At this time, we will talk about Understanding Enterprise Resource Planning (ERP)
What is Enterprise Resource Planning (ERP)?
Corporate resource planning, or often abbreviated as ERP from the English term Enterprise Resource Planning, is an information system intended for manufacturing and service companies that play a role in integrating and customizing business processes related to operations, production, and distribution of the company (Wikipedia, 2010).
Enterprise Resource Planning is an integrated information system technology used by world-class manufacturers to improve their performance. ERP is a system, both as a planning system and an information system (Indrajit and Permono, 2005).
According to O’Leary, ‘ERP systems are computer-based systems designed to process an organization’s transactions and facilitate integrated and real-time planning, production, and customer response. In particular, to have certain characteristics will assume ERP systems’ (Indrajit and Permono, 2005).
Erp systems have the following characteristics:
- Firstly, A client-server environment is designing ERP software packages, both traditional (desktop-base) and web-base.
- Secondly, Erp system integrates the majority of existing business processes.
- Thirdly, Erp system processes all transactions of the company’s organization.
- Forthly, ERP systems use enterprise-scale databases for data storage.
- Last but not least, Erp system allows users to access data in real-time.
Successful Implementation of Enterprise Resource Planning (ERP)
Several things determine the successful implementation of an ERP:
ERP: Business processes are mature.
This is an absolute requirement for a company that will implement ERP. A company will not implement ERP that does not have a straightforward business process.
Change Management is good.
Undeniably, changes in “habits” in the company will always following by the implementation of a system. Change management is indispensable to provide education to users, operators, or anyone who will be in direct contact with the new system. It must be explained why this company needs to change its system, how effective this new system is for the company, what problems in the old system can be solved by the new system.
An ERP implementation within the company will take a lot of time and effort. Commitment from company leaders to users who will be in direct contact with the system, absolutely indispensable.
Both internally must carry out cooperation and between the company and the consultant who conducts the implementation. Consultants and users have put together a vision for the success of this implementation.
ERP: Good Consultant
The experience of consultants who conduct implementation is also very influential in a performance.
That’s all about Understanding Enterprise Resource Planning (ERP).
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