Friday, 21 December 2012

What is ERP?


Many people who still new to the world of IT doesn't know what is ERP. ERP(Enterprise Resources Planning) are systems that integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders(Wikipedia).

Many Open Sources Software is support ERP nowadays. If it implemented well, the company will certainly benefit, effectiveness, and efficiency. So why many company still afraid to implemented ERP?



From The Robbins-Gioia Survey (2001)
232 survey respondents spanning multiple industries including government, Information Technology, communications, financial, utilities, and healthcare. A total of 36 % of the companies surveyed had, or were in the process of, implementing an ERP system.

Survey's results :

  • 51 % viewed their ERP implementation as unsuccessful 
  • 46 % of the participants noted that while their organization had an ERP system in place, or was implementing a system, they did not feel their organization understood how to use the system to improve the way they conduct business.
  • 56 % of survey respondents noted their organization has a program management office (PMO) in place, and of these respondents, only 36 % felt their ERP implementation was unsuccessful 

Comments on the Robins-Gioia Survey :

Project failure is not defined by objective criteria but by the perception of the respondents. The advantage of a perception is that it naturally integrates multiple aspects. Its obvious disadvantage is that it is inevitably partial: if the respondent has taken an active role in the project it will inevitably embellish the reality, whereas if the project has been "forced down his throat" he might cast a grimmer look at the project outcome.

Company / organization that implement ERP properly, would feel the advantages from it. The ERP's project outcome its hard to calculate. So sometimes many organization can't feel the advantages of it.

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