ERP – an indispensable ‘back-office’ software
ERP is most important to businesses because of their improvement in the way your company takes a customer order and processes it into an invoice and revenue – otherwise known as the order fulfillment process. That is why ERP is often referred to as back-office software. (http://www.erppandit.com/ERP-is-an-indispensable-business-tool.html) It does not handle the up-front selling process (although most ERP vendors have recently developed CRM software to do this); rather, ERP takes a customer order and provides a software roadmap for automating the different steps along the path to fulfilling it.
This roadmap shares the identical information at all stages of the transition, from the sales representative to the loading deck, each able to view and input the data. When one department finished with the order it is automatically routed via the ERP system to the next department. To find out where the order is at any point of time, you need only log-in to the ERP system and track it down.
The truth about ERP is that it unifies a company, it allows the customer service team to understand the financial background for a client or to check if there is stock in the warehouse. It allows the warehouse to update the system of whether something is in stock or not, without having to send emails or documents. It minimizes inventory time. There is however a catch. People don’t like to change and ERP asks them to change the way they do their jobs. That is why the value of ERP is so hard to pin down.
The software is less important than the changes companies make in the ways they do business. If you use ERP to improve the ways your people take orders, manufacture goods, ship them and bill for them, you will see value from the software. If you simply install the software without changing the way people do their job, you may not see any value at all – indeed, the new software could slow you down by simply replacing the old software that everyone knew with new software that no one does.
ERP systems are transforming the way organizations do business. They are indispensable tools with a huge impact on both the business and information technology worlds. An ERP system does the following:
Affects almost all organization – irrespective of their size and nature
Forces the competition to change their strategies and processes
Influences business partners to become more competitive
Improves the profits of the consulting organizations
Is the most important tool for business process re-engineering.
Enforces best practice business process in organizations
Fully utilizes the true potential of client server computing to deliver an enterprise product
Change the nature of the information system function and IT professionals
Changes the nature of jobs in all functional business areas
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