Enterprise Resource Planning
Enterprise Resource Management Planning for Business Success
The Youtube video covers Enterprise resource planning (ERP) which is a process that integrates all external and internal management information across an entire business organization. This process embraces the finance/accounting, sales and service manufacturing, customer relationship management and other aspects of an organization. ERP systems fully automate all of this organizational activity with integrated software whose purpose is to help with the flow of information in the path between all of the business functions inside an organization and also manage the connections to stakeholders on the outside. ERP software can run on a wide variety of network and hardware setups (Stanbury, 2010).
The uses of ERP are versatile, including in human resources, asset management, supply chain management, privileged access control, marketing, customer and supplier relationships as well as project management. For instance, everything from customer resource management to purchase orders, etc. It works equally well in a wide variety of other reporting modes. In essence, it links hardware, electronic and software systems into one seamless system. Savings are immediate in terms of productivity due to interoperability, integration of reporting procedures, sales reporting and accounting (ibid).
The learning objectives:
1. In this video, the viewer will learn that ERP provides a seamless integration of information systems across the breadth of a business organization.
2. They will learn the benefits and savings that can happen due to this integration inside and outside of the organization.
3. The viewer will realize that organization can be made better outside as well as inside the organization.
4. A link to the video can be found at (http://www.youtube.com/watch?v=rnXIDrpQg2M).
These information systems typically employ a customer resource management (CRM) database as an information repository. ERP systems usually include a completely integrated system that operates in real time (or next to real time), without relying on periodic updates, a common database supporting all of the applications. consistent look and texture that is throughout each installed module. The installation of the ERP system can be accomplished without overly elaborate application/data integration by the information technology (IT) department of a moderately sized company (Leon, 2008, 5).
The scope of ERP usually implies many significant changes to staff work processes and practices. Generally, three types of services are available to help implement these many changes, including consulting, customization, and support. ERP systems are advantageous in that they centralize business. The benefits of this centralization includes the elimination of the need to synchronize changes between multiple systems, including the complete consolidation of finance, marketing and sales, human resource and manufacturing applications. Even difficult integrations are possible such as standard product naming and coding. ERPs provide a comprehensive enterprise view that makes real time information available to management anywhere any time in order to make proper decisions. From a security standpoint, ERP protects sensitive data by consolidating multiple security systems into a single informational structure (Davis, 2009).
On the down side, disadvantages for an ERP can be that the system customization is problematic. Also, re-engineering business processes to fit an ERP system may damage competitiveness as well as divert focus from other critical activities. ERP can also cost more than less integrated and/or less comprehensive solutions. High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade expenses. Integration of independent businesses or sub-organizations can create unnecessary dependencies. Extensive training requirements take resources from daily operations (Umble, Haft & Umble, 2003, 243).
The centralization and integration of information has usually good for business. While it can have some problems, overall, it usually produces significant savings in saved time, wages and effort in the seamless integration of hardware and software into one system. In addition, product and service delivery is much smoother and more consistent, improving customer perception of the brand name of the product or service. If delivery is not smooth, customers may perceive a brand or product in relation to similar products offered by competitors in the market. Marketers usually try to create brand position through advertising and promotions in an attempt to influence customers’ perceptions of their brands. In today’s world of busy schedules and nonstop messages, companies need to find different ways to efficiently position their brand. By properly processing customer information and making the necessary processing changes internally, products and services can be organized more organically and naturally to fit a businesses structure and coordinate between stakeholders in and out of the business. This makes ERP a worthwhile activity to support a business.
Davis, N. (Artist). (2009). Enterprise resource planning: dr. norma davis. [Web
Video]. Retrieved from http://www.youtube.com/watch?v=YtZ1jlKqMoQ
Leon, A. (2008). Enterprise resource planning. New Delhi, India: ata McGraw-Hill
Publishing Company Limited.
Stanbury, M. (Producer). (2010). Enterprise resource planning video. [Web
Video]. Retrieved from http://www.youtube.com/watch?v=rnXIDrpQg2M.
Umble, E.J., Haft, R.R., & Umble, M.M. (2003). Enterprise resource planning:
implementation procedures and critical success factors. European Journal
of Operational Research, 146, 241 — 257.
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