The ERP or as improving the management of the company with a single tool

Improves decision-making, your processes, security of your transactions, and organizational development of your business

An ERP system (Enterprise Resource Planning) is a software that includes all the basic functions of a company (sales, purchasing, inventory, production, treasury, accounting, etc.), in an integrated manner, automating processes and providing a data set and quality information. This information once analyzed and interpreted helps correct decisions in business, becoming a competitive advantage for them. So we can conclude that the degree to which an ERP becomes a real competitive advantage will depend largely on the people who make the decisions.

Nobody discusses the importance of an ERP system in the management of companies (regardless of their size, small, medium or large), and the positive effects it produces, which can be grouped into five main sections:

Improved decision-making process:
By providing reliable data and information in real time (no data to make decisions and take everything to intuition, with inaccurate information or data “two months” makes a negative influence on decision making). As we know “everything that can be measured can be improved” and measure as important as indicators the available data is “quality”. At this point it should be considered to make decisions not only need data, but it is also essential to have a methodology
“” “Without data, you’re just another person with an opinion.” W. Edwards Deming

By integrating all areas of the company, management has a “panoramic” view of it and a single data from any perspective
“” Efficiency is doing things right; effectiveness is doing the right things “. Peter F. Drucker

2. Improved processes and optimizes resources:

Improves the development of the strategic process. Data and information not only allow us to make better decisions, but also serve as a basis for the development of the strategic process of the company in all its phases (Analysis-Planning-Implementation-Review). In addition, the ERP provides tools that help manage and control strategy (eg budget accounts or providing support for the design of a Balanced Scorecard), enabling us to measure the deviations with the objectives and take corrective action
“” The best structure will not guarantee results or performance. But the wrong structure is a guarantee of failure. “Peter Drucker

Improve efficiency. Automating and simplifying processes performed manually and eliminating duplications thus saving time operations, ultimately improving the competitiveness of the company. The clearest example is the automatic posting from sales management (sales, purchases, receipts, payments, asset management, … ..)
“” If you want different results, do not do the same. “Albert Einstein

Controls and reduces the actual inventory. The first ERP provides inventory control (both value and units). From this control you can establish a policy of reducing shrinkage (for errors or theft) and reduced own inventory by improving procurement planning. We must bear in mind that excess inventory in the company is one of the 8 wastes (known as molting) Lean Manufacturing
3. Improving the security of all transactions and information. As it provides greater security for users (through permits and access) and on the traceability of processes (allowing always know who has added a document, which has been modified, printed or deleted). This security is lost with other tools (such as “famous” spreadsheets)

4. Improved organizational development:

Facilitating learning and personal development. The own ERP system generates a “way of working” integrated, sharing information, promoting collaboration among all areas, teamwork and achievement of the objectives jointly. In addition, it accelerates the learning process and training of new workers in the organization
“” The ability of an organization to learn and convert into action quickly learned, is its ultimate competitive advantage. “Jack Welch

Facilitating the adaptation and flexibility of the company to a changing environment (VUCA: volatile, uncertain, complex and ambiguous), where every day we need more information and faster to adapt (become more “liquid”) to new circumstances and / or ways of working. ERP facilitates the management of change in the company acting as a true inductor the same
“” Life is 10% what happens to me and 90% how I react to it, “Maxwell .John

5. Prepare the company for e-commerce. The ERP becomes the basis for managing electronic platform comerci0 because online stores a very important and indivisible part of their daily activity is logistics. It depends on all orders to prepare properly in the warehouse, and transportation of purchased products to the final consumer at the agreed time is made. This requires “feed” the online store data (products, prices, deals, minimum unit sales, payments, tax rates, customers, etc.) and on the other hand receive the same, orders, receipts, etc. ERP facilitates the flow of information in both directions in an automated manner, avoiding mistakes and making information flow in real time

All these improvements produce very positive effects on any company, but perhaps there are two major changes that highlight after the implementation of an ERP:

Puts the company in a first level of management, as the ERP not only allows you to develop your strategic process, but also facilitates the implementation of any management system and control of their business processes in a structured way
“The ideas of control and improvement often confused with each other. This is because the quality control and quality improvement are inseparable.” Kaoru Ishikawa

2. Allows an orderly and sustained growth over time. Improved monitoring and management control through the ERP, it makes it a technological tool to achieve sustained business growth

“” If you do not run your business, you will run out of your business. “B. C. Forbes.

Then if the ERP system produces these beneficial effects in the management of organizations, because many of them are still considering the adoption of this tool? The answer has to do with several factors, among which feature the resistance to change in organizations. Therefore, the key to the successful implementation of an ERP is not so related to the software (although this can become a catalyst or destabilizing change) and with people (and in the proper management of the change process originating in the organization).

“” You can not run businesses XXI century structures twentieth century and nineteenth century managers. “John Kotter

The ERP or as improving the management of the company with a single tool

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