The ERP system

Functions of ERP

After increasing the complexity in business process , ERP has become famous among business community . If we have to define it in simple way. Then we can say that ERP is the new invention of Information technology in which experts make the system for integration of all business processes. For this, they utilize different software and hardware, with this all process of business like , accounting , human resource , production and now marketing are managed . Now , ERP whose full name is enterprise resource planning ( some says enterprise resource processing ) is very scientific technique of Controlling whole business by coordination of all information on shared data base . This technique was firstly introduced by information technology research and advisory firm Gartner, Inc. in 1990

1. With ERP, business can better control over its billing to customers and receivables. With the ability to automate processes. It provides better operational, financial and accounting control over its billing operations and receivables.
2. ERP system can be used for accomplish every task by integrating the information system, seamless flow of information across every department. It is helpful to make automation of every business process.
3. Because ERP works on IT's basic rules 'input -process-output ', So it is also using as management information system (MIS).
4. ERP treats the organization as single entity and caters to the information needs of the whole organization because information is the key resource of every organization to win the competition. ERP system provides accurate, relevant and timeliness information to all department on one software system.
5. Main function of ERP system and softwares is to provide information updated and on real time.
6. In ERP, you can get answer of any query by its powerful query and filtering facility.
7. Now advance ERP softwares packages are providing the facility to manage import –export
8. ERP system can easily use in Government, healthcare, financial, retail and other service sectors .

Key Functions of ERP

1. EDI (Electronic Data Interchange)
2. AMS (Attendance Monitoring System)
3. CAD/CAM/CAE (Computer Aided Design/Computer Aided Manufacturing/Computer Aided Engineering)
4. DMS (Document Management System)
5. CMS (Communication management Systems)

6. SMS (Security Management System)

Advantages of ERP System

In order to understand computer networks better, it would be helpful to have an overview of the applications running on the network. ERP or Enterprise Resource Planning is an important enterprise application that integrates all the individual department functions into a single software application. ERP Systems make it easier to track the workflow across various departments. They reduce the operational costs involved in manually tracking and (perhaps) duplicating data using individual & disparate systems. let us have a look at the advantages and of implementing ERP (Enterprise Resource Management) Software Systems.

1. Complete visibility into all the important processes, across various departments of an organization (especially for senior management personnel).
2. Automatic and coherent workflow from one department/function to another, to ensure a smooth transition and quicker completion of processes. This also ensures that all the interdepartmental activities are properly tracked and none of them is missed out.
3. A unified and single reporting system to analyze the statistics/status etc. in real-time, across all functions/departments.
4. Since same (ERP) software is now used across all departments, individual departments having to buy and maintain their own software systems is no longer necessary.
5. Certain ERP vendors can extend their ERP systems to provide Business Intelligence functionalities that can give overall insights on business processes and identify potential areas of problems/improvements.
6. Advanced e-commerce integration is possible with ERP systems – most of them can handle web-based order tracking/ processing.
7. There are various modules in an ERP system like Finance/Accounts, Human Resource Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse Management, CRM, Project Management, etc.
8. Since ERP is a modular software system, its possible to implement either a few modules (or) many modules based on the requirements of an organization. If more modules implemented, the integration between various departments may be better.
9. Since a Database system is implemented on the backend to store all the information required by the ERP system, it enables centralized storage/back-up of all enterprise data.
11
10. ERP systems are more secure as centralized security policies can be applied to them. All the transactions happening via the ERP systems can be tracked.

11. It is possible to integrate other systems (like bar-code reader, for example) to the ERP system through an API (Application Programing Interface).

Disadvantages of ERP Systems

1. ERP deployments are highly time-consuming – projects may take 1-3 years (or more) to get completed and fully functional.
2. Too little customization may not integrate the ERP system with the business process & too much customization may slow down the project and make it difficult to upgrade.
3. The cost savings/payback may not be realized immediately after the ERP implementation & it is quite difficult to measure the same.
4. The participation of users is very important for successful implementation of ERP projects – hence, exhaustive user training and simple user interface might be critical. But ERP systems are generally difficult to learn (and use).
5. There maybe additional indirect costs due to ERP implementation – like new IT infrastructure, upgrading the WAN links, etc.
6. Migration of existing data to the new ERP systems is difficult (or impossible) to achieve. Integrating ERP systems with other stand alone software systems is equally difficult (if possible). These activities may consume a lot of time, money & resources, if attempted.
7. ERP implementations are difficult to achieve in decentralized organizations with disparate business processes and systems.
8. Once an ERP systems is implemented it becomes a single vendor lock-in for further upgrades, customizations etc. Companies are at the discretion of a single vendor and may not be able to negotiate effectively for their services.

9. Evaluation prior to implementation of ERP system is critical. If this step is not done properly and experienced technical/business resources are not available while evaluating, ERP implementations can (and have) become a failure.