Enterprise Resource Management (ERM)

  • January 11, 2019
  • ERP

Enterprise Resource Management (ERM) has two meanings:

1) ERM describes software that enables a company to control user access to network resources. For example, the ERM software allows users to access different systems and applications with the same password . A company can use ERM software to control or track which systems and resources each user has access to.

At the same time, it can set consistent standards for creating and changing passwords through the ERM system. The administrator manages the software with access to all platforms (for example UNIX , mainframe and Microsoft Windows ) as well as to the applications within these platforms that require controlled access.

2) ERM also stands for software that manages all the assets and resources of a business. These include basic applications, such as financial accounting and the management of liabilities and receivables from other companies, as well as the management of production, warehousing and human resources.

Now lets have a look at what are the similarities and differences of commonly used term enterprise resource planning  with ERM .

The term ERP refers to Enterprise Resource Planning , which means “enterprise resource planning system”. These programs take charge of different internal operations of a company, from production to distribution or even human resources.

Advantages of an ERP system

The main advantages of these systems are, Automation of company processes,Availability of company information on the same platform, Integration of the different databases of a company in a single program, Saving time and costs.

In addition, ERPs offer integration with BI or Business Intelligence solutions , allowing reports on the status of your company directly with the data of the ERP system. This offers a level of detailed and up-to-date knowledge of the state of the company that is indispensable when analyzing and improving internal processes such as marketing and sales, organization or other key aspects of a company.

Which companies need an ERP system?

An ERP system is suitable for all types of companies , both multinationals and SMEs. In addition, thanks to the different customizable modules, any company, regardless of the different processes that it has or the sector it belongs to, can customize its own ERP. There are suppliers that specialize in the implementation of certain ERP, either by product or sector, achieving better results after acquiring the ERP.

Implementation of an ERP:

The implementation of an ERP is a process by which most companies will go more than once. The detailed study of the data and the needs of the company (blueprint) will mark the way forward in the implementation project.

How long does it take to implement an ERP system?

This is probably the most asked question to ERP providers , however, there is no simple answer. The contract you make with your provider must contain a section in which the approximate schedule of the project is established. You should always bear in mind that this planning is usually estimated, since problems may arise that slow down the functional application of the system.

The implementation time will depend mainly on the type of software chosen, the difficulty of the company’s processes and the necessary modifications to adapt it to the company’s requirements. Therefore, in case an on-premise ERP has been chosen , the implementation time will involve a project of between 6 months to 1 year. On the contrary, ERP in the cloud presents a faster and more intuitive application, so that the implementation deadlines are usually limited in a few weeks.

Functions of an ERP

The functions of an ERP are an important part of the process of acquiring an enterprise resource management system. Each company will be interested in specific business applications, according to internal processes. However, the large number of ERP programs in the market causes a lot of doubts about the available functions. In addition, the different internal configurations of each ERP make the options change depending on the provider or system. In what way can they be added? What types of ERP functionalities are there?

How can more functions of an ERP be added?

To answer this question, first we must consider the following: what type of ERP am I using? Not all business resource management systems allow you to add functions in the same way and are divided mainly into two categories: modular and configurable .

  • Modular functions

Those that through the insertion of modules can add functionalities or, in some cases, much broader than those that they bring from base. In this type of systems it is understood that companies have different departments that are incorporated into the system as necessary. The modules can be included when implemented or a time later, which allows it to grow progressively. One of its drawbacks is that the characteristics of the modules will be decided by the supplier and not by the client. For this, there will be modules that include functions that are not entirely necessary but that will appear together in the same package to those that interest you. To be able to use those ERP functions that interest you, you will have to acquire the complete module, which may entail a higher price.

  • Configurable functions

This type of ERP gives the user the possibility to add their own functions through programming and code. Normally, they take more time than modular ones for installation. This is because you have to familiarize yourself with the programming environment of the Manufacturing ERP , know the different languages ​​or hire an external provider to add the functions on demand. However, by having a personalized development, the adaptation to the processes of the company is more specific. In this way, greater depth is achieved by covering all the workflows and processes in the company.

These two categories of personalization of the functions of an ERP cover most of the market ERP. However, there are some others that include both options, allowing you to acquire modules such as making your own configuration through programming.

What kind of functionalities can be added to an ERP?

The number of functions of an ERP that can be added is quite broad. Some open-source ERPs allow the internal architecture of the system to be modified much more widely. In this way, virtually any function of an ERP that you want can be added. In addition, it must be taken into account that some of these characteristics can also be fulfilled by an independent program and that it does not have to be included in the system. In these cases, it will be up to the decision makers to decide if it is worthwhile to use a specialized program or incorporate functions within the ERP to meet the needs.

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