An ERP system can be described as a flexible and upgradeable commercial package which supports, in real time and in a cohesive manner, the management of most, if not all, an organisation’s processes.
An ERP system may have different meanings
for different people within an organisation, depending on the role they play
within that organisation. A Plant Manager would require different strengths in
an ERP system as opposed to, for example, a Human Resources manager. This, of
course, assumes your organisation has different people in these roles.
However, whether a person runs their own
business where they complete all functions, from the accounts to purchasing of
stock, to the managing of staff (including themselves) or if they are part of a
larger organisation, they need to ensure that their ERP system has three main
components when assessing it for implementation.
Integration refers to the connections
between business processes as well as the connections between hierarchical
levels. Integration and implementation of an ERP system can be broken
into three aspects:
Technical – which refers to the interconnectivity of IT from hardware and software perspectives.
Inter-organisational which refers to the linking between two or more independent organisations
Co-ordination and co-operation between project teams and other business processes.
The evaluation of an ERP system is normally
based on how well it handles systems and process integration as well as how it
deals with organisational (hierarchical) integration comes strongly into play
The flexibility of an organisation refers
to its ability to respond positively and quickly to changing conditions in its
environment using its current resources as well as its ability to absorb the
introduction of new products and technology.
Briefly the flexibility of an organisation
can be assessed on :
A time-based dimension – how fast does the organisation take to react to changes.
Range – what options are available to the organisation to accommodate those changes.
Intention – is the organisation proactive or reactive to change.
Focus – how internally or externally focussed is the organisation to those changes.
An ERP system is assessed on how well it can accommodate these dimensions.
The process concept is of primary
importance to transversality. It is basically defined as
processes linked in an ordered manner which transform inputs into outputs
repeatedly. Emphasis is laid on value-adding actions, ease of repetition and
The transversality of an ERP system may be
assessed by the extent it meets the following conditions:
Use of a common “language” across its functions.
How customer focussed it is.
Facilitation of co-operation.
Holistic view point.
Reduction of costs and delays
Facilitation of increased learning.
Standardisation and co-ordination across functions.
As it is very difficult to design a system
where “one size fits all” and for it to be cost-effective across the board to
implement as well, it would be advisable to analyse the business (and budget).
Then decide which areas take priority and to ensure the ERP system purchased:
has the above mentioned characteristics,
will meet those immediate needs and
has the ability to grow with your business in the foreseeable future.
Accounts ERP Software Solution has 7 options (bundles) designed with
various business stages in mind so that the package grows with your business.
Particular functionality in one bundle may be purchased separately and included
in another so your ERP software can be specifically tailor-made to your
https://erpnews.com/v2/wp-content/uploads/2019/05/ERP-System.jpg399600katiehttps://erpnews.com/v2/wp-content/uploads/2018/10/[email protected]katie2019-05-08 07:42:112019-05-20 08:58:54What are the main characteristics of an ERP (Enterprise Resource Planning) system?
Do You Know How ERP Systems Have Evolved Up Until 2019?