Businesses today are integrating an ERP software for more efficiency and profitability

ERP or Enterprise Resource Planning is a high end software solution that information technology has lent to the business application world. An ERP software seeks to simplify and incorporate processes, operations and information flows in an organization, to synergize the resources such as people, material, money and machine. In other words, the software integrates all data and processes of a business to a unified system. A typical solution uses multiple components of computer software and hardware to be able to achieve integration.

To keep up with the latest technologies and demands, there are changes in the ERP requirements in today's time. The key to the software's success is a well-designed implementation plan. The art of collating the needs for the selection of the software project is not a simple endeavor. As a matter of fact, it could be the most difficult part of the whole process. The following are some few critical points when evaluating a current or future ERP system.

1. Truly Agile. Businesses should adopt systems that effectively support their present requirements but also enable them to remain competitive in the future by allowing to efficiently react timely to every changing business requirements. Analytics and mobility are two of the most vital aspects to validate. Mobile-enabled ERPs allow mobilizing the processes, thus helping to boost productivity and efficiency.
2. Adapt to the system in one's own way. Adaptability is one of the key capacities an ERP should provide to deliver the promise of true agility, particularly for covering most specific requirements that offer a competitive edge. To leverage previous investments, it is also vital to validate how easy it is to incorporate the current systems. Truly modular solutions offer maximum benefits when it comes to ease of upgrade and adaptability.
3. Web-based. Web-native solutions offer a simpler maintenance and deployment approach. It helps to leverage the true cloud benefits. The productivity of the staff is enhanced as the solution could be accessed anytime, anywhere as well as facilitates collaboration with trusted customers or suppliers that can easily access the system.
4. Scalability. Technical and functional scalability is a must for accommodating future requirements and support future organizational growth. Businesses with scalable solutions could focus on developing their businesses rather than fighting to adapt their IT infrastructure and systems.
5. Low IT costs. Information technology departments could help minimize unnecessary expenses through leveraging on modern web-based apps and open source technologies as well. Using open source commercial solutions aside from the clear direct license savings, organizations could gain higher control on their most strategic developments because they own the code. For bigger firms which count with the proper functional and technical skills, an open source solution offers self-sufficiency, since code is available and could be modified easily.
6. Productive and friendly UI. Ease of use has surpassed traditional criteria like fit and functionality for evaluating an ERP solution. A solution that's easy to use and intuitive could help boost end user productivity and satisfaction, lower training costs and finally boost user adoption and lower the chance of system failure.

An Enterprise Resource Planning system enables a business a bigger insight and visibility into the supply chain operations. Access to this vital information enables them to make crucial decisions and maintain a competitive advantage in their field, regardless of how big or small the competition. The system is 360 degrees visibility into operations, thus problems are identified more easily and the staff could make informed decisions. Furthermore, financial data would always be current with the real-time integration between financial, distribution and manufacturing solutions.

ERP's could help an organization become more time efficient and boost productivity through eradicating manual entry and duplication. A not so obvious yet critical benefit for Enterprise Resource Planning customers is that the ERP vendors could maintain close ties to the industries they are serving as well as quickly respond to the emerging customer needs. This provides the clientele a long-term assurance that as the middle market business continues to grow; the systems would also grow with them in response to the needs in the future.

The development of an effective ERP for a business is not to be taken lightly. This is because costs could be high for the systems, even if they are purchased off-the-shelf and with little modification. However, businesses would have to make some changes to accommodate the operation details. When it comes to the development of an ERP software, the following are some things to keep in mind to make sense of the software for the organization.

1. Reengineer business processes. Companies that rush into the implementations of their ERP without more focus on business process reengineering are likely to automate their already ineffective processes. Project managers and CIO's who are more interested in enhancing and transforming their business processes should build the right level of focus and effort in their project plans, otherwise their organizations would naturally revert to the cow paths, despite how hard they may try otherwise.
2. Waterfall versus agile software development. This could sound like a concept that is overly technical that need not concern CIOs or others in the boardroom, but the decision will materially impact the ERP implementation plan and strategy. Traditionally, most consultants and system integrators follow the waterfall approach, which means a more formalized and sequential approach to designing, building and testing. On the other hand, agile development entails a less structured and a more iterative approach in rolling out new functionality. The Waterfall approach typically works for bigger organizations or others looking to standardize business processes, while agile could work better for smaller or nimbler firms that are not as concerned on operations standardization. Most clients prefer the waterfall approach, but many found the agile to work as well Either way, it is necessary to understand the pros and cons, risks as well as the tradeoffs of every approach and decide where on the spectrum the implementation would fall.
3. Standardization versus autonomy. In the project planning phase, it is necessary to determine if and where the organization would standardize business processes across a business. Despite the internal resistance that rears its ugly head typically when the rubber meets the road, most embark on implementing ERP intending to standardize heavily across the company. Wherever the organization may fall on the spectrum, it is necessary to recognize that standardization would need more time up front in business process reengineering and the requirements phase of the project, while firms that lean to a less standardization would need more resources and time during the designing, testing and training stages. This is a major example of where a one-size-fits-all strategy will not work. One has to tailor the corresponding plan and strategy to fit the company priorities and requirements and accordingly build an ERP implementation plan.