ERP (Enterprise Resource Planning) has been around since the mid-1990s. As an industry acronym, ERP stands for enterprise resource planning. It was designed to replace the then obsolete manual system that was once the industry standard. ERP also represents the future of software design.
The main difference between traditional ERP software and ERP independent consultants is that traditional ERP software packages are typically modular, while ERP independent consultants are prescriptive. An ERP software package is basically a coherent set of modules that can be mixed, for instance, to do a myriad of tasks. learn more about the function of ERP at http://www.tactiphone.com/what-is-an-erp-and-what-are-its-functions/
Connected IT Consulting, on the other hand, is free to choose how to organize the modules within the package, often following the format of traditional ERP software. When ERP consultants implement an ERP system, it represents an investment in resources they would not otherwise use.
ERP Implementation Approches
There are two approaches to ERP implementation:
- ERP as a stand-alone ERP solution and
- ERP as an integrated solution.
In an ERP solution, ERP software modules are installed into an ERP system and the entire enterprise network is mapped with the ERP modules. This configuration exposes the data to those who need it in real-time.
In an ERP integrated solution, all of the components of the ERP system are installed in one Enterprise Resource Planning (ERP) application that integrates all internal business processes and then allows information to flow between the ERP modules and external business processes.
Traditional ERP systems
It typically made up of five logical layers. These layers include:
- Business processes
- Financial processes and
- Customer relationships.
While this represents the core architecture of an ERP system, the logical layers only represent a portion of the total system. For example, ERP software can integrate with accounting systems and these can be built into the ERP solution using vendors such as QuickBooks and NetERP.
Some ERP vendors like Connected IT Consultants go so far as to build their own accounting systems from the ground up using internally developed software and incorporating them into the ERP solution.
Traditional ERP implementation is usually done in phases. During the planning phase, a strategy for success is formulated. This involves determining which processes need to be upgraded or downgraded and how many employees need to be added to the ERP project. After this has been determined, a budget is put into place.
Once the planning phase is complete, it is time to start the implementation. When implementing an ERP, there is a need for a change management process.
ERP implementation can turn out to be quite a nightmare for those who have no experience in this area. The worst thing that can happen is things take longer than expected and a lot more money is wasted than planned. To make things go smoothly, the change management team needs to be involved in all of the decision-making.
Using an ERP methodology calls for the incorporation of core attributes from legacy ERP systems. These are designed to work well with existing ERP implementations but are not critical in and of themselves. They are designed to enhance functionality and provide a solidification layer on top of the ERP system.
This functionality allows a business to leverage the value and versatility of the ERP application. Many ERP software vendors provide support for legacy ERP systems but may not provide full functionality in some areas.
Traditional ERP solutions are normally designed to support two environments – on-premise and off-premise. Large businesses may use on-premise ERP solutions while smaller businesses will most likely use off-premise solutions.
It’s common to see many companies using a hybrid ERP architecture that brings functionality from both on-premise and off-premise solutions in a single, integrated, enterprise resource planning (ERP) system.
In fact, there are quite a few ERP vendors that are leveraging multi-vendor and multi-platform software designs to deliver enterprise-wide ERP solutions. However, ERP technology has evolved enough to where it is now possible to run legacy systems in on-premise form too.