History and Evolution of ERP

ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II. From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes. From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture. The following table summarizes the evolution of ERP from 1960s to 1990s.

Timeline
1960s

System
Inventory Management & Control

Description

Inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.

Timeline
1970s

System

Material Requirement Planning (MRP)

Description
Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.

Timeline
1980s

System
Manufacturing Requirements Planning (MRP II)

Description

Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.

Timeline
1990s

System

Enterprise Resource Planning (ERP)

Description
Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources.

ERP History in Depth

The evolution of the systems dates back to the year 1960 as per ERP history. The systems in the yesteryears were designed to assist the manufacturing process.

The first software that was developed in this process happens to be MRP (material Resource Planning) in the year 1975.This was followed by another advanced version namely MRP2 which is the acronym for Manufacturing Resource planning. None of them yielded the benefit of ERP.

Drawback of MRP Systems

These soft wares were helpful in manufacturing process. Their benefits did not extend to other Sectors. ERP was developed as multifaceted software that gradually stretched its limits into other areas like human resource, finance, marketing and so on. Moreover ERP offered operational convenience and large reduction in costs coupled with other benefits when compared with earlier soft wares. MRP solutions attained more fame. Infact it became a hallmark of the manufacturing setups. The MRP solutions did not render the expected results due to exorbitant costs and practical work problems.Inaddition it also called for a huge pool of technical expertise in terms of manpower and machines.

Advent of ERP
ERP came into being with effect from 1990 though the fact remained that many people are of the opinion that ERP existed from the year 1960 in the form of MRP1 and MRP 2. IN Fact MRP II was more or less an ERP except for its inability to coordinate departments other than marketing. The whole period from the year 1960 is denoted as the age of ERP.The benefit of ERP was slowly felt from this stage onwards.

Companies
Sap ERP history contains detailed study of SAP's association with ERP.Global ERP leader SAP technologies were established in the year 1972 by five engineers. This was followed by invention of larson software which was a built in model. It was meant to replace the market practice of designing soft wares as per individual business needs. Some more companies namely Oracle and Baan Corporation were included in the fray in 1970 and 1980's.This was followed by the invention of People soft and their software on Human Resource Management in the years 1987 and 1988 respectively. Baan Corporation specialized in rendering financial and management consultation services. Oracle was the first ever company ever to offer commercial and relational database management systems.

Operating Systems
The operating systems that were in vogue during the period are important in understanding the history of ERP. JD Edwards Co Founder of moniker (in the year 1977) made use of IBM Systems/38.Baan Corporation utilized UNIX.

Market Information on Companies

Sap holds the privilege of being the world's largest enterprise company. JD Edwards and Oracle enjoy a whooping customer base of 4700(in 100 countries) and 41000 customers around the globe. People soft controls more than a half of the human resource market and has offices in many nations.

Web friendly
While ERP is a technological innovation in itself its efficiency is multiplied by several times with the help of latest inventions. Nowadays ERP is tuned to make use of the internet. This is to make sure that the buyers anywhere can have access to the database of the seller by a mouse click and that too by sitting anywhere in the world. This has become the mantra in the 21st century.

The latest ERP tool which is becoming the order of the day is ERPII which is discussed in detail as separate links in the website. SAP Erp History and ERP history are vital in understanding the origin of the subject matter.

ERP definition
What is ERP?
ERP is the short form of Enterprise Resource Planning. ERP utilizes ERP software applications to advance the performance of organizations' resource planning, management control and operational control. ERP software is multi-module appliance software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, product circulation, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business. Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. ERP is an amalgamation of a company's information systems designed to bind more closely a variety of company functions including human resources, inventories and financials while simultaneously linking the company to customers and vendors.

ERP vs. CRM and SCM

CRM (Customer Relationship Management) and SCM (Supply Chain Management) are two other categories of enterprise software that are widely implemented in corporations and non-profit organizations. While the chief aim of ERP is to get better and modernize inner commerce processes, CRM attempts to improve the association with consumers and SCM aims to make easy the partnership between the organization, its suppliers, the manufacturers, the distributors and the partners.

ERP Definition - A Systems Perspective

ERP, frequently like other IT and commerce concepts, are defined in many different ways. A sound definition should contain several purposes: * It gives answer to the question of "what is ... ?". * It provides a foundation for defining more detailed concepts in the field - ERP software, ERP systems, ERP realization etc. * It provides a common ground for comparison with related concepts - CRM, SCM etc. * It helps to answer the essential questions in the field - benefits of ERP, the causes of ERP failure etc. A definition of ERP based on Systems Theory can server those purposes. ERP is a system which has its aim, components, and borders. The Aim of an ERP System - The aim of ERP is to advance and modernize inner business processes, which characteristically requires reengineering of current business processes. The Components of an ERP System - The components of an ERP system are the common components of a Management Information System (MIS). *ERP Software - Module based ERP software is the core of an ERP system. Each software module automates business activities of a functional area within an organization. Common ERP software modules include product planning, parts purchasing, inventory control, product distribution, order tracking, finance, accounting and human resources aspects of an organization. *Business Processes - Business processes within an organization falls into three levels strategic planning, management control and operational control. ERP has been promoted as solutions for sustaining or streamlining business processes at all levels. Much of ERP success, however, has been limited to the integration of various functional departments.

*ERP Users - The users of ERP systems are workforce of the organization at all levels, from workers, supervisors, mid-level managers to executives. *Hardware and Operating Systems - Many huge ERP systems are UNIX based. Windows NT and Linux are other popular operating systems to run ERP software. Legacy ERP systems may use other operating systems. The Boundary of an ERP System - The boundary of an ERP system is usually smaller than the boundary of the organization that implements the ERP system. In contrast, the boundary of supply chain systems and ecommerce systems extends to the organization's suppliers, distributors, partners and consumers. In practice, however, many ERP implementations engage the integration of ERP with exterior information systems.

