Nowadays information represents a huge benefit for companies and its customers; the amount of internal and external data assumes gigantic proportions in every department of each company. But data could be a veritable advantage if this information is well organized and standardized. Some companies had understood that organizing data could be a key factor of success and efficiency. But they are not taking advantage of this situation, and are still overcrowded by information that is neither exploited nor redundant. That's why more managers tend to interest themselves on how they can organize and use all the information within their company to improve their efficiency.
The Entreprise Resource Planning system has for its goal the integration of all data and processes of a company or an organization into a unique database that can be consulted by all employees. ERP systems are built in order to cover all the basic functions of a business. All ERPs are cross-functional and enterprise wide. All functional departments in a company that are involved in operations or production are integrated in one system. This universal application permits the elimination of all independent applications of each department of a company.
Before the development of ERP systems, each department had its own computer system. This causes numerous complications for an employee to find the right information at the right place. This is why businesses and organizations seemed to take enormous time while work could actually be done more quickly. But with the appearance of ERP software such as SAP or Oracle, it had standardized and reduced the number of software specialities required within larger organizations. At the same time, it permitted the development of new functions that can be useful for higher analysis.
As we can see, ERP systems have revolutionized the way businesses are organized. That's why it is interesting to develop in detail how can a company create and implement an ERP system into its office. Furthermore, we'll compare the advantages and disadvantages that can cause the implementation of a such organizational system.
Developing an ERP system is not an easy and fast task to accomplish. Redefining old system to a unique system that can fit to every department requires time, analysis and qualified employees. It is important for a manager to have a vision of what needs to be done in order to implement such system. We'll try to analyze the different components that are required to implement an ERP system in a business or an organization. Regardless of company size, an entreprise technology implementation such as an SAP sofware can change how a company does business and how employees work. By following some concepts, any company can make its investment pay off in short term.
The first aspect a company needs to work on is to define global planning. This planning includes date, budget and also the team that will work on this project. It is important for a manager to fix optimum conditions and deadlines in order to have the most productive work possible.
Tags: SAP sofware, ERP, steering committee
[...] Designing such a model permits to map easily and directly specific ERPs, such as SAP or Oracle. Here is the example of a Car sale Data Model created by a car company. (Source: www.databaseanswers.org/data_models/car_sales). We can see on this data model that customers' details interact with cars description, car manufacturers, financial & insurance aspect. We can see, for example, that customers can have one or more addresses whereas one address belongs to only one customer. In the same time we see that customer can have one or more preferences whereas preferences belong to a unique customer. [...]
[...] What are our aims and our expectation for this system? - What will be our target process? - What will be our organization target? - What will be the forecast profits? But the methods of selection are different depending on the size of the company. Big companies that have already experienced the use of big software will tend to analyze more closely the information system and the profits that one unique software can bring to them. Whereas a small or medium company needs to analyze more closely if they have the skills and the will to completely change their process. [...]
[...] Before choosing such a project, managers should not forget that ERPs systems are here to contribute to enhance performance inside a company and that its implementation will require a global rethinking of all existing processes within a company or an organization The logical steps to follow: Identify the real need for the company to implement an ERP system. For that, the managers need to answer these questions: - What are our external needs? Market pressure? Competition? Customers? - What are our internal needs? [...]
[...] Foundations of a mature structure An ERP implementation within an organization or a company that is not mature enough can be a real advantage for them in long term. The use of this software can compel them to approach work in a mature way. With ERP software, these kinds of companies will have the foundations to grow in the mature way and as a result enable them to modify step by step the company culture and in term, transform their structure into a real mature one. [...]
[...] That's why it is interesting to develop in detail how can a company create and implement an ERP system into its office. Furthermore, we'll compare the advantages and disadvantages that can cause the implementation of a such organizational system. The logical steps in a ERP system development Developing an ERP system is not an easy and fast task to accomplish. Redefining old system to a unique system that can fit to every department requires time, analysis and qualified employees. It is important for a manager to have a vision of what needs to be done in order to implement such system. [...]
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