ERP software focuses on the key business processes of manufacturing, supply chain management, customer relationship management, financial management and project management, human resource management, inventory management etc. A well implemented ERP system will improve the efficiency of the organization, reduce cycle time, better control in work in progress, and run a JIT (Just in Time) inventory system.
It integrate with various other tools an organization uses, from Customer Relationship Management software to the Human Resource Management software, logistics systems and accounting software.
The greatest barrier to any successful implementation is resistance to change. The managers who will use the system and their employees both have a fear regarding new system. Overcoming barrier to change takes place called change management. Key to the successful implementation of any system is the knowledge management. Once initiatives and strategies are in place for ERP implementation, intensive business process re-engineering (BPR) typically takes place. Once BPR have been done and then incorporated into the ERP system to implement the system easily.
The most important benefit of implementing ERP is system integration that allows organizations to perform more efficiently. It reduces the process cycle time; reduces the number of errors in supply chain, manufacturing, and other business processes. It can integrate the supplier, employees and customer in real-time integration. The system can be so far reaching; it acts as a magnifying glass. Any business problems are quickly seen throughout the organization.
Having an ERP system in place implies having a centralize database to handle the different processes, translating into lower power consumption operating off a centralize database which translates into savings on storage. Savings from this ERP from a minimum uses of storage, coupled with operational efficiencies from a centralize system across all functions translates into measurable revenue for the company.