Exploring ERP fundamentals

It's enterprise resource planning (ERP) software that lies at the heart of a large enterprise's computing activity. The term doesn't shed much light on what the software actually does. ERP software integrates the information used by an organization's many different functions and departments into a unified computing system. That means that instead of using isolated departmental databases to manage information, such as employee records, customer data, purchase orders, and inventory, everyone in the enterprise relies on the same database. This allows employees in different departments to look at the same information. The unified nature of an ERP system can lead to significant benefits, including fewer errors, improved speed and efficiency, and more complete access to information. With better access to information, employees and managers alike can gain a better understanding of what's going on in the enterprise so they make better business decisions. For example, an ERP system could let buyers in the purchasing department quickly adjust material orders when they see an increase or decrease in customer orders. The result? They'll either ensure that orders are met on a timely basis or save on inventory expenses. Prior to ERP systems, companies stored important business records within many different departments. Each department often used different systems and techniques to manage that information. Information might also be duplicated many times within an organization without necessarily being identical or similarly up-to-date. Some of this information might only have been on paper, making it difficult to access it across the organization. For example, a customer might call sales to inquire about the progress of an important order. Instead of answering the question by quickly referring to a shared database, the sales rep would be forced to track down the order by making multiple calls to the company's manufacturing or shipping departments. ERP systems originated to serve the information needs of manufacturing companies. Over time, though, they have grown to serve other industries, including health care, financial services, the aerospace industry, and the consumer goods sector. With this growth, ERP systems, which first ran on mainframes before migrating to client/server systems, are now migrating to the Web and include numerous applications. IDC defines an ERP product as one that helps automate a company's business process by employing an integrated user interface, an integrated data set, and an integrated code set. IDC tracks about 100 vendors offering products that meet this definition. Dennis Byron, IDC's vice president of ERP and industry applications research, estimates that there are probably 1,000 companies globally that meet this definition. When most people refer to the "core" ERP applications or "modules," they mean the back-office capabilities to manage human resources, accounting and finance, manufacturing, and projectmanagement functions. However, major ERP suites from the likes of Oracle, PeopleSoft, and SAP now provide much more--including modules for sales force automation, business intelligence, customer relationship management, and supply chain management. In practice, ERP systems can be difficult to deploy and maintain. ERP packages are complex by nature and IT departments must invariably tailor the software to fit the company's specific requirements and business processes. Installing an ERP system is usually a massive undertaking measured not in months, but in years. Even after the initial deployment, an ERP system must be continually adapted to reflect changes in the business and software upgrades and extensions. We need to comprehend the troubles faced by conglomerate before getting to know ERP Fundamentals. Business houses always come across great complexity in rapidly making out the necessary information because of the huge data, improper segregation, departmental planning and unprecedented delays. Organizations were regularly searching for some means or mode to overcome this disaster. The problem was not only pinching on monetary profits but also antagonized clientele who were made to wait for a long time for a small piece of data. Enterprise Resource Planning or ERP as it is shortly referred has come to overcome this threat. It is a benefit to organizations that were in need of this kind of facility for ever. This idea will help to get a feel of ERP basics.

What ERP Does?

In short ERP helps to integrate the datas in an organization under one common platform. The purpose behind is not only to ensure transparency but also to facilitate tracking down information regarding the status of a particular order or its dispatch and so on. If a company succeed in this it will definitely achieve ERP benefit.

Benefits in a nut shell

An organization has to do meticulous planning, devise strategies before going ahead with ERP. ERP can cut down costs; improve the quality of working time and by and large. In short it helps in making the maximum use of technological advancements. For instance the executive in the Sales Department will be able to respond to a customer query immediately by making out the status of the product's delivery which would not have otherwise been possible but for the intervention of ERP in the organization. ERP has enabled organizations to do away with laborious and time consuming process. A strong understanding of ERP basics will help to know ERP benefits.

Planning an ERP Setup

ERP is often well said that done. No company can progress further without properly grasping the ERP Fundamentals.The Company have to properly understand ERP fundamentals in order to derive the maximum outcome. These are crucial factors deserving attention when it comes to ERP. The services of ERP cannot happen all on a sudden in an organization. It is a long drawn process .The spade work that needs to be done may require a couple of months and even years depending on issues like volume of the organization. Meticulous planning will definitely help to achieve ERP benefit. Companies have to be vigilant enough more so when it comes to the question of choosing the appropriate platforms and ERP softwares.This issue becomes crucial when it comes to the point of corporate amalgamation. The softwares used by the different companies have to be brought under one common platform. When a company goes in for ERP it must ensure that the information is updated as the facts and figures in the past will have no relevance to the current system. The progression must be constant to make sure that erp intervention account the most relevant facts. An understanding of ERP basic is necessary to ensure this. If you want to avoid out-of-control costs and incomplete results, it's essential to understand an ERP system's hidden costs and the major issues involved with implementing a project. Here are several key areas where problems can arise:

Planning and project management

It takes time and effort to properly prepare for an ERP deployment. The company's IT staff and the appropriate business managers must be given the time and clear responsibility to conceive and evaluate the project's scope, costs, and timeline. It's important to assign the planning responsibilities to staff members who not only have a good grasp of the technology, but who also understand the company's business requirements and processes. Also make sure that whoever leads the planning sees the project through--from the initial deployment to some extended period after deployment to work out the inevitable kinks.

Integration

Companies almost always underestimate the time and cost necessary for enterprise software integration. ERP systems rarely exist in a vacuum and they usually need to be tied into software and complex business processes that predate the ERP system. In addition to software from a primary ERP vendor, the enterprise may also want to use applications provided by other software vendors. For example, a company may want to tie its core ERP suite from SAP into a CRM application from Siebel and global trading management software from Vastera. Mergers and acquisitions also create difficult integration challenges because the merged companies may use different ERP packages and other different applications with which they've already integrated. Dick Kuiper, a vice president with Meta Group, says that a large enterprise typically operates five or more ERP systems and some companies are known to have more than 20 ERP systems.

Dirty data

A number of problems and hidden costs crop up when handling real-world data. When an enterprise converts its legacy systems to ERP, it must convert large amounts of data for use in the new system. Much of the old data is difficult--if not impossible--to convert, which means a lot of time and money will be spent re-entering it into the system or putting it through complex conversion processes. Even after a system is fully deployed, you can't take the data for granted because it ages. For instance, every month some of the company's customers, employees, and business partners change their address or other parts of their profile. Gartner Group analyst Beth Eisenfeld estimates that 2 percent of a company's customer data goes bad every month. She recommends an ongoing effort to clean up obsolete data. Finally, when data is combined from multiple systems for analysis or as a result of integration projects, more work can be involved to clean it up and convert it.

