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ERP is an abbreviation of (Enterprise Resource Planning)
It is an electronic Integrated system which integrate all company departments thru a Central Data Base that collect all generated data from various departments. Then it can be analyzed and submitted in the form of reports to Top Management, Managers and Users. These reports can be generated instantly and utilized in developing company goals,objectives and strategies. In addition to assisting companies to make effective decisions that can help in achieving company goals , following up and evaluating performance at any time and every phase of the company operating process.
There are two factors to be considered when planning to use an ERP system.
First one is related to the system itself such as;
- The functionality available compared to your need. You do not want to pay for a Rolls Royce while you can do with a Mercedes. Also,type of business line ( Production, Construction, Retails etc.)
- Cost of the System (License, Implementation and No. of Users)
- Operational Cost like Enhancement and Support etc.
- Software /Hardware requirement.
The second factor is related to the Project Implementation such as;
- Management Commitment
- Very Good project Manager and Team
- Reasonable Implementation Time
- Clean Data availability
- Strong Training Program from Vendor
- Experienced and professional Implementation partner
This is in summary of what you need to take in consideration when using ERP System
ERP is enhanced resource planning that automate all organization activities to a well-known standards and link each process to the integrated system. The best result can be obtained through a proper process mapping of each activity in the organization that will form an integrated system which will link all the processes together and the impact on the final financial statement. The fruit of the system is its capability to generate the desired reports with a click in the required time.
The main modules in an ERP are the HR, Finance, Supply chain and production. There are different companies that offer an effective ERP such as SAP, Oracle and Microsoft Dynamics. Each one of them has advantages and disadvantages. Also, level of investment should be taken into consideration in terms of money, people and the system.
Top Answer : Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.
The main things when considering the use of an ERP system are :
- Marketing
- Manufacturings
- Commerce
- Supply
- Finance
- Distribution
- HR
Naim ,
Hello Ms. Zain Khater,
You may find this useful.
Please, accept my best regards.
Amr
