Btec Business Level 3 Unit 7 Enterprise Resource Planning

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Unit 7 - Enterprise Resource Planning (ERP)
7.1 Introduction
Today, in this competitive business environment, there is a need for better communication between manufacturers and customers, and that forms a requirement for a better interface between them. It basically means that in order to tailor with the needs of a customer, an enterprise should understand the requirements of the customer and be closely linked to the suppliers and customers. The enterprise also needs to provide better delivery performances. In order to achieve that, it is important to decrease lead times within the enterprise, and increase efficiency. The manufacturers need efficient planning and control systems that help in eminent synchronization and planning. A strong integration across the value chain is also necessary.
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The decision to implement an ERP should be based on a business case rational.
 Technology justifications include the need to address the Y2K problem, which in most cases is not applicable and to integrate the different systems’ functions. There is also a need to merge acquisitions with new capabilities such as web accessibility into the business environment.
 Actions are addressed by process improvements which eventually reduce personal and IT costs.
 The need to close the financial cycle and increase the overall production (from an enterprise standpoint) are included under Productivity improvements.
 Strategic considerations to implement new strategies which are not supported by the current software help improve customer service and satisfaction, these things respond to competitive responsiveness.

Follow Software Process or Customize?
 This is the key decision which determines the success or failure of the ERP effort.
 If the organization decides to follow the process of the software, then we can say that the organization is following the best practices within its sector. So, they will have a chance to improve and standardize their

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