Testing
Given the mission-critical nature of a company's ERP system, it should be thoroughly tested before it's fully deployed. Don't just test the system with dummy data. Use actual data from different real-world scenarios. For example, a manufacturing company should pull up historic orders from customers and route the orders through the entire process of creating the product, shipping it, and billing for it. Ideally, employees who actually operate the specific business processes on a day-to-day basis should perform these tests. Of course, all of this costs money, but the investment will significantly reduce other costs that result from the downtime and poor implementations that occur when systems aren't properly tested.

Documentation

ERP systems take a long time to deploy and are used for many years within a company. That means they usually outlast the IT employees and business-process managers who conceptualize, deploy, and modify the systems. Documenting the system is crucial so that future employees can make sense of the software and business-process logic the system encompasses. Documentation is also needed to help future workers deal with the inevitable updates, extensions, and integration projects that occur as a company evolves. In addition, documentation can save consultants time and help them map out the scope of projects properly to improve cost accountability.

Training
One of the biggest mistakes enterprises make is forgetting that employees must adapt to a new ERP system. Employees must be trained on how to operate the system and how to apply it to familiar business tasks such as looking up and entering data, Furthermore, a new ERP system almost always means changes to business processes. That requires change management to teach employees about new business practices and manage staff reorganization. Employees often resent change and resist it when it means they have to let go of established work habits and take up new reporting relationships. Despite all the money a company spends, an ERP deployment can fall flat on its face or simply operate at vastly reduced efficiency if the company fails to adequately train the staff and manage the change effectively.

Consulting fees

Since few IT departments are staffed to handle the extra work required to implement each phase of a big ERP project, many of the items mentioned earlier require consultants. Without proper management, though, consulting fees can eat through your budget faster than a pack of mice through a chunk of cheese. It's important to make sure that in-house staff is capable of managing consultants. Consulting contracts should carefully define key deliverables, schedules, skill levels of available staff, and objectives for training internal staff. The contract should also be accompanied by a detailed specification that clearly points out the desired business objective and technical requirements. Proper planning and project management (as mentioned earlier) are important for managing consultants and holding them accountable.

The bottom line on ERP

Although ERP projects are complex and expensive, properly implemented, they are nonetheless worthwhile. Meta Group found that once fully deployed, the median annual savings from a new ERP system was .6 million per year. But every ERP system must be continually maintained and upgraded to take advantage of new applications, technologies, and features. ERP software is hardly static, and there are major new developments as the software grows to embrace the Internet and as companies open up their data and business processes to partners. (See story for more about the trends now shaping ERP.) When you realize how much is involved with ERP, you quickly realize that it is this software and the business process it describes--not the computing hardware--that lies at the real center corporate information technology.

What are the latest trends in ERP?

ERP calls for regular modifications and up gradations. ERP developers are facing great pressure both from vendors and companies. In this situation it becomes significant to examine the erp's trends and modalities.

Some of the relevant issues are as follows:

Need based applications Organizations had to realize ERP throughout their systems irrespective of the fact whether they help in all the functions or in one particular function. This was proving to be a huge obstacle to the firms. In addition this remained as the key shortcoming or delay of ERP. They had to obtain the whole applications even if it meant that most of them would be inactive except for the core function. The latest ERP software programs have overcome this threat. They offer need based applications. The firms need not be worried even if these Software Programs were not obtainable. They were given the independence to purchase and install Software Programs pertaining to that particular function. This advantage has helped to increase the scope of ERP not only among large firms but also small and medium business as well. Expenditures ERP was a very expensive affair. Thanks to the invasion of internet and open source applications. This has helped S.M.E.'S to enter the market of prospective buyers. This has not only widened the horizon of S.M.E.'s but also increased the usage among large firms. These large firms were not able to invest huge money in spite of sufficient funds. Now that the spending on ERP gets reduced there are no hesitations to show the green signal for fear of heavy monetary outlay. It is cheering to notice the improving IT ERP trends. Reduction in implementation time ERP was depressed by companies because they took such a long time to get installed and set the whole process into action. Since this resource was spent excessively there were chances for reduction in potential business and losing man-hours. The current day ERP applications are less complex to install and train. This has reduced the amount of time spent on ERP.Companies are thereby assured of spending lesser time for ERP. Open Source, Web enabled and wireless technologies These are three important elements that have rejuvenated the functioning of ERP.Open Source ERP has done away with the hassles of paying license fees not only during installation but also whenever a modification is made. The company is relieved from depending even for mince matters. Web enabled ERP helps in making the enterprise operations go online. Any stakeholder or third party can access the required information very easily and that too by sitting anywhere in the world. This proves to be of great help especially during emergencies when the details are to be sourced with immediate effect. Wireless ERP has helped organizations to make use of the communication channels effectively and efficiently. It has made it possible for many elements to operate in ERP which were otherwise not possible. Wireless ERP is nothing but sharing enterprise information through devices like internet and other devices making it possible for outsiders to access the same.

Conclusion

ERP trends reflect positive signals for the ERP vendors and companies availing their service. It is important to remember the fact that both the vendor and the company will be able to make use of any advantage (including the modern facilities) only through proper coordination, teamwork and nurturing a cordial atmosphere. Mere IT ERP trends will not help in this aspect.

Advantages and Disadvantages of ERP

The advantages and disadvantages of ERP is an attention-grabbing Study. The leading advantage of an ERP system is bringing down the expenses and reduction the precious time which would have otherwise been wasted in bureaucratic maneuvers and not needed delays. Different software programs maintained in the departments were proving to be a great difficulty. Since ERP is a consistent platform it ensures that there is no contradiction in the information that is processed.

Industry wise advantages

Manufacturing Sector--------------------Speeding up the whole process. Distribution and retail Stores-----------Accessing the status of the goods Transport Sector---------------------------Transmit commodities through online transactions. Project Service industry-----------------Fastens the compilation of reports. The advantage and disadvantage of ERP is best understood by studying them under different categories. Therefore the next paragraph presents information on corporate as a whole because the advantage of ERP systems in a company is different when compared industry wise.

Advantages in a corporate entity

The accounts department personnel can act separately. They don't have to be at the rear of the technical persons every time to trace the financial dealings. Ensures quicker processing of information and reduces the load of paperwork. Serving the customers efficiently by way of prompt response and follow up. Disposing queries at once and facilitating the expenditure from consumers with no difficulty and well in advance of the set time limit. It helps in having a say over your contestant and adapting to the whims and fancies of the market and business instability. The swift movement of goods to rural areas and in lesser known places has now become a reality with the use of ERP. The database not only becomes user friendly but also helps to do away with unwanted uncertainty. ERP is suitable for worldwide operations as it encompasses all the domestic jargons, currency conversions, diverse accounting standards, and multilingual facilities .In short it is the perfect commercial and scientific quintessence of the verse "Think Local. Act Global". ERP helps to control and data and facilitates the necessary contacts to acquire the same.

