ERP Computer Software Web Tips Guide
ERP Business Systems
By Dirk C Wallace
ERP refers to enterprise resource planning, which is comprised
of both hardware and software that operates on a Local Area Network.
Initially, these systems were used primarily by big manufacturers,
but today they can be found at nonprofit organizations, government
agencies and non-manufacturing companies.
An ERP system of today would most likely include payroll processing,
sales order processing, online sales, human resources, financials,
CRM solutions (customer relationship management), warehouse management,
product life-cycle management, supply chain management (purchasing-manufacturing-distribution),
and a decision support system.
A Totally Integrated System
Clearly there are many pros to having an ERP system for your
business. First off, you have a totally integrated system, which
gives you the chance to review your options and all the information
you need right at your fingertips. Who wants the hassle of learning
different interfaces and programs, when you can have it all in
one, organized piece of software?
You’ll be able to easily share data with other departments and,
as a result, customer satisfaction and service will be improved.
You can lower your costs by choosing one company to work with,
rather than multiple consultants. You’ll improve efficiency and
productivity, not to mention your tracking and forecasting will
be more accurate.
Complex, Costly And Difficult To Customize
Yet despite all the advantages, ERP systems are still pretty
complex, costly and difficult to customize. A recent 150-executive
study conducted by CFO Research Services found that the initial
investment to roll out ERPs was astronomical.
Half the respondents from mid-sized businesses said they paid
over $1 million for the license, service and year one maintenance.
Nine out of ten said they spent at least $250,000, which did not
include project management, employee training or IT support.
Cost To Update Or Modify ERP System
Over the years, executives will shell out even more money for
service help, upgrades, customizations and maintenance for their
systems. In fact, the average company spends $1.2 million each
year to update or modify its ERP system!
Still a little bit lost when it comes to the inner-workings of
the ERP system? Don’t worry, you’re not alone. "We all like
to talk about CRM, love to talk about ERP and all kinds of other
three-letter acronyms," confesses SAP spokesman Leo Apotheker,
"but the only people who never understood those are businesspeople.
We want to talk the language of these people."
Complex And Mysterious
He admits that the systems have been viewed as complex and mysterious
for years, although software as a service and on-demand ERP systems
are starting to help people understand a little better.
Even so, the worker bees aren’t likely to jump at the chance
to learn a completely new system, which is designed to monitor
their every move in the workplace, so executives will also need
to come up with a way to boost employee morale, while ensuring
that all staff is appropriately trained in the new system.
About the Author:
Dirk C Wallace has written a number of articles on Business Software, Computers and Internet Security including
Business Tax Software,
Customer Relationship Management CRM,
Customer Support,
CRM Software,
Mind Mapping Software,
Turbo Tax Software,
Adware Spyware Removal Program
Computer Security Handbook,
Computer Instruction.
Keep a lookout for more of his articles on this website.
Did You Know This About CRM Software?
Is your company guilty of losing important data files or having
an antiquated phone system? If so then you need to find out more
about customer relationship management. If you can master the
intricacies of the business world, you can have a business that
flourishes.
But to do so you need equipment and knowledge that will keep
you ahead of the competitors. It is not enough to just scrape
by. You need to succeed. You need to retain your current customers
and attract new ones so that your business will grow.
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