The last 24 months have seen the ERP (Enterprise Resource Planning) industry undergo a complete metamorphosis. Industry players can brace themselves for exciting times ahead with more advances expected as well as increased opportunities for improvement.
Although it is not easy to discuss the whole scope of SAP ERP in a single article, there are a number of emerging trends in the industry that both buyers and implementers need to look out for in the coming months.
Let’s discuss some of them in detail:
(1)Customization is gaining traction in the mainstream
For a long time, company executives have been averse to the idea of adjusting some of the ERP implementations to suit the needs of their particular business environments. New ERP systems are trying this to address this concern albeit in small doses.
(2)Power shift from business stakeholders to experts
As the systems become more and more complex, the need for IT is increasing thereby adversely affecting the business aspect of implementing ERP as well as other business software initiatives.
(3)Need for expertise in project recovery emerging
With continued growth in the ERP sector a hike in ERP failures is inevitable. Those with the necessary skills to recover botched ERP implementations will find themselves in high demand. Project recovery requires a deep understanding of what exactly is causing the failure.
(4)Decrease in demand for cloud ERP
The emergence of third-party hosting has meant that there are cheaper options for companies that had intended use cloud technology. This is expected to be the norm and not the exception for most companies.
(5)Technology integration on the rise
With the availability of new tools, it is easier for companies to integrate a combination of two or more ERP systems. This was not the case before and there were numerous cases of companies burning their fingers while trying different combinations.
With the dynamic nature of the ERP industry, it is important for players to stay on top of their game in order to be ready for whatever is thrown their way.
Implementation of Enterprise Resource Planning.
Enterprise resource planning is software for business management, and its implementation can benefit the business to a very high extent. It is a suite of the integrated applications that company can use to store, collect and also interpret the data from many of the business activities. It includes product cost and planning, service and manufacturing delivery, sales and marketing, inventory management, payment, and shipping.
Enterprise resource management provides a very integrated view of all the core business processes, and this is most often done in real time. It uses the standard databases that are maintained by the database management system.
The implementation of this kind of planning can cover a lot of functional areas. These functional areas are as follows.
- Management accounting that includes costing, budgeting, activity based costing and cost management can be covered under ERP with many enterprise resource planning examples available from multiple providers around the world.
- Financial accounting that includes fixed assets, ledger, payables and receivables are easily covered.
- Human resource management that includes, training, recruiting, payrolls, benefits, separation and retirement are also covered.
- Order processing, order entry, order for cash, pricing inventory and shipping are key areas that are easily processed because of enterprise resource planning.
- The entire area of supply chain management is also covered because of this business software.
- Project management is another important area of business that can be managed effectively.
It can easily be assumed that Enterprise resource planning can cover numerous areas of the firm. It just requires the user to simply implement it in an effective manner.
The process of implementation includes a few important steps that must be followed without fail. These steps include process preparation, configuration, two- tier enterprise resource planning, customization, extensions and also data migration. All these steps must be followed mandatory to successfully implement enterprise resource planning into your business.
The business software that is this kind of planning has numerous advantages and benefits associated with it. These include sales forecasting that enables the optimization of inventory, the tracking of orders, tracking of revenue and also matching all the purchase orders. It actually eliminates the need of synchronizing the changes that are present between the multiple systems by bringing in legitimacy and transparency.
Apart from the above-mentioned benefits it provides a very comprehensive view of the enterprise and protects all the sensitive data of the business or the company. These are reasons for the success of enterprise resource planning easily.