ERP Software: Benefits And Implementation

There are lots of benefits of ERP software. Enterprise resource planning software brings improvement and efficiency in business functions and processes. Good ERP software helps you to get transparency and availability of data throughout all business activities. ERP software is able to provide correct information at time to the people for making effective decisions. As these decisions would be derived from correct information, they will furnish positive results and boost productivity.

Another benefit of ERP software is that an organization can customize or modify the ERP software according to their needs. It adopts systems that deal with changing technologies. With the help of ERP software an organization can raise turnover by using same resources. ERP software is also helpful in achieving better efficiency in organization reporting. This software also enhances financial management. Cash in bank, cash in hand, trail balance, top supplier, top customer, balance sheet, ABC analysis, dead stock, WIP (work-in-progress) and other important reports can be prepared at any point of time with the help of ERP software. Enterprise resource planning software helps you to optimize your asset management as well as your human resource management. It makes the supply chain management more efficient as well as improves customer relationship management also. ERP software also facilitates data scalability and data security.

Enterprise resource planning system provides better ROI i.e. Return on investment. Thus there are lots of benefits of ERP software.

Implementation of ERP software is a big step forward for any organization. The move from the old ways of performing tasks and processing information to a new and modern business processing infrastructure is a journey that is as vital as working in the direction of a strategic business deal.

There are some mistakes that are usually committed at the time of implementation of ERP software. One of the common mistakes is not providing proper training to the user. Proper training provides better result from the new system. On the other side, lack of proper training to user may results incorrect entry and can create problems. Therefore top management should understand the requirement of proper and comprehensive user training, as ultimately user is the person who is going to use this ERP software. Many times, some vendors suggest you to purchase less implementation days than you actually need to keep costs down so they can secure the deal. This leaves you with guilt when you discover that you must spend more than you expected to completely use the software. Sometimes there is a problem of resistance to change by employees for numerous of reasons usually entrenched in some type of fear such as a fear that their jobs are in danger or that they will not be able to learn the new system, etc.

Whatsoever the reasons the solution is education about benefits of implementation of ERP software. There is a fallacy that, ERP software is for it departments and only they will get more benefits, but it is not true. During implementation and after go-live, responsibility of it department is much more than other departments.

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Keywords: erp software, implementation of erp software, benefit of erp

By: ROHIT J SMITH

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