Enterprise Resource Planning (ERP)
From OrgChart.net
Contents |
Overview
Over the years, Enterprise Resource Planning (ERP) has become critical to the success of an organization, arranging the flow of information in a seamless manner upon integration of its various units, departments and subdivisions through an umbrella system designed to suit its needs. ERP has the potential to transform an organization and catapult it into the big league. Since it is a long and costly process, it is vital to make sure that the interest of the team is sustained, that constant development is a given and adaptation along the way is an ongoing process.
Since the stakes are high (the implementation phase itself could last up to three years in some cases), it is best if measures are taken to get the maximum mileage out of the investment. Many ERP projects end up being unsuccessful because some critical aspects are ignored.
Steps Before Implementation
Before implementation, it is of utmost importance to understand the needs of an organization. It is crucial to have an in-depth analysis of the legacy system and outline the requirements, listing even the finer details. Since the integration system will be expected to serve the purposes of the organization for at least two decades or so, not only the immediate and apparent needs but also any anticipated needs should be looked at. It is only after the requirements have been chalked out in detail that the vendor should be selected carefully.
A suitable ERP system should not only address the needs of the organization but have inbuilt capacity to leapfrog the organization into modernization in its true sense. The program should be able to correlate growth strategy, the current processes and the intended outcome to deliver scenarios enabling faster decision making and greatly reducing the margin for error.
During Implementation
ERP systems enable data migration, a function that requires careful planning, for it is during this stage that the datasets for sales forecasting, order tracking, revenue tracking etc., will be generated. Use of advanced charting software that effectively harvests data can provide firms with a valuable advantage. Data processed thus is available as useful information across the organization, doing away with the time delays caused earlier simply by collecting information from various departments.
Manpower Resources
Once the ERP system is implemented, workflow is automated and many repetitive functions are weeded out. New processes require a different staff make-up and so would the job descriptions and skill sets required for maximum efficiency. With charting software, various permutations and combinations of existing employees can be generated to show their suitability in the new environment. It can provide a 360 degree view of the competencies of an individual and where they can fit best, to the advantage of the organization. Employees, on the other hand, have the advantage of clearly seeing career outcomes and paths that could be charted. Selection of teams for specific tasks becomes much easier.
The reporting function can be customized to give better effectiveness. Unnecessary information can be simply dropped, retaining the real essence.
Charting software can be used as a part of Business Intelligence (BI), where it cleverly identifies patterns in datasets: the tools of BI being Key Performance Indicators (KPIs), alerts and exceptions, Scorecards, Dashboards etc.
Since the ERP implementation is intended to serve for a long time, organizations should aim for maximizing benefits from it.
