ERP Solution

Enterprise resource planning (ERP) can be explained as a cross-business integration of numerous departments inside of the organization. Departments that benefit from an ERP solution are usually accounting, finance, inventory management and customer service. Enterprise resource planning software also integrates internal and external information across the business.

Things to consider before selecting an ERP Solution

An ERP solution should have careful planning before anything has taken place. Careful analysis of the enterprise's business processes and which processes to improve should be always be communicated to the organization's stakeholders. A business process re-engineering is a radical change of how the process functions. A re-design is a slight modification of how the process functions.

A re-design or re-engineer is not better than one another as they both can go horribly wrong if they are not properly analysed and implemented. Other factors that should be taken into account are the businesses cultural organization as it could have an effect on the ERP solution provided by the consultants or analysts. As with any ERP solution a proper project management team should always be in place working with the analysts and consultants in order to deliver the project on time and on budget and most importantly meeting the needs of the business. Previous systems must be also taken into account when implementing ERP solutions.

Benefits of an ERP Solution

An ERP solution allows for easy reporting capabilities to present to management and allowing for status updates for weekly meetings. Other benefits include on-demand sharing and reporting of data across the organization. The ERP solution also allows the finance or accounting department to easily know what value a certain order will be if it is in another currency.

From an operations standpoint, an ERP solution allows for project managers to manage expectations of new projects by showing progress reports that are available to all management and stakeholders. Certain types of ERP software allow for integration of project management software, such as Microsoft Project, which will allow for ease of data flow and data integrity within the system.

The supply chain is very important for any business that wishes to improve delivery and management of its inventory. With an ERP solution, management can view real-time inventory levels and forecast demand and shortages before they occur. This allows for an improvement in efficiency and an increase in profits. An improved supply chain will give customers the information they need to decide whether to order with the business or not.

To In-house or outsource development of an ERP Solution?

Benefits of in-house development:

Control of Business: In-house development allows for greater control over business processes. Relying on external consultants and vendors can be detrimental to business.

Keep business culture: ERP implementations are a companywide change usually. Hiring external consultants and vendors can have its effect on a business. It is important to have a strong team that has the necessary skill in the development team when deciding to go in-house.

Benefits of outsourcing an ERP:

Fresh insight: A business analyst or consultant can provide new and innovate ways of doing business to the organization.

Specialization: Some vendors specialize in only ERP implementations. As time goes on the vendor becomes more and more comfortable and aware of what their software can and cannot do. Since the business has experience in dealing with implementations it can be more predictable during the implementation phase and will allow the business to know what to expect.