Few major areas where ERP plays a vital role
1)Accounting and Finance Components: Manage accounting data and financial processes within the entreprise with functions such as journal, ledger, accounts payable, accounts receivable, budgeting and asset management.
2)Production and materials management components: Handle the various aspects of production planning and executing such as demand forecasting, production scheduling, job cost accounting and quality control.
3)Human Resource Components: Track employee information including payroll, benefits, compensation, performance assessment and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities.
Extended erp components
1)Business Intelligence: Information that people use to support their decision making efforts.
2)CRM: involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability.
3)SCM: involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
4)E-business: means conducting business on the internet, not only buying and selling, but also serving customers and collaborating with business partners.
ErpImplementation Approaches
The big bang – install a single ERP system across the entire organization
Franchising – Independent ERP systems are installed in different units linked by common processes, e.g., bookkeeping.
Slam dunk – install one or several ERP modules for phased implementation of key business processes.
Major Phases of ERP Implementation
Initiation – develop business case, project scope, and implementation strategy
Planning – establish implementation team, determine goals and objectives, establish metrics
Analysis and process design – analyze and improve existing processes, map new processes to be adopted by the system
Realization – install a base...