Disadvantage
In spite of rendering marvelous services ERP is not free from its own limitations. ERP calls for a voluminous and exorbitant investment of time and money. The amount of cash required would even be looming on the management given the fact that such an outlay is not a guarantee to the said benefits but subject to proper implementation, training and use. In the ever expanding era of information theft ERP is no exception. It is alarming to note the time taken to implement the system in the organization. These means large amounts of workers have to shun their regular labor and undertake training. This not only disturbs the regular functioning of the organization but also runs the organization in the huge risk of losing potential business in that particular period. There are great benefits rendered by the system. On the other hand when one thinks of this information reach in the hands of undeserving persons who could do more than misuse ,it is evident that there is no way of ensuring secrecy of information and larger chances of risk will be generated as long as they are in the public domain.

Conclusion
ERP is recommended in an organization not only because the advantages outnumber the disadvantages but also by keeping in mind the ways to overcome the disadvantages. An organization has to correctly weigh the advantages and disadvantages of ERP before going for them.

ERP Benefits
According to Anthony, R. A, organizational processes fall into three levels - strategic planning, management control and operational control. Even though much of ERP success has been in facilitating operational coordination across functional departments, successful implementation of ERP systems benefit strategic planning and manegment control one way or other. Help reduce operating costs ERP software attempts to amalgamate commerce processes across departments onto a single enterprise-wide information system. The major benefits of ERP are enhanced harmonization

across functional departments and increased efficiencies of doing business. The instant benefit from implementing ERP systems we can imagine is abridged operating costs, such as inferior inventory control price, inferior production costs, inferior marketing costs and inferior help desk support costs. Facilitate Day-to-Day Management The other benefits from implementing ERP systems is facilitation of day-to-day management. The implementations of ERP systems care for the organization of backbone data warehouses. ERP systems offer better convenience to data so that management can have up-to-the-minute access to information for decision making and managerial control. ERP software helps track actual costs of activities and perform activity based costing. Support Strategic Planning Strategic Planning is "a deliberate set of steps that assess needs and resources; define a target audience and a set of goals and objectives; plan and design coordinated strategies with evidence of success; logically connect these strategies to needs, assets, and desired outcomes; and measure and evaluate the process and outcomes." Part of ERP software systems is intended to support resource planning section of strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the difficulty of strategic planning and lack of sufficient integration with Decision Support Systems (DSS).

ERP Benefits Realisation: What It Takes To See Results

The Issue: Fewer than 20% of companies lately surveyed have the three critical elements required to make certain that their Enterprise Resource Planning (ERP) projects further the companys top business transformation goals. Information Technology (IT) groups carry on struggling to confirm the value of their massive investments in ERP, but they have already lost the fight because if you are still trying to demonstrate the value, its already lost reliability in the eyes of chief executives. With 57% of companies rating themselves fair to poor in measuring IT costs and benefits, its no surprise that their headship doesnt see the connection between IT costs and company aims. Past spending is a sunk cost; nows the time to plan for the future Are your proposed ERP projects critical to changing the competitive position of your company? Do they address a tactical aim of the company expressed by top management, or are they an unsystematic list of departmental needs? Do they just cut off a few costs here and there--or worse, do they only address IT issues? AMR Research surveyed and interviewed more than 100 companies to find out the best practices for receiving value from ERP. As detailed in the AMR Research Report ERP Benefits Realization Framework: Metrics and Organization Aligned With Business Processes, March 2004, we laid out an ERP Benefits Realization Framework synthesized from the research. The most flourishing companies shared three key attributes: A clear corporate vision emphasizing steadiness and collaboration among business units The value of a worldwide ERP realization comes from taking benefit of common consumers, suppliers, resources, and business processes around the world. Companies need to change their past practices and execute constantly across business units to see the profit. Executive management at the most flourishing companies we spoke to articulate a few simple, easily understood transformational aims for the corporation; aims that altered the companys competitive position. These ordinary aims infuse the case for each business and IT project, establishing priorities and resolving differences of opinion. The CxOs saw ERP as a change agent and emphasized a One Company approach to make certain collaboration among business units. One corollary: Decentralized companies and those that emphasized Profit & Loss (P&L) responsibility as their primary measurement of business units take longer to attain and are half as likely to surpass their Return on Investment (ROI) expectations. Companies using a Balanced Scorecard to evaluate business unit leaders fared much better. A dedicated group harmonizing and improving business processes Getting business units to agree on common business processes is difficult for most IT or ERP project teams. Continuous development requires continuing study in light of changing market surroundings and a stable stream of upgrading projects. We found 41% of companies with a

dedicated process improvement group were highly satisfied with their ERP projects, compared to 27% of those that did not. The best results, however, were kept for companies in which the process improvement group was led by a senior executive, reporting to the C-level. Sometimes called Chief Process Improvement Officers (CPIOs), their seniority and access to top management gives them the power to effect lasting change. The difference? 60% of this group is highly satisfied with their results. A central financial analyst presenting a credible and transparent accounting of the costs and the business value realized Executive management is doubtful of ERP and its profit because they are hard to find in the income statement and balance sheet. A few companies are solving this problem by appointing a dedicated financial analyst to bring rigor to benefits accounting. These analysts do the following: * Help establish the business case, metrics, and sources of benefits data for proposed projects * Measure the business benefit by project, business process, and organization, eliminating double counting by separate project teams * Report the results widely, giving executive visibility and creating some peer pressure for everyone to contribute How do you know its working? Companies told us that a few quarters of credible benefits accounting changed the question from Is ERP giving value? to What new projects can we start to get more? You now have the executive leadership and credibility to drive ERP benefits to the next level.

Recommendations
Unless you are in one of a lucky minority of companies that has all three in place, you need to understand what can be accomplished and what will be difficult to achieve. To improve your success, consider the following: * Link the companys stated goals to the business process changes required to achieve them and the role ERP can play in facilitating and enforcing the change. This is the foundation for getting all of the elements in place. * Lobby for permanent organizations to lead the ongoing change from the business and IT side, emphasizing ITs role in program management. * Establish the financial analyst position to track benefits long term. It can be in one of a number of organizations but must have consistency and credibility across projects and the years of improvement effort ahead. * If your management has no transformation vision and is focused on narrow cost cutting, consider redirecting your efforts to projects likely to be successful. Such companies in our study were far more likely to tackle safe projects, such as technical upgrades or small, quick payback departmental projects. They showed incremental value but never made a big difference in the bottom line.

