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Importance of erp systems in corporations

Anonim

Abstract

The paradise of corporate management, with the improvement of administrative and production support processes, began to materialize. At least that was the dream of someone who invested or has the idea of ​​buying a management package. It is true that there are a large number of ERP projects that do not evolve due to a series of problems, many of an internal organizational nature, but others end up being efficient and decisive for the evolution of business.

Content

Among the most obvious changes that an ERP system provides to a corporation, without a doubt, is the greater reliability of the data, now monitored in real time, and the reduction of rework. Something that is achieved with the help and commitment of the employees, who are responsible for systematically updating the data that feed the entire chain of ERP modules and that, ultimately, make the company able to interact.

In this way, the information travels through the modules in real time, that is, a sales order triggers the manufacturing process with the sending of information for multiple bases, from stock (storage) of supplies to product logistics. All done with organic, integrated and non-redundant data.

To better understand how this works, ERP can be seen as a large data bank with information that interacts and provides feedback. In this way, the initial data undergoes a transformation according to its status, such as the sales order that becomes the final product located in the company's warehouse.

By undoing the complexity of the monitoring of the entire production, sale and billing process, the company has more subsidies to be planned, reduce expenses and rethink the production chain. An example of how ERP revolutionizes a corporation is that with better management of production, an investment, such as a new logistics infrastructure, can be rethought or simply abandoned. In this case, by controlling and better understanding all the stages that lead to a final product, the company can get to the point of producing smarter, faster and better, which, in other words, reduces the time that the product remains. standing in the stock as you can see generates many advantages.

The decision also receives another dynamic. Imagine a company that for some reason, perhaps a change in safety regulations, needs to modify aspects of the manufacture of one of its products. With ERP, all corporate areas are informed and prepare in an integrated way for the event, from purchases to production, going through the storeroom and even reaching the marketing area, which in this way can have the information to change something in the advertising campaigns of their products. And all done in much less time than would be possible without the presence of the system.

According to the company, it is possible to direct or adapt the ERP for other objectives, establishing priorities that can be both in the production chain and in support to the sales department or distribution, among others. With the integration capacity of the modules, it is possible to diagnose in the more or less efficient areas and to focus on processes that can improve performance with the help of the systems package.

The greater the integration of the ERP modules, the more efficient the processes will be. These can make a difference when it comes to serving and even retaining a customer. However, how do you know if a corporation is ready to use an integrated management system? The answer can evolve from the extremely complex to simpler approaches.

To find out if a company is suitable to work with an ERP, it is interesting to have the external help of specialists in the matter, especially consultants. They will evaluate and radiograph the company and identify what needs to be done so that the system does not collide with the internal organizational culture, producing studies that indicate possible actions and adaptations. It is essential, for example, that a team of internal professionals and from different departments participate in the project for its definition.

Normally, some internal processes need to be redefined or redesigned before the ERP system actually goes into operation. In addition, just as the company needs preparation to receive the system, the software must also undergo adjustments in order to become compatible with the reality of the corporation, its objectives and profile. The union must be as perfect as possible, but just as in human relationships, course adjustments and corrections are inevitable and must be implemented in the most transparent way possible.

It is interesting to note that many times the most sensitive and most committed department when purchasing an ERP system is the human resources department. People, their functions and characteristics are a fundamental part of the whole process.

The choice of ERP goes from the pure and simple functionality to how was the attention of the seller, market references or even a better marketing performance of the supplier. However, the ideal is to do a detailed investigation that can involve from external sources - Internet, sites and publications of specialized information, companies of the same segment or of similar profile and consultants - to investigations made by information technology professionals (IT), going through the main areas of the company, with their motivations, demands and ideas.

Again, the presence of a consultant or specialist can reduce the distance between the idea of ​​acquiring an ERP and the conclusion of the project, but it is not essential since you have a dynamic IT area that can be dedicated exclusively to this task. Simultaneously with the evaluation and understanding of the processes to identify if the company is ready or not for ERP, the products available in the market and the approaches can be investigated.

Never leave the responsibility of choosing the system to be installed to a third party, since the company is the one who knows your day-to-day life and needs. In the 90s it was not uncommon to find companies that started using ERP out of sheer idiom and, instead of a careful process surrounded by reliable information channels, speed was the keynote, which was expensive.

The economic aspect counts a lot, but it must be considered not only from the perspective of cost and benefit as well as investments already made. A company that has an efficient accounting system or human resources and that has not yet been amortized can evaluate whether it is worth buying the equivalent module of the ERP system, it is important to fully exploit the characteristic of modularity of the software, evaluating the acquisition of the software. whole package or in parts and also if the system that the corporation owns can be adapted to operate in conjunction with the business management software, and at what price will all this be done. Need, adequacy, and costs must walk together.

Many times, a product composition can also be interesting. An example is the Brazilian air transportation company Gol. With no time for prolonged analysis due to competition, the company entered into activity supported by a business management system of its controlling group, the Áurea holding, but it did not take long to identify the very particular profile and demand. Through a report made in 60 days by a consulting firm, Gol selected the Oracle / RM Sistemas duo as the corporate platform.

The technological base - applications in three layers with the Oracle database - had already been prescribed by the IT team, which went to the market to identify the ERPs that met the proposed prerequisites. In that place, two options remained that were presented and approved by users. Both were installed. The human resources (HR) department preferred the RM systems package and the finance department chose Oracle Financial.

However, this combination is not always possible, either because of the corporate profile or because of the incompatibility and cost of the product. A corporation may have its strategy as the primary motivator of choice. In it, the desired management levels are explored and how products and services can benefit in the process. The trade-off is studying how ERP packages can provide it.

conclusion

It is important to understand that ERP is not simply software that you buy, install, and use like Windows or a computer game. More than that, it consists of a revolution that involves all internal processes and must be preceded by an extensive and, many times, delayed reassessment of all departments, their functions, decision-making mechanisms and forms of action. However, it is not worth waiting for the system alone to change business management. It is necessary to bear in mind that it is an important and decisive tool, but who commands it, the way in which the data is inserted and how the information is subsequently directed, are aspects of the utmost importance.

Bibliography

1 Computerworld Brazil

2 Livro: E-Business and ERP - Transformando as Organizações (E-Busineee and ERP - Transforming Organizations) Author: Norris, Grant; Hurley, James R.

Editor: Qualitymark

Importance of erp systems in corporations