Enterprise Resource Planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, etc. ERP systems automate this activity with an integrated computer-based application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
ERP software drives productivity by leveraging an integrated framework making it possible to “do more with less, be more deliberate with IT budgets, and demand a higher ROI”. Investment in software isn’t always an easy undertaking during a turbulent economy, but if you step back and look at the big picture, it’s an essential move if you want to come out of the downturn ahead of the competition. A study by the McGraw-Hill Laboratory shows that “companies who continued strategic spending during a recession outperformed non-spenders and experienced revenue growth of 275 percent during the first full year of recovery.” For example, in the Order Central implementation of the Dynamics ERP for the Microsoft Business Solutions division of Microsoft – the ERP implementation was able to help drive cost savings of U.S. $2 million a year in reduced IT support requirements and U.S.$1.5 million in reduced staffing requirements. That is approximately $3.5 million of savings a year! No small change even for a giant like Microsoft.
So how did these savings come into play? There is no single magic bullet. It is a combination of reduction of many manual processes that lead to higher productivity. For example at Microsoft Business Solutions a report that used to take 2 person days of effort is now produced automatically by the system in minutes. Deb Remboldt, Accounting Services Manager at MBS validates this. According to her, "All our worldwide partners now have online access to their statements and invoices. Through this online functionality, they can advise our credit and collections team on what invoices they are paying and which credit notes to allocate online. This functionality has already streamlined this process significantly and simplifies this interaction.”
ERP Advantages ?
The fundamental benefit of ERP is that by integrating the myriad processes by which businesses operate, it saves time and expense. Decisions can be quicker and with fewer errors. Data is visible across the organization. Tasks that benefit from this integration include:
* Sales forecasting, which allows inventory optimization
* Order tracking, from acceptance through fulfillment
* Revenue tracking, from invoice through cash receipt
* Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)
ERP systems centralize data. Benefits of this include:
* No synchronizing changes between multiple systems - consolidation of finance, marketing and sales, human resource, and manufacturing applications
* Enables standard product naming/coding.
* Provides comprehensive view of the enterprise (no "islands of information"). Makes real–time information available to management anywhere, anytime to make proper decisions.
* Protects sensitive data by consolidating multiple security systems into a single structure.
Why learn ERP ?
Enterprise resource planning holds a promising future in terms of employment. The professionals are second to none in terms of demand. Many Thanks to the intuition of companies that have made them realize the importance of ERP. The researches conducted by the leading IT consultants have also drawn positive conclusions. They point a vibrant and an ever expanding growth for ERP given the increasing tendency of companies to mechanize and automate enterprise operations. ERP has been the preferred and still continues to be favourite choices among other applications like Customer relationship management.
ERP job opportunities
ERP vendors: ERP professionals have lots of opportunities to seek employment from ERP vendors. ERP vendors will be requiring their services right from implementing, deploying and making pre consultation services and so on. Formerly ERP vendors were hiring them only on service basis. This scenario has undergone a change because the vendors are reluctant to shift manpower team for reasons like convenience and maintaining the confidentiality of business secrets.
Corporate giants: However ERP professionals have enormous opportunities in corporations that invest huge money in ERP. Those companies require the service of ERP professionals in order to strengthen the in-house IT team. By and large many of them have been observed in companies in the aftermath because companies unconditionally realize the need for their continual service for an indefinite period during the time of implementation.
Functional Consultant: Persons with prior experience in diverse backgrounds will be preferred for this job. There is no stigma on the qualification aspect. Candidates from all streams will be considered. However technical knowledge will be a prerequisite. In additions an all-rounder will be preferred for this type of ERP job.
ERP training: This is another lucrative market considering the demand for ERP professionals and the average salary drawn by them all over the globe, of late ERP training has by itself become a very large industry and has been expanding into a fast growing segment. Leading companies like Oracle, S.A.P. and Microsoft offer lots of training programs in collaboration with reputed institutes. They offer certifications that are well recognized in the international market and MNC'S. Leading business institutes conduct special programs on ERP. ERP is also becoming a favorite research topic for management students (from business angle). In fact ERP is being introduced into management curriculum with its intervention in supply chain and warehousing segments. ERP training is offered by the companies in institutes or in companies or both depending on the policies of the company and the requirements in the market.
