Enterprise Resource Planning (ERP)
Each business organization is diversifying, expanding and touching new geographies. The organizations are sub categorized on a number of factors as on the basis of departments- Production, supply chain, sales, marketing, human resources, on the basis of geographic markets, type of customers, etc. It becomes very difficult to exchange and manage information, monitor, control, and thereby review the departments & sub departments individually and take a consolidated decision. The top management is interested in the information flow so that decision making can be facilitated and better administration is possible.Enterprise Resource Planning is the solution for this. ERP is an integrated set of software which consists of applications related to different processes of the organization and in the end shows the big picture of major interrelated activities of the business of how each department’s performance is contributing to achieve the business’ goals.
ERP helps a business to better gain information, analyze the results and hence leverage their core competencies.
Developing the ERP solution for a Business Enterprise:
- Need Analysis- In the first step the experts from the business unit and ERP developer meet and analyze the problems faced by the business and conduct a need analysis of whether the ERP is the solution to the problems posed. The technical consultant also helps the business understand what the ERP can do and what it cannot.
- Business Analysis- after the need for an ERP solution has been figured the business experts helps the technical consultant to understand the business processes at all levels from the top to the ground level. Physical working knowledge of the system is essential at ground level and how information flows from top to bottom and results from bottom to top.
- Business Process Consultation- after the analysis the technical expert develops an ERP model for the business and consults the business expert for the various modules and features.
- Departmentalisation for creating modules and sub modules- The ERP is further categorized into modules and even further sub modules.
- Customisation- The modules for each process is balanced with the physical working. Each department functions in its own way so a customised solution is recommended.
- Information flow- The system infrastructure is designed for Information storage and its direction of flow.
- Authentication and securitization- for the information retrieval the various levels are designed for sharing and security of the information flowing in the system. System Administration is designed and provided. Also the security features are added so that the data does not flow outside the system.
- Consolidation and Analytical Tools- All the information is consolidated as per need of different departmental heads- information about various departments, directors- of their area of expertise and top management- the big picture of interrelated activities that comprises the organization. The analytical tools are created to better and efficiently review the business in all.
- Testing the package- the testing initially takes place on the developer’s site with business expert consultation and after the testing the package is installed at the client site and tested.
- Training- after the successful functioning of the installed package the developer provides the training of the usage of the package to various departments as per the need.
- Feedback and Maintenance- the process doesn’t end at the final delivery of the ERP package. It’s feedback, maintenance and upgrading is a continuous process.
ERP software package includes the following:
- Database management for all departments and business processes
- Vendor/supplier management
- Sales-dealers management
- Inventory Management and Product Management
- Logistics and Payment
- Planning, Scheduling and Costing at each level of organization
- Performance management
- User Kiosk for customers, vendors, employees and administrators
- Consolidated information at every desired level
- Analytical tools for viewing the performance of business activities, status of work and achievement of goals such as dashboards, scorecards, mapping, graphs etc.
- Communication management for within and outside the system.
- Bundle of Security software packages for system,network and data protection.
Thus ERP forms an end-to-end business solution for your organization by providing the real-time information. Consolidated data provide the possibility of error reduction and removes hind sight problems helps in business forecasting and planning.