Today's immersive globalization means that organizations are operated on a global scale, with multiple manufacturing, distribution and partner sites located around the world, therefore ERP applications were planned for the management and optimization of the supply chain concept..
Summary
These allow the integration of different topologies of information technology (IT) and electronic data transmission protocols (EDI), through companies with an excellent degree of flexibility, the potential of this type of systems being the capabilities of an organization international with different business units that use different operational and production processes, also using different languages and currencies. But the answer of ERP systems is that they are easily configurable to the particular structure of each organization, supporting multi-site, centralized or decentralized operations.
This solution helps organizations to integrate all the information through their interrelated modules. For the implementation of an ERP, consulting companies are based on processes and methodologies proven in some industries and this is better known as "best practices". Putting this implementation into practice leads organizations to make an organizational change and creates a new way of doing business which implies integrating and optimizing company processes.
ERP is a way of modeling the flow of information in business, since it benefits the exchange of information between its divisions. ERP is not just any system, it is a network of all the organization's systems, including administrative tools, production, etc. They are applications that are well established in the business world and have a great present and a promising future. Those who consider themselves experts in these subjects consider that in the coming years, practically all companies dedicated to manufacturing will be using some ERP.
Content
The main reasons for installing ERP software are two: the need for more accurate and up-to-date data, and comprehensive and reliable information, as well as the need to simplify and unify the procedures of the different departments.
These corporate resource management systems have financial functions that integrate business information and management processes:
1) Improved communication with investors
2) Collaboration with customers and suppliers in payment and settlement activities
3) Reduction of transaction costs and increased operational efficiency
The importance of an ERP is emphasized when you identify increases in company efficiency, which are clarified in the following points:
1.Integration of information between different areas
2. Information available and immediate for decision making
3.Increased productivity
4.Improved response times
5.Rapid adaptation to changes
6.Scalability of the system
7. Data integrity
8.User-defined security for information management
Without an ERP, the aforementioned currents could not be had, for this reason it is vitally important to understand these systems and be able to continue in the world of globalization.
After understanding the ERP tool, we have to enter the stage of investigating and selecting the appropriate supplier for our operations, or making a plan to seek a development tailored to the company, this is where a global analysis is carried out, analyze from the mission, vision, and business objectives to make a comparison of where we are going and where we want to go. Elements to consider:
1) Developing a custom tool is usually more expensive than buying it. But you have to be careful, because if you don't have infrastructure it can be dangerous and more expensive.
2) On many occasions, the software via development of the company is left half or takes much longer than is estimated in the planning from the beginning.
3) For any implementation, it must be previously considered that you have the necessary support to carry it out and have sufficient technological structure to support this tool.
Without an ERP, the aforementioned currents could not be had, for this reason it is vitally important to understand these systems and be able to continue in the world of globalization.
The implementation of an ERP tool for the organization is an entire organizational and learning process, the study of which requires adequate research instruments. Next I will mention a research process called SHERPA (Systematic Help for an ERP Acquisition), a methodology for selecting ERP Systems for small and medium-sized companies.
SHERPA is a useful method for managers or consultants involved in ERP system selection processes and involves several steps that are mentioned below:
1.-Study the strategy and business processes.
It involves a global analysis of the organization about its processes, in addition to identifying its strategy in its business form.
2.-Decide to adopt an ERP or not
It includes the processes of the organization, reviewing the organization, evaluating the different options in the market and selecting the most appropriate one.
3.-Search for candidates and remove the first filter
In the search for candidates we have to begin to review what we need, what are our minimum requirements, study the ERP market, visualize the different proposals in the market, review and approve them.
4.-Analyze in detail the candidates to carry out a second filter
Refine evaluation criteria, evaluate candidates in detail, carry out a second selection of candidates, in addition to their respective review and approval.
5.-Analysis and Demonstration of candidates, in addition to visiting suppliers.
At this stage, the aspects already in their operation will be reviewed, at first the providers explain the operations that their tools carry out but in practice it is very different, so in this stage demonstrations of the benefits of ERP's are presented.
6.-Final Decision, negotiation and planning
At this stage, the best provider for the organization is determined, and contract, policy, license issues, among others, are reviewed.
The entire process of selecting an ERP can be considered a very complex social process due to:
a) Participation of people in various organizational responsibility centers.
b) Time consumed in meetings and decision-making, in addition to your investment and available resources.
c) Specialized technological domain.
d) Cost or investment in human capital.
The ERP tool is a reorganization of the company in its processes and its way of handling its information within the organization, for this reason, it forces us to change and see in another way how business is carried out and managed. This process so marked in the organization will transform it into an intelligent company and will allow it to obtain competitive advantages in its favor to position itself in the market in a better way.
"An ERP solution does not constitute any risk for the company", a tool such as ERP changes the operation of your business so that the entrepreneur has full control of his company, makes decisions on time and is more competitive, but we must not forget That the acquisition and implementation of an ERP tool is not something so simple that it will transform companies from one day to the next, we must be aware that it requires a great effort from the entire organization to achieve success, which largely depends of human capital, as well as the organization, that transmits its needs to those in charge of the implementation and that in turn there is a formal commitment on the part of senior management to minimize possible problematic situations.
Due to the above elements, the selection of the right tool for the organization becomes very important and it has to be worked on in great detail.
Bibliography
The Economist, Technology Supplement (2002, August 19) ERP, backbone of the business
Jarrar, YF, Al-Mudimigh, A.; Zairi, M (2001, November) ERP implementation critical success factors-the role and impact of business process management.
Illa, XB; Franch, X.; Pastor, JA (2000, Julio) Formalising ERP selection criteria
Ghosh, S (2002) Challenges on a global implementation of ERP software
Estay Niculcar, Joan A. Pastor Selection of ERP in small and medium-sized companies with a Research Project
Christopher Koch (February 7, 2002)
CIO, Enterprise Resource Planning Research Center
Scott Leibs, (February 1, 2002)
CFO Buyer's Guide: ERP Software
