ERP Software - The Types Available And Their Advantages And DisadvantagesEnterprise Resource Planning or ERP is used to refer to integrated information systems that simplify the multi functional tasks of an organization. There are ERP software solutions which have multiple modules for varied business applications. By integrating the various processes and sub processes into a unified system, it acts as a comprehensive package to achieve the objectives of a company. By storing the entire information and relevant data in a centralized database, it provides easy accessibility to the same. The prime advantage of implementing ERP solutions is that they help in the optimum utilization of the available resources in the least possible time period. Proper coordination among the different departments and processes helps in streamlining the activities of an organization throughout the supply chain. Apart from comprehensive packages, there are different types of ERP solutions available for different segments like manufacturing, distribution, and financial. In the present day competitive market economy, ERP systems play an important role in the success of an organization. Therefore the decision regarding the selection and implementation of these systems is very crucial. It is imperative to select the appropriate software keeping in mind the important processes of an organization. The cost factor also needs to be considered since the implementation of these software systems can be an expensive affair. There are numerous vendors providing ERP software solutions for different types of industries. Some of the important names in this field are SAP, JD Edwards & company, Oracle Corporation, Baan International, Microsoft, and SYSPRO, among others. SAP is clearly the leader in ERP software solutions, with largest market share. These software solutions cater to specific needs of organizations and therefore must be carefully selected. Implementing these software solutions is not very simple and requires proper training of the personnel. To equip the staff with the IT knowledge required to implement these software systems can prove to be expensive for the company. Inadequate knowledge of these software solutions can lead to underutilization of its potential. Also, purchasing or subscribing to the software costs a lot of money. Apart from this, the failure of the system to adapt to the workflow process can prove to be disadvantageous for the company. In spite of the above mentioned drawbacks, ERP systems provide multi functional solutions to different departments like inventory, human resource, recruitment, distribution, sales, marketing, accounting, etc. Since all the data relating to different processes is centralized in one computer system, it becomes very easy to forecast and plan the necessary adjustments. With popularization of e-commerce, ERP software solutions have become more relevant. Since it provides updated information and a centralized database, it becomes very easy for the management to take strategic decisions. This enhances interdepartmental coordination, making the business efficient and cost effective. |