Top 10 Frequently Asked ERP Questions
ERP Questions - What is ERP?
ERP stands for enterprise-resource planning. It is typically based on a centralized database. All employees access data from that one single centralized database through their computer. ERP software transcends boundaries within the organization because all units use the same integrated system. The ERP application system might even include suppliers, customers, and investors.
ERP Questions - Why should I use an ERP application?
ERP applications yield cost savings assuming that the business process reengineering was done properly. Cost savings are typically both quantitative and qualitative.
ERP Questions - How does ERP lead to cost savings?
Business process reengineering results in streamlining of business processes which in turn leads to increased organizational efficiency and effectiveness. Cost savings also result because data need only be keyed in once. This increases data accuracy and reduces mistakes. Qualitative cost savings are increased customer satisfaction and employee satisfaction, for example.
ERP Questions - Do I need an IT department to implement an ERP application?
No. Vendors such as ERP Solutions help you with the planning phase, the actual implementation, the ERP application maintenance, and employee training. You can outsource all IT services. All you have to do is provide the relevant information.
ERP Questions - How much does an ERP application cost?
The actual cost varies. Most businesses and industries can choose packaged solutions these days. Packaged solutions range from a few hundred dollars to hundred thousands of dollars depending on the size of your business and the features you need.
ERP Questions - Do I have to replace all existing hardware and software?
It depends. Vendors such as ERP Solutions may be able to integrate some of the existing hardware and software.
ERP Questions - How do I select the application that is right for me?
You can use a vendor such as ERP Solutions to assist you with that decision. It will assess your particular situation through interviews and possible on-site visits. In cooperation with you and your employees, the vendor can choose the application that is right for you.
ERP Questions - Can I focus on one business aspect at a time?
es and no. Yes, because ERP applications are modular and you can always add a module to an existing system. No, because ERP applications are integrated systems and focusing on one business aspect at a time does not allow for maximum business process reengineering. Remember, business process reengineering is necessary for substantial cost savings.
ERP Questions - Do I have to plan for upgrades?
Yes. At least every few years you need to upgrade your ERP application. Only in this way can the ERP application yield maximum cost savings, continue to conform to best industry practices, and be in compliance with current regulations.
ERP Questions - Who trains my employees?
Vendors such as ERP Solutions provide employee training at any time.
We hope you find the 10 most frequently asked questions about ERP useful. Please fill in the form to the right. You will receive free information concerning any remaining ERP questions.
