The emergence of the Internet, evolving customer needs, the pressure to accelerate the business process and the need to create more collaborative relationships with key suppliers and trading partners are pushing for all organizations ERP solution. So what is ERP? Enterprise Resource Planning (ERP) is described as a " information system package that integrates information and information based processes within and across functional areas of an organization " [1]. Traditional stand-alone applications are designed for specific customers, with limited functionality, and isolated from other applications. Rather, ERP is a business tool that integrates all applications required by an organization as a whole, and connects the organization of other companies in the form of a network. It is usually compromised by several modules, for example: a financial module, a module of production or distribution of a module. Today, ERP Tuesday added new functions such as supply chain management, data management products, electronic commerce and warehouse management. Thus, ERP opens a window of opportunity for companies to compete globally, respond to competitive pressures, and increase revenue.
ERP & Operations basic characteristics:
ERP facilitates company-wide integrated information system covers all functional areas such as manufacturing, distribution and venda of creditors, Receb veis, inventory, accounting, human resources, etc. Purchasing - core business ERP carry on customer service and increasing satisfaction. -- ERP facilitates the flow of information between different sections or departments of the organization. -- ERP bridges the gap between trading partners that allows collaboration underway. -- ERP is a good solution for better management of projects. -- ERP is built and open system architecture, that is, it enables automatic introduction of the newest technologies, such as: Electronic Funds Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet, video conferencing, E-Commerce etc. - ERP not only addresses the demands of society, but also provides the opportunity to improve and continuously improve business processes. -- ERP provides business intelligence tools such as Decision Support System (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (robots) to help people make better decisions and thereby improve their business processes. -- ERP tracks from a wide range of events in an organization, and plans for future activities based on these events.
ERP driving forces:
1. The need to increase the supply chain efficiency.
2. The need to increase access for customers to products or services.
3. The need to reduce operating costs.
4. The need to respond more quickly and flexibly to developments in the marketplace place.
Global ERP Implementation:
Historically, most international companies have managed their systems with regional basis, because there was no one single solution that was generally acceptable. In the dynamic business environment these days there is a strong need for organizations to become competitive globally. The key to success lies in customer satisfaction, by understanding customer needs and offering quality goods and services in the shortest time possible. To support a global perspective, many companies have implemented or are in the process of implementing Enterprise Resource Planning (ERP) Systems to improve the level of coordination between national authorities of the same company, and also with business partners. However, to achieve this level of coordination is important to have a global market strategy, a computing infrastructure ventures, and business processes in place.
An analysis of recent global ERP projects, highlight the importance of aligning the organization with structure business process and business strategy with IT strategy in order to compete in the international market. " Threads " is a good example of an international company which replaced its legacy with the ERP system. " Threads " had a national organization that operates in the country by country basis.
To structure obtain an overview " Threads " decided that its time to change the transformation of society from a place for a geographical perspective world. Thus, making Europe a market for their commercial operations, and also ensure competitiveness through a focus on quality, price and customer service. The organizational structure and support for global ERP is shown in [2].
Enabling Technologies: Traditional ERP systems required sophisticated and expensive, such as IT infrastructure, mainframe computers. Today, with the advancement of information technology and lower costs of computers, it is possible for SMEs & 39; sa think of ERP systems. Moreover, the power of the Three Tier Client Server and scalable architecture based relational database management become easier to deploy ERP systems in various places. Implementation of ERP:
Implementing an ERP project is a process was in many phases. Following a step-by-step approach will simplify the process and is more likely to produce a better result. The usual steps involved in implementing an ERP are: the Project Operational Planning the Business and analysis, including the Gap Analysis Business Process Reengineering the Project Installation and setup time of the formation of the Business Requirement mapping module setup, the system interfaces Custom data conversion of the Documentation the end-user training the acceptance test the implementation Post / Audit support
In short, ERP implementation can transform the way an organization conducts business. It helps the company to link its resources, use and allocate them the best and control them in real time. For example, in the case of & 39; Threads " the transformation of the system of Legacy ERP system resulted in a reduction of data redundancy, reducing overhead costs, increased customer responsiveness and levels of customer service throughout the company. This has been facilitated by the implementation of a common global ERP system throughout its European operation.
