Erp Planning

http://www.microsoft.com/dynamics/businessneeds/erp_investment_drivers.mspx

This article mentions the growing business need of an Enterprise Resource Planning (ERP) investment. ERP systems integrate all data and processes of an organization into a unified system. These systems use multiple components of computer software and hardware to work towards this unity. Over the past years, pressures have changed the speed in which a company must work. To maintain growth, a company must have a system that can speed their innovation, customer response, and allow for effective decision making. The four drivers that need to be considered when choosing an ERP are productivity, connectivity, business insight, and total cost of ownership. Productivity includes getting the most from employee assets. ERP programs can reduce overhead costs by reducing employee redundancy and also make current employee tasks more automated. Current ERP programs can manage product development, financial management, the supply chain, and human resources. Connectivity is about reaching your customer and suppliers effectively. ERP systems can integrate better data sharing betweens all parties involved. When two firms utilize ERP systems, orders can be quick and far less painful. ERP connectivity reduces transaction costs providing an easier way to do business. Business insight deals with improving decision making. If a system is hard to access or not up to date, issues are not found soon enough to be dealt with correctly. ERP systems can provide vital intelligence such as customer loyalty, sale profitability, employee and manufacturing performance, as well as distribution. Total cost of ownership is making the most of a company’s IT. Moving data around is costly and error prone. Dated systems add to the struggle with wasted money hiring IT to solve data issues. ERP systems can save a company from spending too much on IT. In conclusion, companies that do not develop an ERP strategy are at a disadvantage. ERP can put a firm on the fast track to being global and profitable.