Importance of ERP

Communication is the most important thing in life. When it comes to various departments in any organization, it is all the more important. There is an enormous flow of information and data in any organization on day to day basis. Most of the technical, commercial, and financial data related to day to day activities must be captured in the form of history with respect to time, money, and efforts spent on these activities. It is a must for any progressive organization. 

Any miscommunication or loss of data can pose serious problems in the smooth functioning of the organization which is not desired.Ex. If any job requirement in the field is not communicated to maintenance department in a standardized and accepted manner, the result can be mishaps and undesirable situations. 

ERP (Enterprise resource planning) offers the standardized platform which takes care of all desired parameters in a structured manner required for the best performance of all departments in a company. 

The basic concept it works on is organizing the available data in a structured format, mapping the existing work flow in a standard work flow process and capturing the desired data by entering the same in the respective module. 

ERP offers enormous benefits. To list a few, 

1. Fast and accurate communication in electronic format.
2. Capturing of important data with date and time.
3. Accurate scientific and logical inventory management.
4. Perfect integration and transparency among all related departments in the organization.
5. Automatic generation of preventive maintenance schedules.
6. Centralized data base management.
7. Availability of various cost reports.
8. History of man-hours for a particular job/month etc.
9. Similar reports related to HR, MM, FM, PS and other modules of ERP.
10. It eliminates loop holes in the existing system.
11. It gives opportunity to analyze the past in the present for the better future.

The success of the implementation depends on the understanding of the concept to the core by team members. Many a times it is observed that end users are not happy with the product when it comes to the daily use. For sure, the failure is of the implementation and not the product. Products like SAP PM, Oracle EAM enter the market only when these are thoroughly tested, proven and approved by intelligent and experienced persons in the field.   

By handling the “change management” professionally, ERP implantation can be made successful.