Significance of ERP Implementation

Companies have to unmistakably know what enterprise resource is planning before thinking of implementing them. The catch word of ERP implementation is speed. The quicker it is realized the quicker and better are the advantages and delivery in terms of results. This in the early hours procedure has one more grasp. The returns are sought at a shorter period. This deviation from the conventional practice has become the order of the day as far as many companies are concerned. Previously Business process reengineering played an essential role with respect to implementation. It is significant to distinguish the components of Enterprise resource planning. Merely defining enterprise resource planning will not help in this. This obviously cemented way to progress of gaps between the definite results and the one derived during the process of foreseeing. Tuning ERP as per the whims and fancies of the practices followed in the company became an everyday affair. This led to slogging and dragging beyond the time limits permitted. It was financially pinching and played confusion in the customer's confidence. It is also essential to know that sheer ERP planning does not promise the

profit of ERP. It has to be implemented as planned after understanding the components of enterprise resource planning. In spite of having improved the implementation issues what remains still and unfettered is the way in which companies go ahead with ERP implementation. They do it for the heck of it and without following systematic procedures. In fact they don't even test the desirability of going into ERP. Some issues that an organization has to address after defining enterprise resource planning are *Popular information systems *Likelihood of fluctuations in the choice of technology *The ability of market players to stay in tune with it *The ways and means to implement a business applications like ERP *To benefit from the same so as to gain a competitive edge *Their usage and services *The necessity for innovating software applications If an organization is capable to answer these questions without any uncertainty and validate the results then it can be said that it has a path or up focus in taking ERP. The questions mentioned above are fundamental and will even fix on the business model of the company. ERP implementation is essential in the entire procedure of ERP. They can take place only if one understands "What is enterprise resource Planning" and defining enterprise resource planning in their organization.

Current Approach
It is essential to have an overview of the current approach. The current approach is claimed to be relatively successful. The current approach more popularly referred to as "baan" has two underlying principles. The idea which concentrates on molding the business This category is prominent when the organizational unit calls for a radical restructing process by all means. This process will be carried in all aspects of the business .Some of them include strategic manouvere, operation of trade and the circumstances that call for change and adaptability. Defining enterprise resource planning in context to the concerned organization will help to decide on this issue. The plan which lays more emphasis on technical parameters. Here business takes the back seat. The thrust lies on technical dimensions. This does not ignore the commercial viability as such but they occupy seat only in the due course of time more so when operations are triggered in full stream and not at the initial stage itself. The advantage with this type is that it does not call for an immediate modification of the business structure. However it is essential to know the components of enterprise resource planning.

What are the different methods in implementing ERP?

ERP implementation support includes all the services of the vendor. Companies spend a lot of time in discussing about the need to go for ERP. They make all sorts of assessments and bring the necessary resources to work on ERP. They even carry the exercises suggested in restructuring. When the stage is all set to take ERP the next million dollar question that comes to them is the appropriate method of implementation due to the risk for ERP implementation.

Some popular methods for implementation are as follows:

Joint ventures with the Respective Industry

The company need not necessarily implement ERP all on its own. They can as well share it with leading players in the same industry. This will ensure that the risks will not be heavy in the case of loss. This practice is assuming greater significance in the current scenario. The sharing allows them to have an interface with the systems on the basis of a common platform. This is catching up in the market with the only trouble being reluctance of competitive firms to come together on a mutual agreement for fear of losing business tactics. It is also seen as ERP implementation problem solution. Though the companies are at liberty to create security for their respective information there will not be any protection for the (pool of) records in the common database. However this has helped largely in many aspects. For e.g. the medical history of a patient brought in an emergency condition can be immediately accessed though ERP. This particular fact has itself saved many lives. On the contrary they would have to go through the rigorous process of finding the patient's identity and the steps aftermath which brings down the chances of the patient's survival are very minimal, in the absence of ERP. This is one of ERP implementation support. Perhaps there are many risks for ERP implementation. Doing it all alone This is in fact one of the primitive methods and is no doubt followed till date. This method takes a lot of risks in this method. But if they are calculated properly then the regime would be inscribed as a golden period in the company's history. The simple formula behind this phenomenon is that the company should go for it subject to its financial potential, requirements, technical acumen management policy and similar facts. All these will help them to arrive at ERP implementation problem solution. Full/Partial Implementation It has always been said that ERP products and services are purely based on the needs and resources of the company. This is not a risk for ERP implementation. Hence the companies can choose to go for a full fledged ERP system and implement it throught the organization and thereby interlink the whole process and the people concerned. Otherwise they may prefer to go for an ERP system that performs a particular function of the company. This is an important step in choosing the appropriate ERP software but at the same time it also adds more value to the implementation process. It is also an important ERP problem solution.

ERP Implementation Guideline

Research on enterprise resource planning have shown that the flaws in ERP implementation have resulted in the vast majority of companies failing to unleash the benefits of ERP softwares. This has led to lot of problems right from litigations to misinterpretations in business media. The vendor is always taken aback because the entire community blames him and the products. Enterprise resource planning phases are very important in this regard.

Probable reasons behind Failure

The actual problems lie in choosing the right software for your company. If this is either taken for granted or done hastily then the chances of ERP Success are rare. Some of the reason for failure could be exorbitant costs, inadequate training, longer time, and failure of strategy and the lack of attitudinal change on the part of employees to accept and manage change. They have to analyze "What companies use enterprise resource planning?"

