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ERP Definition
Another manager in my business asked me to define ERP today and I didn’t really have a good answer for him. How would you guys define ERP and what does it encompass?
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2 Answers
Hi Patrick,
The key word is Enterprise - software systems that can potentially address most, if not all, of the critical processes and functional areas in a company. This varies, based on whether you are in manufacturing, distribution, services, or other kinds of industry. But anything that can be considered and ERP solution, has to address the breadth of the organization. Most customers do not implement all that functionality, certainly not in the beginning. However, they grow into it, and the integrated nature of ERP systems, by definition, brings value to whatever sub-set of applications you do implement,
Unfortunately, what I call TRADITIONAL ERP is often nothing more than an EVERYTHING REPLACEMENT PROJECT. Enterprises of all sizes decide it's time to tear out their core systems and replace them with something that they believe -- or have been told by their reseller or vendor -- will make them faster, better or more efficient. Unfortunately, the results are often disappointing.
I have developed what I call THE NEW ERP -- ENHANCED READINESS for PROFIT, which is what companies doing TRADITIONAL ERP are really looking for but all too frequently cannot find.
I'm doing a series on THE NEW ERP now at http://geewhiz2roi.blogspot.com . Drop by to see if it makes any sense to you.
Thanks.
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