What are ERP Systems
The ERP systems are a type of tool software that helps in obtaining information and decision data within each organization.
Today we are in an era in which information is generated every
second instantly in all organizations and at each of their levels, in the
business environment, having the necessary information at hand could mean a
profit or a monetary loss, through the last decades, Enterprise Resource
Planning systems have appeared and evolved to help in this sector, better known
as ERP , they are a type of software that allows companies to control the
information that is generated in each department and each level of it.
The purpose of ERPs is to integrate departments , where before
there was a specialized information system for each organ of the company, ERPs
are capable of generating a clean database, where information is managed in
real time and can be obtain the required data at the time you want.
Like any software , it works based on a programming
platform, followed by the management of an endless number of databases
corresponding to the different departments to be integrated. ERP systems are
organized through modules , which are connected to different databases.
Depending on what is required for each department, there are
2 types of ERP, proprietary and open source, proprietary ones are made by
for-profit companies that sell their software and implement them to companies
that request it at a high cost, to be able to use them it is necessary to
obtain a license plus the cost of implementing the software in the company (eg
SAP).
Unlike open source ERPs , these are made by communities of
programmers who, without profit, distribute their ERPs at no cost, although
this does not mean that it is completely free, since the implementation
generates a cost in the company and it is necessary a trained person to do it
(known as " partners ").
1. The
hardest work of an ERP is the development of it , although there are the same
ERP's for different companies, it does not mean that they perform the same
functions, this happens because each company is different and therefore needs a
personalized development of the different modules that the company uses the
most.
2. The
second step of the ERP is the integration of the same within the company ,
there are really very few companies that manage to integrate these systems from
the beginning of the same, that is why the implementation lasts longer than
expected.
3. The true
success of ERP lies in the following, once the system has been correctly
implemented, it is much easier to develop new modules, departments and systems
as is the case of companies where their products, sales areas, etc. inputs etc.
Impact of ERP on the company
Currently with the rapid growth of companies and the need
for better management of resources and processes, it is of great importance to
have a tool that helps companies better coordinate their assets, processes and
resources; that is, an ERP (enterprise resource planning) system.
The advantages of having an ERP system are many:
1. First, it
allows integrating all business processes, optimizing resources in various
areas such as: human resources, finance, operations, among others.
2. Other
advantages are that it allows you to increase business productivity, have
better control of costs and in general, better control of the entire company.
A very important aspect is that ERP systems increase the
availability of information , allowing the company to have information in real
time both for decision-making and to make more accurate forecasts about the
company's performance.
It is important to note that the ERP system is a powerful
tool to process and interpret financial information more effectively ,
improving business performance both in the short and long term.
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