Guidelines
* Very few companies succeed in the first instance after implementing ERP.ERP is not a fortune but a technology that delivers results only after effective execution of the laid down procedures. Therefore to merely bank on it will not suffice to obtain any results. What is more important is the implementation of the necessary changes in the organization so as to combat ERP. * ERP is not an answer to the errors in business plans and tactics. In fact ERP consultants are reluctant to attend to it because they don't want it to disturb the purpose of ERP. It should therefore be understood that ERP is an I.T. tool that assists and facilitates the business process by being a part of it. On the contrary it is misunderstood that ERP can rejuvenate the business. The answer to the popular question "What companies use enterprise resource planning?" will

help in clearing this trouble. * ERP gap analysis and business process reengineering should be performed properly. This will ensure that other steps are followed systematically and in accordance to the company's need. They are otherwise referred as enterprise resource planning phases. * IT facilities in the organization should be at par with market standards and international reputation. This will enable the operation people to constantly modify and update as and when it is necessary in order to stay in tune with the competition. Research on enterprise resource planning will reveal this. * The process of ERP implementation should be carried on by a team of competent personnel so as to ensure perfection, accountability and transparency. ERP should become a part of the daily routine. If that does not happen then the company cannot expect any fruitful results inspite of having followed the above mentioned steps meticulously inorder to ensure the successful implementation of ERP and no amount of successful planning of enterprise resource planning phases will help in this regard. There is another important issue that needs to be addressed in this regard. Even after successfully implementing and setting ERP right for action the trick lies in combining it with the business process. The restructuring should also address issues like finding solutions for the current business problems. It should not be done with an illusion that ERP will take care of everything. Unless these fundamental problems are solved the functioning of ERP will do very little to help connectivity and facilitation in business. A choice is to be made from ERP implementation models after knowing "What companies use enterprise resource planning?" An organization needs to answer the following questions while thinking of taking up ERP. * Perception of the business problems * The visualization of solving them. * How is ERP going to solve the same and how worth is it and how effective are the measures taken to implement it. * How and who will coordinate the operation of ERP and is it justified in terms of costs, time taken and efforts? * What is the accountability and transparency of ERP operations and how far it will affect issues like piracy, IPR and their impact on the organizations performance and image and the possible measures to curb any unnecessary elements?

Conclusion
If an organization follows all the abovementioned steps it will definitely result in successful ERP implementation as it has been witnessed in the research on enterprise resource planning phases.

ERP Implementation Life Cycle

The process of ERP implementation is referred as d as "ERP Implementation Life Cycle". The following are the steps involved in completing the lifecycle.

Shortlist on the basis of observation

Selecting an ERP package for the company can nevertheless be compared with the process of "Selecting the right Person for the Right Job". This exercise will involve choosing few applications suitable for the company from the whole many.

Assessing the chosen packages

A team of Experts with specialized knowledge in their respective field will be asked to make the study on the basis of various parameters. Each expert will not only test and certify if the package is apt for the range of application in their field but also confirm the level of coordination that the software will help to achieve in working with other departments. In simple terms they will verify if the synergy of the various departments due to the advent of ERP will lead to an increased output. A choice is to be made from ERP implementation models.

Preparing for the venture

This stage is aimed at defining the implementation of ERP in all measures. It will lay down the stipulations and criterias to be met. A team of officers will take care of this, who will report to the person of the highest hierarchy in the organization.

Gap Analysis
This stage helps the company to identify the gaps that has to be bridged, so that the companys practice becomes akin to ERP environment. This has been reported as an expensive procedure but it is inevitable. The conglomerate will decide to restructure the business or make any other alterations as suggested by GAP analysis inorder to make ERP user friendly. Click here for a detailed study on GAP analysis. A choice is to be made from ERP implementation models.

Business process reengineering

Changes in employee rolls, business process and technical details find place in this phase of restructuring most popularly refered as business process engineering. For more details on BPR click here.

Designing the System

This step requires lot of meticulous planning and deliberate action. This step helps to decide and conclude the areas where restructing have to be carried on. A choice is to be made from ERP implementation models.

In-house Guidance

This is regarded as a very important step in ERP implementation. The employees in the company are trained to face crisis and make minor corrections as well because the company can neither be at liberty nor afford the bounty to avail the services of an ERP vendor at all times. For more details on ERP training click here.

Checking
This stage observes and tests the authenticity of the use. The system is subjected to the wildest tests possible so that it ensures proper usage and justifies the costs incurred. This is seen as a test for ERP implementation.

The real test

At this stage the replacement takes place viz the new mechanism of operation and administration takes over the older one.

Preparing the employees to use ERP

The employees in the organization will be taught to make use of the system in the day to day and regular basis so as to make sure that it becomes a part of the system in the organization.

Post Implementation

The process of implementation will find meaning only when there is regular follow up and proper instruction flow thereafter and through the lifetime of ERP. This will include all efforts and steps taken to update and attain better benefits once the system is implemented. Hence an organization has to perform ERP implementation safely and correctly.

Errors in ERP implementation

ERP implementation failure is a major concern for companies. ERP implementation needs to be done without allowing any scope for limitations and mistakes. If it is not done perfectly then the success of ERP system will remain a question mark. The first and foremost factor that discourages ERP in an organization is the exorbitant costs and investment. The second one is the drafting of an ERP implementation plan to ensure ERP implementation success.

Some more issues that arise during and after the course of ERP implementation is discussed below:
Enhancement of ERP'S functions
Erg's scope gets wider as it is implemented in an organization. There is a call for including many tasks under the purview. This dilutes the ERP Existing system after modifying it a couple of times. Repeated change in configurations and systems will only add to the confusions. When the

functions are operated by a machine it becomes increasingly difficult to make the necessary changes. These troubles arise when they are not foreseen and addressed in the implementation stage. They have to be given a place in ERP implementation plan.

Organizational reaction to change

Changes do happen quickly and immediately in the organization after ERP is implemented. But if there is no proper understanding of the process or mishandling of information, it will result in questioning the ERP process. If updating is not done in the machine it will only affect the business process and create unnecessary confusions. The changes don't happen all on a sudden in an organization and expecting it immediately will only cause needless disappointments. In spite of all this expecting every member in the organization to respond proactively will not happen. If that happens the chances of ERP implementation success are great.

Inflating resources for ERP implementation

The implementation time and money always exceeds the promises and stipulated deadline and amount. This makes companies to lose faith on ERP and ERP vendors. They think that ERP vendors overplay on the costs and time required but it is not so. In fact they are aware of it in the very beginning stage itself but have a different reason for concealing. They don't disclose it in the beginning because it would look like exaggerating. In fact no one would like to lose a prospective business and vendors are equally aware of the fact that "Truths are always bitter"! However many people mistake this to be the cause for ERP implementation failure.

Organizations non adherence to the stated principles

Organizations largely experience a wide gap between practices and preaching .In fact this has a negative effect on the entire business scenario itself. The voracity and impact of loss could be greater and more devastating when this turns out to be true even in the case of ERP. Since ERP successful functioning is purely based on following the laid down procedures the lag could throw a serious challenge on ERP'S potential right from the stage of its implementation.

