ERP- What it is and how it works
Business is now based on the performance of computers as much as the performance of staff and managers. ERP software (Enterprise Resource Planning software) is a generic term to describe high quality custom IT solutions for businesses. ERP provides businesses with a sequenced, orderly “whole process” IT operation for any kind of business.
ERP basics
ERP is an integrated approach to a group of problems that many businesses will recognize-
- Disjointed and inefficient connections between business operations using multiple types of software.
- Lack of capacity to manage expanding business operations.
- Large volumes of repetitive work and administrative tasks.
These situations have been becoming progressively more important to modern businesses. They reflect built-in, avoidable problems, and they’re expensive.
ERP is the state of the art approach to a range of core business operations, including:
- Inventory
- Stock management
- Administration
- Workflow management
- Reporting
- Project management
- Profitability
- Manufacturing
- Sales functions
- Accounts
- Productivity measures
- Multiple operational functions
- Staff resource tracking
- Warehouse management
- Service industry data
ERP- What it is and how it works
ERP is the new perspective in business software. It represents a whole new horizon for modern management, and a massive paradigm jump from old practices. ERP allows options for major cost savings, and multiple options in terms of methodologies.
Perhaps most significant for businesses is the flexibility which ERP provides. This is a scalable system. It can be adapted to any type of business. The reporting functions are particularly valuable, automatically providing many management options and efficiencies.
In project management terms, ERP is an extremely effective, holistic methodology. ERP can manage an entire project in a “single stream” context, rather than the expensive and often highly costly multiple reporting streams which can drive project managers to distraction.
For example:
A project involving a call center, ordering and sales functions of a product using ERP can manage:
- Transaction reporting
- Accounts data
- Sales functions like marketing, quotes and projections
- Call data
- Real time reporting
- Point of sale data
As you can see, this is all critical data, and as real time information, it’s far more efficient in terms of maintaining a clear view of project operations.
If you’ve ever done project management, this is nothing less than a revolution. In the past, project data literally had to be assembled, and were inevitably well behind real time values. ERP is proving itself to be a major asset, providing effective reporting functions literally at the coal face.
ERP as a benchmark standard for business
ERP is effectively a cultural change as well as an IT concept. It’s more than probable that ERP operational concepts will replace old methodologies. In keeping with best practice IT management and system design, ERP provides a fully functional, integrated live system.
That happens to be the benchmark for best practice in modern IT system design. ERP has effectively become a working model of a major IT design principle, in practice. If you’re looking for IT business solutions, ERP is likely to be what you’ll need for the best results.
