Enterprise Resource Planning (EPR) has quickly become a must have tool for any business
Enterprise Resource Planning (EPR) has quickly become a must have tool for any business. In the past, businesses have been forced to maintain separate databases and spreadsheets that contain various pieces of their data puzzle. Often these databases were proprietary and would not speak to each other, forcing workers to enter the same data into multiple places. This often led to errors due to human error or accidently not entering the data into all of the required places. As the errors compounded, the data became unreliable causing the loss of confidence both internally and externally. In the 1990’s this problem began to be addressed for large businesses. Unfortunately, the early versions were not always successful. This was due to the fact that the solutions were rigid and less scalable. No two businesses are the same, if a solution worked for one it would not work for another. Once scalability and the modular approach were adopted this problem became less of an issue. Today, ERP is the tool that can incorporate all aspects of business into one system. Once consolidated and speaking the same language, ERP systems can integrate planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, and more. Because of the introduction of scalability and the ability to select which modules are needed the software has become much more user and business friendly.
When properly implemented, ERP can be a very positive experience. When the solution is not properly implemented the results can be less than ideal. Some common pitfalls to ERP are the lack of planning and the lack of buy in from the bottom up. Before selecting an ERP solution there are several items that need to be addressed. The first, and maybe the most important, is to determine what is really...