How to Pick Right ERP System

By: Tom desousa

An ERP (Enterprise Resource Planning) system is considered as the only system developed to cover all the basic functions of an organizational work, regardless of the organization's business or charter for integrating all aspects of data and processes related to it. It started as a group of applications or software which focuses on combination of multiple systems into one integrated system through which data can be shared across the company; it thereby reduces redundancy of data entry and processes. It provides almost all the functions of an organization in a single package that is covered by more than one system.

The term ERP signifies the system which is designed to increase the utility for wide resources of enterprise. An ERP eliminates the external interface and replace independent application of an organization as well as provide additional benefits like standardization and lower maintenance which enhances the reporting capabilities in easier or greater manner. ERP is seen as an opportunity to integrate data of systems and refine processes in the interest of gaining efficiencies and to increase employee's growth professionally by the enforcement of fresh knowledge and skills for procedures.

Selection of ERP software is not done all of a sudden. It requires lot of hard and base work to introduce the ERP into a system. There are several reasons for uncertainty, foremost being Internet. Because of ERP the scope of computers has been expanded and business has been changed technically. As a result it has increased the demand and expectations which were not seen earlier.

As we all know that business is not a steady process it requires growth and development in this reference ERP package will need more changes. The packaged ERP has proved itself as an excellent in their ability to amend and grow with the business, a flexibility advantage that is often recommended by vendors.

There is no doubt that a packaged ERP solution is better at adapting to changing business requirements, but it is necessary to determine that its flexibility is worthwhile for the cost because it is not necessary that the organization will make fundamental changes in the future. For example, basic business processes such as accounting finance and general ledger will rarely undergo radical changes. But there are several other areas in ERP can be proved as an ultimate solution. ERP is been utilized in many of the areas where the use of computer were not previously. Few areas can be stated as Integrated Financials (General Ledger, cash management, multi-currency, multi-language, fixed assets), Business Intelligence (executive information systems, multi-dimensional modeling), Manufacturing / Importing & Scheduling, Distribution (Inventory management, bonded warehousing, logistics, transportation planning), Customer Service (Sales order processing), Communications (Internet / Intranet).

Enterprise Information Systems
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