In actuality, independent ERP systems are installed in each unit, while linking common processes, such as financial bookkeeping, across the enterprise (Wailgum, 2011). Therefore, the organization introducing the ERP system should come prepared to install the system in each unit. This means that each unit should have both hardware and software as well as the personnel able to use the ERP system, to understand its functions and role.
Furthermore, the business units each have their own “instances”ť of ERP””that is, a separate system and database. The systems link together only to share the information necessary for the corporation to get a performance big picture across all the business units (business unit revenues, for example), or for processes that don’t vary much from business unit to business unit (Wailgum, 2011). In such a way, the ERP system can reach the high degree of autonomy of each unit. On the other hand, they can cooperate effectively and interact with each other transmitting information throughout the organization.
At the same time, specialists (Wailgum, 2011) argue that these implementations begin with a demonstration or pilot installation in a particularly open-minded and patient business unit where the core business of the corporation will not be disrupted if something goes wrong. Once the project team gets the system up and running and works out all the bugs, the team begins selling other units on ERP, using the first implementation as a kind of in-house customer reference (Wailgum, 2011). In fact, the aforementioned model of the implementation of the ERP model is very popular today because it is relatively simple to use and reliable. On the other hand, it is worth mentioning the fact that it is large organizations mainly that use this model of the implementation of the ERP system.
At the same time, the implementation of the ERP system is not enough for its effective functioning and operations. Instead, the integration of the ERP into the organizational structure and internal business processes is needed. In this regard, specialists (Ward, 2006) argue that integrated data require standardized processes. ERP systems impose business processes that require discipline and consistency (Ward, 2006). Organizations should match needs and requirements of each unit and business process to integrate them closely and to use the ERP as a vehicle that helps to tie together all business units and internal business processes within the organization.
Furthermore, it is worth mentioning the fact that the ERP may be applied in different industries. In this regard, each sphere of the implementation of the ERP system may have its own specificities. For instance, in manufacturing, ERP makes each operational business area more accountable for results, reducing the production cycle time and improving customer wait time (Ward, 2006). In such a way, the high degree of integration of the ERP system can be reached.
Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the development of the ERP system is very important for modern organizations. The ERP system facilitates the interaction between units of the organization and increases the effectiveness of internal business processes. On the other hand, the ERP system needs the elaboration of the plan of its integration and its effective introduction in the contemporary business environment.
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Behzad, R. (2003). Principles of Data Conversion System Design. New York: Random House.
Vilpola, I. (2008). “Development and Evaluation of a Customer-centered ERP Implementation Method.”ť Journal of Information Technology Theory and Application, 9(4), 1-7.
Wailgum, T. (2011). ERP: Definitions and Solutions.
Ward, C.J. (2006). “ERP: Integrating and Extending the Enterprise Senior Leadership Examines the Benefits and Challenges of Enterprise Resource Planning.”ť The Public Manager, 35(1), 30-39.