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Before implementing an ERP software the organization needs to analyze current processes, identify non-value adding activities and redesign the process to create value for the customer, and then develop an ERP system package to suit the organizations requirements.
A key contribution of ERP software is the bundled business process knowledge that comes along with ERP software. These processes have evolved over the past two decades of ERP implementation in some of the most well-managed corporations around the world. By adapting to those processes that have proved successful in some of the finest corporations around the world, an organization implementing ERP would get the advantage of these "best of the breed" practices. That is the reason behind the consultant recommendations
Mainly because ERP customization is expensive, time consuming, & constitue challenges to upgrade to the next version.
Higly rated ERPs have the best practice business processes encoded in thier systems. These processes proven the test of time through many users. On the otherhand, companies may need to develop the systems which automate their competitive advantage processes if they have any of those.
This way company recognizes un-used and idle resources and bottle-necks that are hindering the ERP from being in use. By altering the compnay's business practise compnay is able to align the ERP with the business process and also to sweep away the idle and unused resources that are obstructing the compnay from it's activities.
Every home grown business practice may look comfortable and more suitable to meet routine things; however, this may hamper quantum growth if not tuned with the current market trend. Every ERP is designed to take care of followings:
a) Redundancy
b) Leaner process
c) Automated process with effective/correct workflows
d) Simplification of processes
e) Reduced cycle time
f) Improve collaboration during change and implementation process
g) Reduced costs based on miscommunication of change
h) Paper free process
To derive maximum benefits out of any ERP it is highly recommended to amend business practice suitably after careful assessment.
Dear Rehan Qureshi in this context ,I am with you mean the same answere.
I fully agree with all answers
Because ERP follws the IFRS & IAS standards & the company folllowing these standrds will have goood mangement of there resources.
As after two much hardwork these standars are finalized i.e International Acounting Standards. We can say these standards are Benchmark.
The one Reson is that busines is seperate than a person identity which is Seperate Entity Concept so Busines should follow IAS & leave its own customize way of running Busines Accounts.