Problem of Transformation due to ERP

Employees find it hard to digest the transformations that place in an organization all on a sudden due to ERP implementation. In fact employees exhibit positive signs as everything goes right in the first place. But as one progresses he finds difficult to work as it gets more complex. The initial interest and expectation turns into apprehensiveness in due course of time. There is another category of people who did not encourage ERP right from the conceptualization stage. Their state of mind during these circumstances deserves no special mention.

Successful ERP Implementation the First Time

Management is getting its hoped-for results from ERP less often than not, and this begs an explanation for ERPs often-poor performance. What many manufacturers fail to realize is that extensive supply chain improvement requires that management begin to redefine its business in terms of strategic opportunities. The purpose of ERP technology is to support the business processes that support the companys strategic opportunities. There are some basic tenets of ERP that should guide managements actions and decisions. 1. There is no magic in ERP software. ERPs benefits are a direct result of effective preparation and implementation, and appropriate use. This seems obvious, but nine out of 10 companies dont get it right the first time around. Expecting a quick fix, silver-bullet solution is a dangerous mindset. 2. No amount of advanced information technology can offset the problem of a flawed business strategy and poorly performing business processes. This area, in particular, is something that ERP software implementers may not fully address because it can slow system deployment. 3. Define a business strategy that will give you a competitive advantage or, at the very least, make you competitively equal. Then, analyze your current business processes and develop your objectives. Once this step is done, the following steps for preparation, ERP software selection and implementation can support your strategic and process objectives better. 4. Acquire flexible ERP information technology that can accommodate rapidly changing business conditions. The high-velocity flow of information needed to support action up and down the supply chain is a major step forward for most manufacturers. It will be mandatory in the future just to compete, much less stay ahead of, the competition. 5. Have the implementation led by a senior executive who has the authority to make changes happen and happen quickly Make sure there is a sense of urgency and true accountability for completing preparation and implementation activities on time. Moving away from functional silos and creating effective cross-functional processes that are truly integrated via an ERP system is not an easy task. When ERP is not fully integrated into day-to-day business operations, however, it is not likely to be very beneficial. If enterprise integration or more advanced supply chain

management strategies are to have any chance of complete success it will be due, to a large extent, to the removal of traditional cross-functional barriers. These silos comprise the organizational boundaries where information flow, and often cooperation, stop. You must ask, How will we use the ERP system? Some not-so-obvious issues will surface as you try to answer that question. For example, will you combine demand-based flow and lean manufacturing techniques, which will negate the need for some traditional ERP functionality? Focus on your business strategy and not just software selection and implementation. Many problems are reinforced by contradictory objectives and performance measures that actually create inconsistent value and belief systems, to the companys detriment. No amount of information technology will correct these problems. Management must aggressively remove them once and for all through business process redesign.

Assess your skills and prepare

Management too often plunges into ERP less than fully informed, with limited knowledge of what to expect. Often, there is a misconception that the skills necessary to select and implement ERP already exist in the organization. That may be partly true, but few organizations have the skills they need to implement ERP effectively within a reasonable timeframe. Consultants may be able to fill some of the skills gap, but given the high risk involved, its important to make sure theyre genuinely qualified. Another commonly overlooked area is the issue of information technology change. Often, the IT infrastructure changes required to implement a new ERP system are not given the high priority these technology issues deserve. Certainly, implementing ERP should be driven by business issues, not technology. But it is ITs understanding and skills that support the technology that improves business processes. Ignoring the prepartion and education new information technology requires is asking for trouble. Further, IT personnel often must make the technology transition quickly. If the technology and infrastructure transition are not done well, the project, at the very least, will be delayed. One of the biggest problems with implementing ERP is misunderstanding what ERP is all about and underestimating what it takes to implement it effectively. Senior operating management cannot relegate critical decisions to personnel who may not have the background or the temperament for this type of decision-making. Companies need a well thought-out, comprehensive process to help plan, guide and control the entire ERP implementation effort. Starting an implementation with an undocumented, skimpy or untailored implementation methodology is an open invitation to disaster or, best case, a long, drawn-out implementation. Everyone from the boardroom to the stockroom needs to understand his role and responsibilities for implementation. Implementation leaders should encourage dialogue to get people focused on business objectives and early identification and correction of any problems. Who will be accountable for results, and when, must be an integral part of this understanding. An implementation thats going astray becomes recognizable when repeated schedule slippages surface. As time moves on, the missed schedule problems start affecting implementation quality as the almost-inevitable response is to start taking shortcuts and bypassing critical business issues. The slam-and-cram method of an ERP software transplant is now in high gear.

Software selection is not easy

Before the nitty-gritty of software selection begins, it is a good idea for management to know how current strategy, processes and supporting systems compare to what they could be with the new system. In fact, this discovery process should be performed every couple of years so management will know where the company is, compared to a previous stake in the ground. This is a basis from which to evaluate opportunities. Many people avoid examining strategy and business processes and jump right into looking at software functions and features. Software vendors often encourage this because they want to move you along quickly in the sales cycle and get you closer to licensing their product. Be particularly wary of so-called proof-ofconcept offers wherein the vendor implements its software at your site and offers various guarantees. This practice adds confusion to the software selection process, especially for the uninitiated. Obviously, ERP software vendors are in the business of selling their products (just as your company is) and they have their very best people work the sales cycle to guide your organization to their obvious best solution for all of your problems. Start defining software needs by examining current processes that govern your flow of information and material throughout the order-to-delivery process and ultimately the entire supply chain. There is a common tendency to shortcut this very important activity, but you will paysometimes dearlyin time and money for avoiding this essential step. Evaluating and selecting ERP software is a complex task. It should be a fact-based process that brings you to a point where you can make a comfortable, well-informed decision. The process requires an objective and comprehensive methodology to guide you through the selection process. This does not mean you should use voluminous predetermined questionnaires that do not recognize your specific needs. Rather, it means your evaluation and selection process should be based on your own strategy and business process model. A comprehensive methodology to plan, guide and control the effort has the potential for dramatic savings, not to mention the most important benefit: avoiding big mistakes. At some companies, management is so preoccupied with other, seemingly more important activities that ERP is delegated completely to the IT department. The idea that this is strictly a technology project because software is involved is wrong and, in fact, is one of the

