Role of erp in organization

Here is why businesses turn to ERP:

ERP Programs allows organizations to structure their redundant and monotonous tasks through automation and integration. This allows businesses to streamline most of their back-office functions including accounting, HR, customer relations, sales, inventory among other areas of their business within a single platform.

Most businesses look at ERP as merely a software which restricts them from digging into the wide array of benefits it can present. A simple shift in perspective i.e looking at how the software can be strategically implemented can help broaden the scope of it’s application and can yield astonishing outcomes.

 ERP Changes the way your businesses operate, for the better!

 When organizations grow in volume, workload or even in terms of staff, some fail to keep it intact and unified from inside due to lack of a structure in place. There are a multitude of reasons this could happen, ranging from lack of communication to allocating majority time to paperwork than actually focusing on the business, this is when ERP can help you rise and get over these issues by harmonizing the processes in your organization.

1.       Automates your redundant processes- Suppose you are part of the sales team, you reach your target of 100 products for the day, which is then communicated across to the delivery team to ensure when the items can be dispatched who will then coordinate with the manufacturing unit to ensure the item availability - The whole process can be automated which would then look something like this: You sell 100 products and update the system which is shared collectively, the ERP then issues work order for other departments while also ensuring item availability. A simple tweak as such in the operation chain can ultimately help save time, energy, money for the business and ensure proficiency.

2.       Provides Mobility - With a ERP system in place, data and information across all the departments in the company is streamlined at one place on a platform and can be accessed mutually by people at their convenience. This helps the business save both time and resources while assuring quality work within the deadlines. Since most ERP systems today are centralized it also offers the ease of access from anywhere in the world which works only to your benefit.

3.       Unity in user interface - Traditionally each department generally had a suite of software that is dedicated only and explicitly for them, which means multiple software’s for each department which might create a trail of chaos when it comes to data transfer or even cross-user operation. Sales team will have no expertise in software that Finance might use and vice-versa. ERP completely eliminates this complication with implementing a unified interface that remains same regardless of the department using it, this in turn saves time and helps avert exerting workflows and the aftermath of it.

ERP Implementation challenges and how you can overcome them. 

  HP - The billion dollar computer giant, US Air force, Avon, they all took a hit due to lack of a solid strategy in place. The following article lists principals that will help you avoid these slippery slopes and ensure you reap the maximum out of this software! 

ERP failures do happen and the fact that these software implementations take so much of a company resource that when they go downhill the results could be outright devastating and at times can end up sucking the morale out of the employees. 

This might in still a sense of doubt and uncertainty among businesses that might be looking to implement ERP.

According to case studies that were done on companies that faced blunders after implement pursuing these software’s, lack of experience in medium sized businesses to incorporate the software effectively.  

Businesses are increasingly become more ERP savvy with time and improvements within the software itself, however these company-breaking errors usually transpire during the inception, way before these companies establish the basic know-how of the software. The beginning stages i. e where the strategic planning takes place, a plan-B incase the something goes south is pivotal and can help avert any inconsistencies with the software in future.

1. Prioritize - What is it you are trying to achieve with the ERP?  

Take a piece of paper and list down the 5 priorities and expectations you have with the software, ensure the software you select meets all your requirements. Your plans are not bulletproof, so always have an alternative ready in case one gets shot down. 

2. Clarity among staff and clear communication - The ground rule in making any project successful is sturdy communication across all teams involved and ERP isn’t an exception. 

Everyone from the management, project leads to the staff should exchange knowledge during the implementation of an ERP. This also helps the management understand and address the concerns employees may have and support it with a hotfix in the very beginning itself. 

3. Fear of change - It’s human nature, we don’t like change, we tend to get emotionally connected to things or too comfortable which could be a problem. When implementing and ERP management should effectively communicate why it is a step forward from their traditional style of operating and highlight the benefits that the software can deliver.                                                                                                                                                                                              
4. Quantity over Quality – Oftentimes companies are dazzled by the long list of features that an    ERP software comes with but fail to take into account it’s suitability with their organization      which often results in blunders and end up doing more harm than good.                                                                                                                                                                                                                 
5. “Go-Live” and “Go-All-In” – Implementing an ERP is an elaborate process, many a times organizations try to reap all the promised benefits immediately after going live which is a generally known to result in downfall. Instead companies must adopt a streamlined and step-by-step application of the software with keeping in mind end-user requirement and observing closely through out to find gaps in the system and avoid any disruptions.                                      
6. Management Involvement – Configuring a budget for the software isn’t the end of responsibility for management. Ensuring their employees readjust to the change, handling lash-back from staff and effectively communicating the long-term benefit of the system in place is just as crucial.                                                                                                                                   
7. Post Implementation planning – Would you buy a computer and use it till it breaks apart without keeping it up to date? No. That would cause your system to slowdown; put it at a security risk and much more. The same analogy can be applied to understand ERP systems also require regular maintenance and monitoring to keep them from being outdated and going obsolete.

In a nutshell:

To sum it all up, each organization is unique and requires an ERP system that can cater to its customized requirements. Before key decisions on implementation of software is made, organization size, business goals, budget for maintenance etc. Being precise on what exactly you expect out of the ERP software can help create a clear path towards your end goal.