Saturday, August 29, 2009

Benefits of Enterprise Resource Planning Software (ERP)

Usually, an organization thinks to implement ERP (enterprise resource planning) software to align business objective with latest technology solutions, to enhance customer confidence and stakeholder commitment, to optimum utilization of organization’s resources and assets. Typically, an organization is looking for good enterprise resource planning software with advance features and functions.

Benefits of ERP Software

ERP system introduces efficiency and improvement of its business processes.

Good enterprise software helps you to achieve transparency and availability of data across all business functions. It gives right information at the right time to the right people for effective decision making. This decision would be based on accurate information, which will give positive result and increase productivity.

ERP software helps you to optimize your human resource management and asset management. It also improves financial management. Trail balance, balance sheet, cash in hand, cash in bank, top supplier, top customer, ABC analysis, dead stock, WIP (work in progress) and other important reports are ready at any point of time. It helps in achieving better efficiency in organization reporting. ERP software streamlines the supply chain management and improves customer relationship management.

Enterprise resource planning software ensures data security and data scalability: organization can customize the enterprise software according to their requirements. It adopts systems that address changing technologies. It gives better ROI (return on investment). Organization can increase turnover with same human resource. There is a misconception that, ERP is for IT department and they will get more benefits, but it is not true. During implementation and after go-live, IT department responsibility is higher than other department.

Proper training gives better output from the new system. Lack of proper training to user results wrong entry and create problem. Top management should understand the need of detailed user training. Ultimately, user is going to use this enterprise resource planning software.

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Also read about SAP HR Module. Know How to Select ERP Software for your organization for successful implementation.

Importance and Benefits of ERP System in SME Segment

ERP (Enterprise Resource Planning) is a system which integrates various business data in a single database and provides cross function reporting on click of a single button. Earlier ERP was made for large organizations but, now it is made for medium and even for small organizations. In this global competitive market, organizations need to upgrade with latest technologies. Most of the large organizations are using enterprise resource planning system. To deal with those large organization SMEs (Small and Medium Enterprises) need to work on a similar type of technologies. In this case, importance of ERP system for SMEs increases.

Of course, there are lots of business benefits of enterprise software. Apart from all other basic benefits, enterprise software gives an information system with three important capabilities i.e.

1. Consistency and reliability of business data across the organization
2. Streamlined transaction processing within and outside organization
3. Provides operations level reporting on a click of a button

These capabilities, basic and important as they are, ensure that organizations are ready for specific solutions that improve overall performance. The areas that will increase the basic ERP requirements are like supply chain management (SCM) with electronic collaboration between supplier and customer, customer relationship management (CRM), business intelligence (BI), product data management, complete product life cycle (PLC) management, inventory and warehouse management using RFID tools. For these applications, ERP system becomes the substratum, a kind of gateway to expert functions. That is, enterprise software is a sine qua non for other applications.

In fact, the latest trend is that with basic enterprise resource planning software, tailor-made system is given by ERP companies. ERP vendors are speeding-up to integrate most of these additional capabilities. This type of customized or tailor-made enterprise system is easy to install and implement for SMEs. It also takes less time to implement and chances of implementation failure are lesser.

Copyright © Nick Mutt, All Rights Reserved. If you want to use this article on your website or in your ezine, make all the urls (links) active.

Know more on SAP Business One Implementation. Also know How to Select ERP Software and other ERP fundamentals.

Thursday, August 27, 2009

What is the Need of ERP System

The opening up of the global economy has led to a significant development of the small and mid market segment. This growth has been across industry verticals in the manufacturing, retail, services, pharma, telecommunication and information technology sectors. This growth and along with that the new competition and quest for enhancing total market share has led the companies to re-look at its processes and procedures. Now, companies are trying to utilize their all resources effectively to make business more efficient and effective.

In this case, companies are looking for enterprise software and other quality techniques. Companies are implementing different practices to utilize their resource effectively viz. business process re-engineering (BPR), six sigma, enterprise resource planning (ERP), just in time (JIT), Kanban and other quality improvement systems. All these techniques are good and helping companies to provide better quality and lower cost, which is the key factor to sustain a business in this competitive environment.

The implementation of ERP systems has helped small and mid sized companies, significantly improve their business metrics by process optimization, improving the entire supply chain process, better inventory control, better reporting to take decisions, integration across functionalities and increasing transparency across the company. Purchase department can see the sales department data, Sales department can see inventory data, and top management can see any data on a click of single button.

The introduction of ERP in any company has also helped it move up the value chain in term of market credibility and building the confidence of its customer, stakeholders and vendors. Most of the small and mid sized companies were living with in-house developed applications which are non-integrated and on disparate technology architectures. This has resulted in running with redundant technology, loss of support, non availability or less availability of critical information at the right time resulting in overall business loss.

