What is ERP?
ERP – Enterprise Resource Planning
1) What is ERP?
2) Why ERP?
3) How many ERP products available
4) Evolution of ERP
5) Challenges in Implementing ERP
ERP is Enterprise Resource Planning, Just an expansion. How is it useful. Who need it.
Let us take an Industry, it can be any type Manufacturing or Trading or Banking ……
In the case of Manufacturing, there are two types 1) Discrete 2) Process
What is Discrete? Any manufacturing industry which rolls out in the end one finite product. How?
Let us take Cars. Lot of Raw materials goes and form assemblies through process routing and these
assemblies make different components and all of them assembled, finally one CAR is rolled out as finished product. So one finished product which comes out as final product. To manufacture a CAR, something called BOM (Bill of Materials) which tells in hierarchy various components/Raw Materials to make one one final product.
What is Process? Any manufacturing industry which rolls out multiple products as finished products or we can also say to produce a finished products, many bi-products also produced. Examples can be Cement /Chemical Industry ……
ERP is required to automate and integrate all functions in any industry, One stop solution.
Today we have mainly Oracle Applications, SAP and there are many others in the market.
Evolution of ERP – It started of with MRP (Material Requirement Planning), It does mainly planning
of materials required for production, then came MRP II, got integrated with Material stocks, bit of capacity planning, Vendor processing, Procurement.
At this stage, still customers felt, mainly Finance, HR, Payroll, Time Management, Recruitment, Learning Management, Talent Management, Performance Management are not integrated and they stand separate modules and interfaces are cumbersome to talk with different modules.
Challenges are many. Let us discuss on broad aspects
1) Customer, mainly end users should have complete clarity on the functions day and day out they use, I mean they should clearly explain to the Implementer. Several Iterations would be required
2) Functional Consultants should have complete domain knowledge of the module apart from product
configuration skills. I mean they should have thorough understanding of the process and should
understand the pains of end users and should be able to ask right questions to extract not only for
the current requirement but on global perspective.
3) Technical Consultants should work closely with Functional resources