ERP Platform: What IT and How You Can Benefit from It

The acronym ERP stands for Enterprise Resource Planning. It refers to platforms and software packages used by an organization to manage day-to-day operations such as accounting, purchasing, project management and manufacturing. ERP platforms work together to define huge business processes and allow the flow of data between them. By collecting data from shared transactions from various sources, the Enterprise Resource Planning platform eliminates duplication of data and provides data integrity in 'true single source'.

Currently, the Enterprise Resource Planning is very important to manage thousands of companies in any industry of any size. For these companies, ERP is as essential as the power to keep the lights on.

Basic concepts of ERP

The ERP system is designed around a commonly defined data structure (schema), and generally has a common database. The platform provides access to business data from multiple activities using common configuration and definition, common user experience.

The key principle of ERP is to collect a wide range of data intensively. ERP , instead of multiple independent database with the action indefinitely in the spreadsheet that is not connected, all users (from CEO to accounts payable) to create the same data that was obtained through a common process, storage, we will make it available. By using a centralized and secure data repository, everyone in the organization can be confident that the data is accurate, up-to-date and complete. The integrity of the data is guaranteed for all tasks performed throughout the organization, from the quarterly financial statements to the only outstanding reports, without introducing error-prone spreadsheets.

Commercial Value of ERP

It is impossible to ignore the impact of ERP in today's business world. As data and business processes are integrated into the ERP platform, companies can adjust departments to improve their workflow, resulting in a significant reduction in results. Examples of specific commercial benefits are:

  • Improved business vision: real-time information generated by the reports
  • Reduced operating costs: through a more streamlined business process than defined
  • Improved collaboration: from users who share data for contracts, requests and purchase orders
  • Greater efficiency: a common user experience in many business functions and managed business processes
  • Uniform infrastructure: from the central office to the main office, all business activities look the same.
  • High rate of user adoption: from a common user experience and design
  • Reduced risk: improve data integrity and financial management
  • Reduction of administrative and operational costs: through a unified and integrated platform

Past: History of ERP

Paper card for mobile device.

The history of enterprise resource planning dates back more than 100 years. In 1913, Ford engineers Whitman Harris, has developed what is known as economic order quantity model (EOQ), which is a paper-based manufacturing platform for production programming. For decades, EOQ was a manufacturing standard. Toolmaker Black and Decker changed the game in the first of 1964, which was a company that was adopted solutions that combine EOQ concepts and MRP (Material Requirement Planning) main computer.

MRP II remained a manufacturing standard until the manufacturing resource plan (called MRP II) was developed in 1983. MRP II introduced modules as key components of software architecture and integrated core manufacturing components, such as purchase, invoicing, programming and contract management. For the first time, different manufacturing tasks were integrated into a common platform. In addition, MRP II showed an attractive view of companies that use software to share and integrate business data, improve operational efficiency, plan production planning, reduce inventory and reduce waste.

As computer technology evolved from the 1970s to the 1980s, concepts similar to MRP II were developed to handle commercial activities, including manufacturing, finance, customer relationship management and personnel data. . For 1990, technology analysts were given the name of this new category of business management software, enterprise resource planning.

Currently: ERP Today

From the local to the clouds.

From the 1990s to the beginning of the 21st century, the adoption of ERPs expanded rapidly. This is because the number of organizations that depend on enterprise resource planning has increased to optimize the company's core business processes and improve the visibility of the data. At the same time, the cost of introducing the platform began to increase. In addition to the costly capital investment of local hardware and software, enterprise platforms often required additional costs for custom coding, consulting and training.

On the other hand, ERP technology evolved to use the Internet with new functions such as integrated analysis. Over time, many organizations have discovered that internal platforms can not meet modern security requirements and emerging technologies such as smartphones.

Enter the delivery model o in the cloud or SaaS (Software-as-a-Service). Software "in the cloud" means that it is stored on the remote server's network, not the company's location. The cloud is a more affordable alternative that reduces both operating costs (OpEx) and capital expenditure (CapEx), since companies do not need to buy software or hardware or increase IT staff. Provide We do not use expensive infrastructure to support, so we can invest resources in growth opportunities. Employees can change the focus of IT management to value-added operations.

Next-generation ERP

Respond to businesses of all sizes.

The mature ERP platforms in the past were often too expensive for SMEs, but the cloud has destroyed the barriers. For SaaS solutions, small businesses can take advantage of tried and tested ERP software, which is the same as the software used by large companies for many years. The solution based on the cloud can be installed quickly without capital investment. Cloud technologies provide the flexibility to quickly add new users and support the changing business needs of small and medium-sized businesses seeking rapid innovation and new business opportunities.

Dedicated and extended opportunities

Cloud ERP extends the central financial architecture to include integrated customer relationship management (CRM), supply chain management (SCM), human capital management (HCM) and business performance management (EPM). , Providing a common user experience with a single data repository. With the improved platform in the cloud, you can manage all departments as if they were a single organization, with better visibility and collaboration. It also provides smooth access to sophisticated reporting functions, such as data visualization and advanced analysis. By accessing emerging technologies such as IOT (Internet of Things), companies can comprehensively understand business activities not only in reception offices, but also in warehouses and factories in a comprehensive manner in real time. This knowledge is immediately available to employees on mobile devices through social tools.

Today's ERP cloud, built for the digital era, employs mobile, social and analytical tools. Less than that does not advance the organization.


Future: ERP Trend

The ERP cloud adopts the next generation workforce.

ERP has moved to the cloud and will not return. The cloud is a path that is not only decreasing in the proven reference base but also in the number of companies that have activated the local platforms. Unlike the ERP inherited from yesterday, platforms based on the cloud allows companies to comply with the requirements of the digital economy. Today's employees need access to 21st century technologies, such as social and mobile networks, with an easy-to-use interface to facilitate information collaboration and information exchange. In addition, it is unlikely to accept obsolete processes, outdated technology and ugly interfaces. Organizations that can not meet these expectations jeopardize the future.

Misunderstanding in Custom Solutions

It is said that the development of custom ERP is more expensive than the "standard" solutions because it is designed taking into account the specific requirements of the company. This is just a misunderstanding. The "ready" platforms are large and correspond to all solutions at the same time. If you implement a "ready-to-use" ERP in your business, you must change it to fit the requirements of your business. Therefore, we need a second level of development for personalization. It also includes an additional fee for purchasing software, personalization fee and development fee.

Compared to packaged solutions, there are many benefits such as:

  • It complies with all commercial requirements. You can make sure that the unwanted functions of the platform are not placed in the commercial process.
  • Custom software has the smallest maintenance expenses.
  • It is cheaper than the packaged tool.
  • Custom software can be easily implemented in modular form within an organization.
  • Reduce the possibility of risks associated with large project cuts.
  • Because the custom platform is based on the commercial strategy, the commercial process should not be formed in accordance with the platform.
  • For static business processes, custom solutions are the best. For example, an accounting book is a static process that does not change significantly over time. For these commercial tasks, the personalized is ideal.
  • Custom software is compatible with experienced developers. In case of finding technical difficulties of implementation and function, the developers have prepared solutions.
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