ERP Programs: The Evolution

An overview of the enterprise resource planning (ERP) system integrates the internal as well as external accumulation of the data throughout an organization including the finance, accounting, manufacturing, sales, services, customer relations management, etc. 

The ERP program automates the activities of the management regarding information with the help of its integrated software application. The ERP not only streamlines the flow of information between the various functions of an organization, it also takes care of the connections established with various stakeholders. 

The super user-friendly enterprise accounting software is one of the several multi-billion dollar industries that produces a gamut of components to support businesses. 

The enterprise system inherits a very complex package of software which offers the capability for integrating data and the processes throughout the functions of an enterprise.

While previous versions of the ERP system used to focus extensively on large multi-scale enterprises, now even medium scale enterprises have realized and started deploying such inclusive systems.

The organizations consider ERP systems as an incredibly vital tool for their organization, as it plays a key role in streamlining transactions as well as production, without any flaws. 

The enterprise resource planning systems can work with a number of computer hardware and network configurations by employing a database for depositing information.

Expansion

The addressees of the ERP system experienced a rapid and strong growth during the 1990’s. This is because from the year 2000 onwards, the introduction of Euros, as well as the emergence of IT became a hurdle in the systems of legacy.

A lot of companies grabbed this opportunity for ERP integration and made timely implementations with great outcome.

The initial focus of the ERP system was on the automation of back office functions which didn’t really affect the customers directly. 

Meanwhile, the front office functions like the customer relation management (CRM) dealt with the customers directly or an E-business system like, E-commerce, E-government, E- telecom and E-finance and even the Supplier Relation Management (SRM) made direct customer relation easier, as internet simplified the communication process tremendously.

Launch of newer versions

ERP 2nd was introduced in the beginning of the year 2000. It dealt with web-based software that could provide the employees as well as its partners (like suppliers and also the customers) with real-time access to the ERP system. 

The role of ERP 2nd expands the optimization of traditional ERP resources with the processing of transactions as well. Instead of just managing, buying and selling, ERP 2nd leverages the information within the resources that are under the realm of top level management.

A few years later, it was found that the product was also beneficial in enabling the enterprise to strike strategic collaborative partnerships. ERP 2nd was much more flexible than the 1st generation ERP.

Rather than confining the capabilities of ERP inside an organization, it went beyond the purview of conventional corporate norms to interact with the other systems and platforms.  The enterprise application suite is a substitute for such a robust system.

Functional areas

The ERP system covers the following functional areas. In various ERP systems, these functional areas are known and grouped together as ERP modules:

Financial accounting

General ledger, tally (you can crack and track tally ERP with the help of tally ERP), fixed assets, payables, receivables, cash management, financial consolidation.

Management Accounting

For budgeting, with very good costing.

Human Resources

Recruitment, training, evaluation, 401k, payroll, HR management, attrition and separation.

Manufacturing

Engineering, bills of materials, work order, scheduling, workflow management, capacity, quality control, process of manufacturing, projects of manufacturing, flow of manufacturing, product life cycle management.

Supply chain management

Planning of supply chain, scheduling of supplier, order to cash, purchasing, inventory, product configuration, processing of claim.

Project management

Project planning, planning of resource, costing of the project, the structure of work break-down, billing, time, expenses, performance units, management activity. 

Customer relationship management

Sales, marketing, services, commissions, contacts of customers, call center support.

Data services

Various self-service interfaces for the customers, employees, etc.

Implementation

The scope of ERP generally implies a prominent change in the processes of how the staff functions. Usually there are three types of services which are available for implementing the changes-consulting, support, and the customization.

In the implementation, the time depends on the size of the business, modules, and the scope of the changes in process, customization and the readiness of a customer for taking ownership.

The modular ERP systems can be implemented at various stages. The project of a large scale enterprise lasts approximately fourteen months and needs approximately one hundred and fifty consultants. 

Smaller ERP projects may require a couple of months, although multinational companies as well as other government sectors may take several years to implement. The customization may substantially rise the implementation time.

Apart from that, the processing of the information actually has a very dominant effect on the number of functions any business carries; due to various competitors, taking control of the logistics effectively becomes quite significant for the manufacturers. Therefore, the large scale corporations, like Wal-Mart, make use of a ‘just in time’ system of inventory.

Moreover, companies have now realized that the importance of market share requires their sensitizations towards markets and for them to accordingly make adjustments.

A lot of real time applications help process information that fulfills such requirements. ERP undermines all such essential units of operational functions in a firm including financing, accounting, and procurement, sales and marketing.

Processing of information via ERP bridges the gap between various isolated units of functions and shares and updates real-time data to enable the managers to continually revise their strategies. 

However, these tools such as ERP are very expensive and also not practical enough for the processing of information specifically for the small scale companies. 

Conclusion

In conclusion, the perspectives of ERP, independently of the level of evolution and the relentless, seamless changes, battles with two predicaments which can be a blessing in disguise - convenience & simplicity.

The end- user expects super quality services and super-users do not really worry much about the used platform.

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