ERP software drives productivity by leveraging an integrated framework making it possible to “do more with less, be more deliberate with IT budgets, and demand a higher ROI”. Investment in software isn’t always an easy undertaking during a turbulent economy, but if you step back and look at the big picture, it’s an essential move if you want to come out of the downturn ahead of the competition. A study by the McGraw-Hill Laboratory shows that “companies who continued strategic spending during a recession outperformed non-spenders and experienced revenue growth of 275 percent during the first full year of recovery.” For example, in the Order Central implementation of the Dynamics ERP for the Microsoft Business Solutions division of Microsoft – the ERP implementation was able to help drive cost savings of U.S. $2 million a year in reduced IT support requirements and U.S.$1.5 million in reduced staffing requirements. That is approximately $3.5 million of savings a year! No small change even for a giant like Microsoft.
So how did these savings come into play? There is no single magic bullet. It is a combination of reduction of many manual processes that lead to higher productivity. For example at Microsoft Business Solutions a report that used to take 2 person days of effort is now produced automatically by the system in minutes. Deb Remboldt, Accounting Services Manager at MBS validates this. According to her, "All our worldwide partners now have online access to their statements and invoices. Through this online functionality, they can advise our credit and collections team on what invoices they are paying and which credit notes to allocate online. This functionality has already streamlined this process significantly and simplifies this interaction.”
ERP Advantages ?
The fundamental benefit of ERP is that by integrating the myriad processes by which businesses operate, it saves time and expense. Decisions can be quicker and with fewer errors. Data is visible across the organization. Tasks that benefit from this integration include:
* Sales forecasting, which allows inventory optimization
* Order tracking, from acceptance through fulfillment
* Revenue tracking, from invoice through cash receipt
* Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)
ERP systems centralize data. Benefits of this include:
* No synchronizing changes between multiple systems - consolidation of finance, marketing and sales, human resource, and manufacturing applications
* Enables standard product naming/coding.
* Provides comprehensive view of the enterprise (no "islands of information"). Makes real–time information available to management anywhere, anytime to make proper decisions.
* Protects sensitive data by consolidating multiple security systems into a single structure.
Why learn ERP ?
Enterprise resource planning holds a promising future in terms of employment. The professionals are second to none in terms of demand. Many Thanks to the intuition of companies that have made them realize the importance of ERP. The researches conducted by the leading IT consultants have also drawn positive conclusions. They point a vibrant and an ever expanding growth for ERP given the increasing tendency of companies to mechanize and automate enterprise operations. ERP has been the preferred and still continues to be favourite choices among other applications like Customer relationship management.
ERP job opportunities
ERP vendors: ERP professionals have lots of opportunities to seek employment from ERP vendors. ERP vendors will be requiring their services right from implementing, deploying and making pre consultation services and so on. Formerly ERP vendors were hiring them only on service basis. This scenario has undergone a change because the vendors are reluctant to shift manpower team for reasons like convenience and maintaining the confidentiality of business secrets.
Corporate giants: However ERP professionals have enormous opportunities in corporations that invest huge money in ERP. Those companies require the service of ERP professionals in order to strengthen the in-house IT team. By and large many of them have been observed in companies in the aftermath because companies unconditionally realize the need for their continual service for an indefinite period during the time of implementation.
Functional Consultant: Persons with prior experience in diverse backgrounds will be preferred for this job. There is no stigma on the qualification aspect. Candidates from all streams will be considered. However technical knowledge will be a prerequisite. In additions an all-rounder will be preferred for this type of ERP job.
ERP training: This is another lucrative market considering the demand for ERP professionals and the average salary drawn by them all over the globe, of late ERP training has by itself become a very large industry and has been expanding into a fast growing segment. Leading companies like Oracle, S.A.P. and Microsoft offer lots of training programs in collaboration with reputed institutes. They offer certifications that are well recognized in the international market and MNC'S. Leading business institutes conduct special programs on ERP. ERP is also becoming a favorite research topic for management students (from business angle). In fact ERP is being introduced into management curriculum with its intervention in supply chain and warehousing segments. ERP training is offered by the companies in institutes or in companies or both depending on the policies of the company and the requirements in the market.
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