The key drivers of introducing an ERP system in a small and midsized company are introduction of industry standard processes which are already embedded in the application, adopting integration across business functions leading to better transparency, access to real time information, analytical reporting for business decisions and adopting state of the art technology. Another key reason for implementing an ERP vis-à-vis a tailor-made development is the speed of implementation resulting in achieving a quicker return on investment (ROI).

Copyright © Nick Mutt, All Rights Reserved. If you want to use this article on your website or in your ezine, make all the urls (links) active.

Read Benefits of ERP and Definition of ERP – Enterprise Resource Planning system. Also know How to Select ERP Software for your organization for successful implementation.

Tuesday, August 18, 2009

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Copyright © Nick Mutt, All Rights Reserved. If you want to use this article on your website or in your ezine, make all the urls (links) active.

Sunday, August 2, 2009

ERP Implementation Process Steps

ERP stands for Enterprise Resource Planning. It is integrated software for all business processes of the organization. It has is two major parts – software and its implementation. ERP software can be purchased by ERP companies and implementation can be done by either ERP Company or vendor; ERP vendor provides services and consultancy to the organizations. Before implementation of an ERP system organization needs to take consultancy by industry experts. ERP implementation is quite important for the organization, but implementing successfully is a major challenge and organization must have proper road map for the implementation. If one has failed to make proper blueprint for the implementation, the chances of failure implementation will be high. Read how to get successful ERP implementation.

ERP implementation process should be divided in steps. Major focus should be on pre-implementation readiness work, implementation project management and continuous improvement of business systems. At the time of making plan for implementation organization has to think about the future growth and technology changes.

Here implementation steps are divided in 8 phase month wise to organize project data and manage change. It supports complex implementation. Some organization may have very simple process or typical processes. For all type of organization these pre-implementation, implementation, and improvement plan are very important.

In the beginning of the project i.e. first month, you should establish and prepare project resources and control structure. Along with this top level visioning planning and review of best practices should be done by top management. In the next phase which starts from second or third month, you should conduct detailed business process mapping to identify the GAP. It can take two to three months depending on your business processes. During this phase you can develop selected business process objectives and specifications for ERP implementation.

After the detailed process mapping and SRS (system requirement study) study, align the specification for implementation with the business software being implemented with selected vendor. In the next phase you can make plan along with vendor for implementation. Give implementation charge to project manager; one project manager should from vendor side and one form your company. These two managers will be responsible for whole ERP project. In the next phase project will be implemented and in the final phase migrate remaining processes to be supported by ERP software. It will take 3-4 months time.

These implementation steps will help you to implement ERP in your organization successfully without any major problems.

Copyright © Nick Mutt, All Rights Reserved. If you want to use this article on your website or in your ezine, make all the urls (links) active.

Saturday, August 1, 2009

Body Language During Conversation

Body language is very important part of our communication. Most of the communication is done by our body languages. If our body language is good we can be a good communicator. To identify the differences between good body language and bad language during conversation one should understand the basics of body language. Body language can be identify when taking instructions or receiving criticism from a supervisor. You can practice good body language during a conversation and practice good body language while a manager is giving instructions or criticizing.

Instructional format is mainly involved modeling and role-playing. Start the session by taking about the importance of how one looks on the outside during communications with others. If a person looks unresponsive during a discussion, he will have a hard time making and keeping associates. If a person looks irritated or annoyed when his boss tells him to do something, his boss may think he has awful approach. It is supportive to video-tape role-plays. If you have the tools, it is highly suggested.
Model both bad body language and good body language during a discussion. Have the person try to recognize whether you have good body language or bad body language. Good body language involves keeping good individual space, making eye contact, sitting or standing up straight, and looking concerned. When you are doing the awful role-play, do only one thing wrong (stare at the floor, turn body to one side scowl, fidget, rock back and forth cross arms, slump, etc.), and see if the person can recognize what you are doing incorrect. Instruct person on good body language during discussion and when supervisors are giving instructions. Have the person practice the skills in role-plays. The components of good body language during spoken message mainly involve not doing the bad things mentioned above. But, it is vital to take care of eye contact, keep still, personal space and posture.

Maintain eye contact by looking at the person the majority of the time, but not more than 15 seconds at a time. Don’t fidgets shake back and forth, play with hairs or cloths. It is hard to chat when you are 10 feet apart, but you do not wish for to be 6 inches apart either. Generally, 2-3 feet is a comfortable distance for most people during conversation. Sitting up straight or even openness toward the speaker lets the person know you are paying attention.

Read comprehensive List of Best Home Based Businesses ideas and oppourtunities. Know How to Get Niche Market for affiliate marketing to make make money online.

Copyright © Nick Mutt, All Rights Reserved. If you want to use this article on your website or in your ezine, make all the urls (links) active.