our employees receive? Is the information received appropriate to our type of operation? If yes,Do our professionals make use of these concepts in their work? Is teamwork and interdepartmental communication essential for our type of business or can each department act independently? How can we benefit from the new system? Are employees prepared? to use the necessary resources? What type of training should I provide for the proper use of the tools (not only training in the use of the system but also specific development processes for each person in their area of ​​action)? Should I do the training simultaneously with the implementation of the system? What is the necessary adaptation to ensure a successful implementation and according to the identified needs? Select the system that best suits the needs of the organization.

Beyond ERP systems, software is becoming the tool that manufacturing companies will need to control all their business processes.

With this panorama of processes and approaches, the companies have done is go back to their origins, project their strategy and work in their supply chain. The examples found in the steel industry illustrate with their results. BHP Steel is the first company to build an E-Steel with the goal of bringing all its sales online and is negotiating with other steel companies to build a private exchange. Last year, it signed a contract with Ford Motor Co. through which it will help to manage the business process in an automated way (e-enabling) once the transaction has been made (Ford buys about 5 million tons of steel and products related to steel annually);The importance of this arrangement is better understood if it is known that the system will handle more than 170 business processes involved in said transaction: material and financial information, logistics flows and order management that were previously done manually. The strategy is aimed at creating private markets that connect in order to grow together.

In the same steel industry, MetalSite offers comprehensive services online for users of all sizes: exchanges are capable of offering comprehensive services including banking and logistics; The strategy focused last year on connecting the supply chain by offering partner companies more information about other inventories and order status - integration is valuable. The company carries out 6,000 sales transactions per month offering 2.2 million tons of steel (2000). For CarTech, supply chain management is based on advanced planning and scheduling software.

Their tendency is to use SCM's vendor applications to fully plan production and follow in the footsteps of their suppliers. By launching its online sales, its customers were interested in purchasing other products different from those offered by steel (such as aluminum) and the company has entered into alliances with different service centers, so it currently covers 43 different types of material.

Some of the companies that have successfully applied Sap in Mexico are:

BMW, Mercedes Benz, WV, Banorte, Roche, IBM, Apasco, BYK, Samsumg, Siemmens, Fernández Editores, PEMEX, Femsa, Jumex, Lucas, Procter, Unilever, Electra, Gobierno de Guanajuato, Delloite, CFE, Avantel, Axtel, Telmex, etc.

Companies that in their common denominator applied the aforementioned guidelines, and those that did not, such as Hershey inc, only invested large amounts of money in the hope of integrating all the information systems of their company, but as a result of the lack of analysis, all work went to waste.

Bibliography:

¿MRP, ERP, CRM, SFA, Call Center, Help Desk, etc. Solution or part of the problem?

Manufacturing software From raw material to customer

SAP Mexico.

CRM - from tactical to strategic

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Factors of success and failure of erp systems