Enterprise Resource Planning (ERP) is the integration of two or more databases or processes of a company or organization for more efficient operations. This integration is essential so that different business functions can be managed easily. Most companies and organizations that have implemented an ERP strategy system generated considerable savings in terms of software infrastructure deployment. The ERP system also promoted productivity due to the increased coordination and unification of separate business units and organizations.
There are two major steps that could be taken by companies before implementing a sound ERP strategy. First, they must determine if their organization really needs an ERP solution. A careful assessment of the organizations business applications should be made. This will determine if the current software the runs different business functions is enough for the companys operation. An ERP solution is ideal if the business processes and planning management of the companys different units are experiencing work backlogs and variances. The ERP strategy could resolve these pressing corporate issues.
If companies have determined that there is a need for ERP deployment, the next step would be to evaluate the applications requirements of the organization. This involves synchronizing the nature of business with the business applications software. Thats because manufacturing companies have different ERP requirements than those involved with distribution, services, or government functions.
ERP will certainly help any organization or company in systematizing their business functions and processes. All it needs is careful planning, assessment, and evaluation of corporate needs before charting a sound ERP strategy solution.