Monday, June 14, 2010

ERP's


Enterprise Resource Planning softwares are, simply defined, software systems that try to integrate all of the company's departments in order to make certain processes and information more efficient and available. The need for ERP's comes from the idea of streamlining business processes. So instead of employees in the sales department calling the warehouse in order to check the inventory of a certain product, they can find this information readily available in the ERP. ERP's can be implemented in many different types of companies from financial services to human resources companies.

At first glance, every business owner and CEO would think that having ERP is the best decision a firm can make, however, this software integration platforms are very expensive and often times don't meet the expectations of the firms. It is critically important for managers to analyze whether their business is adaptable to an ERP. This poses the question of whether businesses have to adapt to ERP's or vice versa?

In my opinion, businesses are clearly the ones who have to adapt to these ERP's. Even though consultants claim that they can personalize ERP's to businesses this usually leads to glitches in the system and unforeseen scenarios which can be more costly in the first place. Ideally, it should be ERP's who have to adapt to business but realistically if a firm decides to implement this type of system they should be willing to modify and adapt their current procedures to the ERP.

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