Critical factors of success of ERP:
The successful implementation of an ERP draft management plan requires careful, and have all necessary human and financial resources on the spot. Below is a list of the main factors critical to the success of ERP:
1-Top Management Support: Among the most important factors for the success of the project ERP is the top management commitment and support. The role of top management, includes developing an understanding of the capabilities and limitations of the proposed system, setting goals, and communicate the corporate IT strategy for all employees [3].
2-Project Management: Another important factor in the success of ERP is managing the project life-cycle to initiate the closing phase. The Project Manager (PM) has sole responsibility and authority to plan and manage the project scope to meet the benefits specified time frame and in budget.
3-Selection of the appropriate package: Selecting the right package is an important managerial decision. Analysis and evaluation of needs and processes of organization help in making the right choice that best fits the business environment. A careful selection of the right package results in minimal change and successful implementation and use. About hand, selecting the wrong software can mean a commitment to architecture and application that does not fit with the strategic objective organizational or business process [3].
4-User training and education: The quality of enforcement may derailed by poorly trained employees who do not know how to properly operate the system for ERP. The transfer of knowledge to the employees is without doubt more important than the quality of the system. Therefore, companies should use consultants to run training sessions on how the system works, and how they relate to the business process.
5-Business Process Re-engineering: Business Process Reengineering is a prerequisite for implementation moves forward with ERP system. A study in depth BPR has to be done before taking up ERP. Business Process Reengineering brings the shortcomings of the current system and attempts to maximize productivity through restructuring and re-organize human resources and the departments and divisions organisation
6-Dedicated Resources: A key critical factors of success is the determination of ERP human and financial resources needed to implement the system. This should be done at an early stage of the project. Failing to commit the necessary resources and often result in programming cost overdue.
7 Project Team-Jurisdiction: Another key element of ERP success or failure is related to the knowledge, skills, capabilities and experience of project manager and members of staff. The project team should work in a coordinated way to achieve a goal. Hence, it is vital to team members technical and business skills to take to supplement their work.
8-goals and objectives clear: Set clear objectives and identify the goals of the Project ERP is the third most critical success factor. The initial phase of any project must begin with a conceptualization of the goals and possible ways to achieve these objectives. It is important to define the objectives of the project even before seeking support from upper management [3].
9-Ongoing Support Vendor: ongoing vendor support represents an important factor in any package of software. ERP systems require ongoing vendor support to keep them up to date with the latest version and modules. Beyond this, vendor support provides technical assistance and maintenance.
10 inter-communication: Good communication is a key component to the success of ERP. Hence, is essential for effective communication among team members and the rest of the organization in order to keep everything working properly.
To conclusion, ERP implementation could become a complex and risky, if not managed properly. Organizations need to identify the critical issues affecting the implementation process. Such as: select the software package appropriate, ensuring commitment and support of top management, cooperation from business partners, having adequate knowledge among the team members, train staff and keep them informed. All these questions and more can minimize the failure of the ERP project and maximize the success of ERP implementation.
References:
[1] Kumar, K. and Van Hillegersberg, J. Trials and developments PRTs, Communications of ACM, (43: 4), pp. 23 to 26, 2000.
[2] C. Holland and Light B. (1999) Global Enterprise Resource Planning Implementation Retrieved August, 27, from 2005: http://csdl2.computer.org/comp/proceedings/hicss/1999 / 0001/07/00017016.PDF
[3] TM Somers, and Nelson K. (2001), the impact of Critical Success Factors throughout the stages of Enterprise Resource Planning implementations, published in Hawaii the 34th International Conference on System Sciences, 2001, Hawaii
[4] Holland CP, and Luz B. (1999), The Critical success factor model of ERP implementation, IEEE Software, May / June 1999, pp. 30-36
[5] M. Hammer and Champy J. (1994) Reengineering the Corporation, New York, Harper Business.
[6] M. Kerchevak (2005) Five Steps to an ERP solution, Retrieved September 3, 2005 from: http://archives.tcm.ie/businesspost/2005/06/05/story5254.asp
[7] S. Robinson (2004) An Overview of the developer of ERP, Retrieved September 1, 2005 from: http://www.developer .com/design/article.php/3446551
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