Because the ERP system offers a single repository for company-wide data that is accessible to everyone, the risks associated with working with disparate systems and data -- like the potential for error or duplicating business functions in different departments -- can be reduced.
Large enterprises in particular have many different systems that have been independently installed by departments -- and they want to implement a single ERP system that takes the place of these earlier systems and that can also get rid of the operational inefficiencies and time delays that have developed through the years.
Mid-sized companies want these advantages, too -- but they also want a way to level the playing field with their larger enterprise competitors. These companies may want to select an ERP system that can be scaled out to cover more organization business processes as a company grows.
With cloud-based ERP offerings, even small companies can afford an ERP system that instantly brings more efficient business processes into their organizations, which often lack the internal resources or expertise to institute the software.
Finally, many large-, medium- and small-sized companies look for ERP that is specialized to the needs and requirements of their particular industries. There are several ERP vendors that provide this industry vertical specialization.
An ERP system must fit well with the company's existing operations and systems -- and it must also be able to deliver on key performance and profitability goals that the company's existing systems can't deliver on. This is a tall order -- and it is also the reason why ERP has a higher failure rate than any other software. It can be a career-ending project for many managers if an ERP installation doesn't go well.
For an ERP decision maker, whether it is an internal ERP champion/user, a CFO, a COO, a VP of manufacturing or someone else, this means that it is important to find an ERP partner that is as capable of working with you on system installation, integration, consultation, training and support as it is in delivering a new ERP system.
Despite the wide variability in company needs for ERP, there is a core set of ERP components that most companies want:
Finance
Companies want to record, track and consolidate all of their sales and operational information in a central accounting system. ERP financial software delivers this capability with centralized general ledger, accounts receivable, accounts payable and payroll systems.
HR
ERP offers a centralized HR system that enables organizations to track personnel hours and employee performance evaluations across the organization, as well as administer benefits and manage talent and staff development.
Purchasing/procurement
ERP purchasing software streamlines the procurement process from purchase-order issuance and vendor management to payments and reporting. ERP purchasing software also has the ability to automatically route approvals of purchase orders and payments to the appropriate corporate decision makers.
Business intelligence
Organizations increasingly want data analytics that enable them to assess and act on information about the business. To facilitate this, ERP vendors provide pre-designed reports that companies use to assess business sales and operations, along with the ability to perform data mining and to develop custom reporting.
Customer relationship management
The ERP CRM application is a centralized repository of customer information that customer-facing organizations across the company can use and access. It includes information about company interactions with prospects, customers, clients and partners, and can track all of these interactions across marketing, sales, service and any other customer-facing department. ERP CRM includes sales force reporting, tracking and automation, marketing, service and support
No comments:
Post a Comment