Enterprise Resource Planning - Article Example

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The scope here is primarily to evaluate the need of ERP, followed by a thorough understanding of its impact and if its objectives are being met. We gradually move to capture the adverse effects, huge cost implications and losses that an organization may incur consequent to adoption of ERP and not measuring its effectiveness…
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Enterprise Resource Planning Article
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Extract of sample "Enterprise Resource Planning"

Download file to see previous pages While there has been detailed analysis and interpretation in the forth coming sections, a few basic definitions have also been added to facilitate the study here.
It is important that companies have an absolutely clear understanding regarding what is enterprise resource planning before contemplating on its implementation as the urgency to acquire results in a limited time frame most often defeat the very purpose of investing in ERP. While we are aware ERP accelerates results and speed is one of the key drivers, the faster it is implemented the quicker and better are the advantages and delivery in terms of results, however this early process has a huge hindrance, the returns are sought at a shorter period which may blind the companies to foresee long term effects. This deviation from the conventional practice is being largely implemented as far as many companies are concerned. Business process reengineering played a vital role with respect to its implementation. One needs to know the components of Enterprise resource planning beyond the definition to further the interest of ERP .
The most natural outcome of this effort lead to development of gaps between the actual results and the one derived during the process of foreseeing or at planning stage. Customizing ERP without a thought through analysis, merely at the slightest requirement of various stakeholders in the organization, molding of practices followed in the company would inevitably drag the assessment of results beyond the time limits permitted to evaluate its success. Let alone the huge monetarily impact, it also damages basic customer's trust. It is also necessary to understand that mere ERP planning does not guarantee the benefit of ERP. It has to be implemented as planned project after understanding the components of enterprise resource planning.

In spite of having improved the implementation issues what remains static is the manner in which companies go ahead with ERP implementation. The objectives regarding why ERP, need to be very clear to any firm that is planning to implement it. The key ones are listed in the diagram below with enhanced customer service at the top of it as increased customer service is directly proportional to additional business and growth in revenue.

2. Enterprise Resource Planning Approach

The section above briefly explains the key drivers an organization need to consider prior to using the ERP approach. It can be increasingly difficult to manage and measure effectiveness and success of the approach if it is implemented as a need of the times exercise, just for name sake without following systematic procedures. It is important to ...Download file to see next pagesRead More
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