leading causes of ERP failure. The IT function is not well-positioned to evaluate the business implications of various tradeoffs or to determine their impact on day-to-day operating results versus strategic intent. Certainly, this shouldnt be the case as operating decisions belong with senior operating management and not IT. Once an ERP system has been selected, its rare for a company to cut its losses and scrap the project until many years have passed. The political fallout is often the biggest obstacle. No one wants to tell upper management that an ERP investment of millions of dollars was a mistake and the process should be restarted. When a company lives for many years with a poor ERP decision and/or implementation, however, the costs continue to escalate and the benefits do not come. The cost of lost opportunities could be massive. The ERP software search, evaluation and selection process must be done right to minimize this risk. The clean-sheet-of-paper approach, although alluring in concept, has been a big bust for many companies. The clean-sheet business process redesign and the subsequent ERP system configuration is complex, costly and timeconsuming. Consequently, most companies have come to accept the compromises and trade-offs that industryspecific, best-practice templates require. Preconfigured templates allow faster system deployment and faster benefits. Processes can be refined at a later date. This is not to say that it is okay to just slam and cram predetermined processes into place. On the contrary, selected template processes must still be verified for appropriateness, at least for the near-term, before going forward. The demand for rapid ERP implementation is high. This was the primary driver for the development of off-theshelf templates designed to speed up and simplify the software personalization process. But templates, by their very nature, incorporate specific best practices that support cross-functional business processes. On the surface this may sound like nirvana, but very few organizations take the time to rethink how they should and could run their businesses. By taking the easy way out, these companies end up with generic, albeit industry-specific, functionality.

Plan to succeed
Successfully implementing ERP the first time requires a structured methodology that is strategy-, peopleand process-focused. This is the only way to manage the risk effectively. A good methodology covers all the bases, but when the unexpected pops up, as it usually does, you will be prepared to handle these exceptions without severe negative consequences. One very common mistake is not having your employees prepared to use the The consequence here can range all the way to total failure, but they are avoidable. Evaluate your business strategy and ERP plan before you commit to software acquisition and installation. Doing it right the first time is the only cost-effective way to go. Many people out there wish they had paused to evaluate their direction. The following questions do not cover every possible contingency, but should be helpful to stimulate thought and discussion. How do we want to run our business? What business problems need to be solved? Do we know and understand our priorities? Do we fully understand our as-is condition versus our could-be/should be processes? Have we carefully defined an action plan for pre-implementation preparation activities? What tasks will be accomplished and when? What are the missing links in our current system and our software of choice? What are the real costs, benefits and timetable going to be? Do we have an executive-level ERP champion to provide the necessary link to top management? Who will implement ERP and make it work? ERP and supply chain management systems implementations are,in fact, projects without an end. After all, the supply chain is, to a large extent, the very life blood of a manufacturing company. For the well-prepared, new supply chain management systems based on ERP have become significant competitive differentiators. Implementing ERP can become a mind-altering experience for those involved. Following a sound methodology will greatly increase your likelihood of success the first time. Yet, it will not guarantee your success. Only you can do that.

Conclusion

ERP vendor has to address all these issues in order to ensure that there is ERP implementation success. If everything goes as per ERP implementation plan then there are no chances of ERP implementation failure.

Do You Need an ERP?

ERP is more than just a piece of computer software; it is the way in which business processes across the world are being transformed and optimized. Growing business organizations are experiencing the need for a structured approach to enterprise management. Business processes need to be planned

and responsibilities streamlined to map out a business model based on practices which facilitate an efficient use of resources. As part of the growing need to plan enterprise resources, it becomes increasingly important to centralize management, control and reporting. Global workforces and offshore enterprise units need consistent information sharing in real time to ensure standards based work flow. The information must be organized within a well defined communication loop such the managerial processes flow smoothly at different levels of the organizational structure. An ERP system gives management a vantage point into the working of the company. The system maintains a single database in which information from a variety of business functions, such as finance, manufacturing, human resources, sales and customer management are gathered and reflected within a unified information resource which can be accessed for optimal user reference in real time. The utility of an ERP system far exceeds the basics of streamlining communication between a company and its employees; it brings together ideas and utilities from different enterprise systems onto a cohesive and sustainable platform. This information bank then becomes a shared resource for entrepreneurs to collaborate on a host of business functions, alongside cross referencing for users and clients to find the most cost effective and efficient business strategies through a shared initiative. Have you been experiencing a strain on existing systems? Looking to scale up with a new process despite managerial constraints? A swift organizational growth may be the cause of this strain, but sustaining this growth or starting a new enterprise process right from a scratch will need you to engage the services of an ERP system. Here are a few pointers which should help the top management decide on the need for an ERP package:

Whether there is a need for quick flow of information between business partners.

Whether the existing management information system facilitates quick decision making or if it needs to be made more effective.

Whether there is manual documentation work that can be eliminated. And whether there is a need for integration between different business functions within the organization and across multiple geographic locations.

A company does not necessarily need ERP software to carry out any of these processes, but it cant have one which is more efficient than having a single business process model for the entire organization. With an ERP system on

hand, each department is better equipped to carry out key tasks, while a visibility across all processes ensures that critical business decisions can be made on the right horizons. In summary, this is what an ERP systems offers in terms of enterprise capability:

1. Communication
ERP offers effective communication in all directions by bridging software tools specific to each department in a business enterprise. Managers can not only raise the bar for information sharing, but also implement better team building techniques through collaboration based on shared user interests and skills. The need for an ERP is further heightened where there is a need to eliminate manual documentation especially across different business functions in physically disparate work locations. ERP is a comprehensive solution to multi layered dynamics of any business enterprise and its employees.

2. Control
ERP can help set up, monitor and correct business processes in the most efficient manner. Setting up an ERP system should help you appreciate the need to plan for future collaboration while at the same time giving you the level of control you need for your business not only in the present, but in the future as well.

3. Enterprise Upgrade
In an age when innovation is fast replacing traditional methods of corporate management, what every organization needs to look for are ways to improve processes and make them more efficient. With the right ERP package one can successfully adapt to push business growth through change. Build, share and collaborate to make the most successful enterprise upgrade. Small and mid-sized companies need to be better equipped within rising trends to maximize growth options. To stay ahead in your business you will need information at your finger tips. You will need ERP to manage your resources judiciously and implement an integrated solution in your organization. Remember, what got you here, wont get you there! Get what will get the ERP software!