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?
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:
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?
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
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?
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 .
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.
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?
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.
We are found top on the 20+ years of ERP Implementation experience serving all business levels from big to small in India, Middle-East, Europe, and Africa. We performed scores of ERP implementation of every scale.
We are found top on the 20+ years of ERP Manufacturing Implementation experience serving all business levels from big to small in India, Middle-East, Europe, and Africa. We performed scores of ERP implementation of every scale.