Enterprise Resource Planning Software

Enterprise Resource Planning Software – Undoubtedly, the competitive environment that exists in the business world today requires processes and promote business activities that generate the competitive advantages of companies to its strongest competitors.

Thus, for several years now, there has been greater emphasis on Information Technology and its alignment with business strategies to improve their key business processes. Proof of this is the very substantial increase in procurement package of business software such as ERP (Enterprise Resource Planning), with which the managers of the companies expect to have integrated all areas or departments of the company that support for the generation their products and services.

This article aims to collect different opinions concerning; What are ERP ?, What are its benefits? What are their impacts on companies? It is hoped that the information gathered will serve to give the reader a better picture of the ERPs.

Enterprise Resource Planning (ERP)

Undoubtedly, the competitive environment that exists in the business world today requires processes and promote business activities that generate the competitive advantages of companies to its strongest competitors.

Thus, for several years now, there has been greater emphasis on Information Technology and its alignment with business strategies to improve their key business processes. Proof of this is the very substantial increase in procurement package of business software such as ERP (Enterprise Resource Planning), with which the managers of the companies expect to have integrated all areas or departments of the company that support for the generation their products and services.

Today more than ever companies need tools that provide control and centralization of information, this in order to make the best decisions for their business processes and strategies. The ERP is a robust solution for companies seeking a universal solution to the centralization of information.

Implementing an ERP system is generally long and complex, as it involves redesigning work schedules. Its implementation is high risk because it involves complexity, size, high costs, a substantial team development, and investment of time.

In most companies, it is necessary to replace the existing infrastructure, which implies additional capital investment, specialization and even the possibility to stop business temporarily for implementation: on the other hand is important to note that the degree of experience of suppliers It is important for the proper functioning of the system factor.

Methodology

For the development of this article, we took into account various literature sources such as: digital library of the Monterrey Institute of Technology and Higher Education (ITESM), ITESM Campus Monterrey library, electronic journals and various consultations of the Web. The various points of view of each of the authors consulted were analyzed and most importantly took their views.

What is ERP?

The ERP is an integrated business management system that is designed to model and automate most processes in the company (area of ​​finance, trade, logistics, production, etc.). Its mission is to facilitate the planning of all company resources

Moreover, Kumar and Hillengersberg (2000) define the Enterprise Resource Planning (ERP) as “packages configurable information systems within which information across functional areas of the organization integrates”. ERP systems are extremely expensive, and once the ERP systems are implemented successfully brings a number of important benefits for businesses.

Orton and Marlene (2004) define systems enterprise resource planning (ERP) as a system to collect and consolidate information across the company.

Reuther, D. (2004) in his article “Critical Factors for Enterprise Resources Planning System Selection and Implementation Projects Within Small to Medium Enterprise” mentions that KC Laundon and J.P. Laundon (2000) define systems enterprise resource planning (ERP) as a business management system that integrates all facets of the business, including planning, manufacturing, sales and finance (this can be shown in Fig. 1) ERP planning software and automates many processes with the goal of integrating information across the enterprise and eliminates the complex links between systems of different business areas.

The highlight of ERP is that unifies and directs all company information in one place, thus any event is visible immediately, enabling decisions more quickly and safely, shortening cycle production. With the company ERP we have under control and will increase the quality of our services and products. The implementation of an ERP involves removing interdepartmental barriers, information flows throughout the company eliminating improvisation due to lack of information .

ERP (Enterprise Resource Planning) is an evolution of MRP systems, which were focused only material planning and production capabilities. ERP have tools to make the planning of the work plan.

This planning is carried facing material requirements and capacity to manufacture products with stocks and unallocated capacity. They offer the most complete ERP modules for finite capacity planning. The ERP is the core of other applications such as CRM (Customer relationship management with clients), Data Mining (Conversion of data into useful information), etc. (Www.adpime.com)

Ramiro Rodriguez (2003) in his thesis “ERP in the management of construction projects” mentions the importance of that to implement an ERP system must form a team with more experienced people in their areas, usually it is mentioned that “if companies can operate business as usual without the people they have in the implementation teams, then you have selected the wrong personnel for the ERP project. ”

The team should include technical people (who know how to work with the ERP system) and business people who understand how the company operates, as shown in Fig. 2, although it should be recognized that the two is more important expert staff the business. The right person to manage an ERP project must meet both areas.

In short, ERP systems unify information from different areas (finance, human resources, sales, manufacturing, etc.) manufactured in one place, making it easier decision making within the company. The ERP software automates many processes and plans with the goal of integrating information across the enterprise and eliminates the complex links between systems of different business areas

Implementation of the ERP is not easy, it requires a long period of implementation, and integrate various factors that lead to successful implementation. All business areas play an important role, from top management to the Department of Information Technology. It is important that users are convinced of the benefits to be gained with the ERP, as this will facilitate the implementation in the company.

Previously only large companies could acquire such systems, this due to the high costs, however at present small and medium companies are making inroads into the implementation of such systems.