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How To Make ERP Complement Your Business

By Exforsys | on December 15, 2006 |
ERP Tutorials

How To Make ERP Complement Your Business

To successfully utilize ERP, a company must be skilled in making the program complement their business. Vendors who sell ERP products have worked to solve a number of problems over the last few years, and one of these problems is scalability. In addition to this, security issues are also important, as well as the integration of the organization.

One of the most powerful aspects of ERP is that it allows thousands of workers to access the same database, and they are not simply limited to being a the headquarters of the company. Authorized users can access this database from anywhere on the planet.

When ERP was first introduced, the goal was to integrate the various elements of an organization into a cohesive whole. However, this has changed over the years, and companies are now using ERP for a number of different applications, and some of these applications are product planning, inventory, and logistics. While all of these elements have distinct functions, they must all be integrated with the central ERP system. In the last ten years, the cost of ERP has continued to decrease, and this has allowed more companies to adopt it. The process of properly implementing ERP requires companies to spend a great deal of time training their employees. In addition to this, a number of new guidelines must be introduced.

To get your business to complement your ERP system, you must be willing to conform with the software. There is a great impact that will occur when ERP is presented for the first time. The process of a company changing the way the operate in order to conform to ERP can be very challenging. In some cases, this process is much more challening than the technical barriers that must be overcome. It should be noted that not all ERP systems have rigid structures. In order for vendors to compete, they must give their applications a certain degree of flexibility. At the same time, it is important for a company to be able to adapt within a short period of time.

If this does not occur soon enough, the project can become a failure. There are a number of companies that have found themselves in a no win situation. When this happens, a company will be faced with an event where they will need to change their processes to adopt to the software, or they will have to invest in connectivity programs. Both options may have severe limitations. In addition to this, the advent of ERP presents a number of other challenges to companies that wish to utilize it. A number of organizations have realized that in order to stay competitive, they must make the change from a company that is integrated in a vertical manner into a company that is comprised of multiple entities.

Many experts believe that this change may lead to some systems becoming obsolete. A number of studies suggest that corporations are moving away from internal structures that are focused on applications into institutions that are heavily integrated and driven by external factors. A number of people have presented new ideas about how an ERP should be used. One of the industries that is strongly aware of this changes are those that deal with Information Technology. To solve many of the problems that are present with contemporary ERP solutions, many in the IT industry are placing an emphasis on creating messaging pipes.

One thing that many companies realize that it is very tedious to create an end-to-end process by merely connecting various applications.

The biggest problem with these programs is that they are limited by their approach, which in most cases is either data centric or bottom-up. The obvious problem with these approached is that they require the business to conform to the needs of the software. The numerous technological layers that already exist within the company make introducing an ERP system very complex. When you combine these issues with the cost of the technology, it is easy to see why a number of companies have failed when attempting to implement it. While it is possible to use ERP successfully, it must be done in connection with other systems. When I use the term "other systems" I’am referring to things such as Business Services Orchestration.

« « Critical Chain Within Project Management
How ERP Can Be Used By Smaller Businesses » »

Author Description

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Editorial Team at Exforsys is a team of IT Consulting and Training team led by Chandra Vennapoosa.

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