Enterprise Resource Planning Essay Example | Topics and Well Written Essays - 2500 words

Enterprise Resource Planning - Essay Example Therefore, it becomes essential to revamp these to attain maximum output within the existing resources. The process of revisiting the existing performances, processes or parameters in order to revamp them and improve them to make goals and targets more achievable is called Business Process Re-engineering. They are also denoted by the terms, Business Process Re-design or Business Process Improvement. ERP systems are a single interface integrated systems that enable data sharing and complete management control throughout the organization over multiple departments. It encompasses all aspects of the organization from planning to delivery. Although in theory these systems are supposed to be extraordinarily useful in concept but in reality there are a number of failed implementations of ERP, a very few documented but most of them not being recorded for fear of publicity. ERP systems are expensive and time consuming and therefore failure of the implementation often spells disaster for the company. The ability to utilize and expand on the existing system and put it to better use often demarcates success and failure for the organization Enterprise resource planning is employed to plan and manage the available resources in a company. It is basically an integrated software system that manages the entire range of business processes inclusive of purchase, inventory control, personnel, shipping and financials among an exhaustive list. In essence, an ERP is typically a single database platform of complete information sharing allowing the comprehensive range of inputs and outputs from and to all the departments Challenges in the Implementation of ERP Systems It is clear that for an ERP system to be successfully implemented, they have to be integrated with all the processes and procedures in the enterprise. This is necessary since this integration helps them to function as an entity and enable it to work effectively. When implemented correctly they add enormous value to the company but when not properly implemented, they may poses risks to the company in the industry and business environment, user or management behavior, create bottlenecks in the processes and system functionalities, and jeopardize ongoing business continuity and maintenance time frames. Because the nature of ERP is such that it's a company wide concern, all the risks associated with it need to be looked at as a whole, with respect to organization vision. It cannot be controlled in isolation with respect to a single process alone but has to be considered in close alignment to business objectives and organization goals. Any process that is to be integrated into the enterprise must be evaluated for its capability to meet organizational goals. Once the process has been identified to be integrated, then it is prudent that the process is considered a " best" practice