ERP System and Main Characteristics of ERP System

Top characteristics of ERP systems include Company wise integration, Real-time or nearly real-time operations, multi task management, integration with other ERP systems, Common database and mainly Consistent look or feel.

we will try to cover for the details of characteristics of ERP systems in this article. Feel free to scroll down to read more

What is ERP System, an Overview

                                                                            The ERP system is a series of abbreviations in English with the following meanings: Enterprise Resource Planning, which can be translated to Enterprise Resource Planner.
We can define these programs as “management applications”, which are responsible for grouping and managing all processes related to the company.

Its main function is to keep all this data in the same location or storage area, so that it can access all the information of the company, and people with the necessary permissions can modify or overwrite it.

Characteristics of ERPAlthough there are many systems for data management, it has different characteristics and built-in processes. When used in a company, its effectiveness is higher than usual. For example, an ERP system includes all the operations that may be necessary for the company’s accounting, such as:

  • Lost.
  • Gain.
  • Shopping Sales.
  • production.
  • Offers.

Main features or characteristics of ERP System

                                                                                                                    All systems in all of these services have a number of features that are comprehensive, modular, and adaptable. These characteristics are essential for the correct functioning of ERP because they are directly related to the objectives of said software.

1- Integrals

During the working day all organizations will eventually exchange more or less information between one area and another. Due to the control of this data, it can eventually cause problems in the implementation of the system. In these cases, the service provided by ERP is perfect because it has comprehensive functions that allow them to control and manage all the processes, for which each specific department of the company is responsible.

Your general task is to avoid any misfortune by sending this information to other departments, to optimize and achieve a more effective information transfer.

2- Modular

Each specific company has the ability to manage its business processes in different ways, or to a lesser extent, with different departments from other companies, therefore, all ERP system services must be modular and adaptable to business. ERP is generally integrated with the necessary tools to solve and satisfy most of the needs of any company, such as: profit, loss, sales, purchases, inventory, etc.

3- Adaptable Characteristics of ERP

All systems have to have the ability to adapt to the different needs of a company. No business is exactly the same as another, for that reason it is normal for the required functions to be different. Today this is no longer a problem because a large part of modern systems have the ability to develop new processes during cooperation with companies, so they can design new tools to continue contributing to these businesses.

The main features of ERP-VQ as a system is that it can be fully customized according to your company’s business model, it is easy to use and the cost of implementation is acceptable (no additional fees for users or equipment licenses). The current trend is to provide specialized applications for each business unit. This is the so-called department version or department application specifically directed or prepared for certain business processes in the department.

The system must have configurable modules according to the role or authority of each user. This means: It is a single program with different groups of users or permissions that can access a centralized database. Characteristics of ERP

Additionally, with the development of network technology in recent years, our system can be accessed from the cloud, that is, you can access and consult data from any place or device connected to the Internet.

4. Complete

The ERP system should be advanced and should be used comprehensively. This means that almost all business functions have to be performed through the ERP system. If we only get a small number of activities through ERP and more will be done manually, then this ERP system is not ok. Its capacity should cover all functions of the company.

5. Online connection with another ERP system

Today, on the market, there are plenty of ERP solutions but which is the best, we will say its functionalities? Check whether it has the ability to connect other ERP system online or not. Because today businesses have started to interact with millions of other businesses. It is therefore necessary to connect them online via our ERP.

6. Best business practices

Every business activity has a lot of standards. For example, accounting follows IFRS, quality management follows ISO 9000, and marketing follows the MASB standard. Thus, your ERP system will be updated according to all standards.

7. Multi-installations

A good ERP system should have multiple facilities. This means that it can operate in multi-currency, multi-mode manufacturing, and multi-platform.

8.Strategic planning

Strategic planning is the main and superior function of the company. This should be done through the ERP. The ERP should integrate all of its subpart systems for better strategic planning.

9. Optimize data

A good ERP system optimizes data for efficient use of limited business resources. It also optimizes data to reduce costs and risks.

10. Project management

A good ERP system allows the team to collaborate in real time to work together on a project. Everything related to the project process can be followed through this.

11. Automatic functions

We can measure the quality of the ERP from its advanced automatic functions. With these automatic functions, the organization saves him a lot of time. This automatic function can be in electronic funds transfer, electronic data exchange and electronic commerce.

Current situation of ERP systems

                                                                     Not long ago, a study was conducted in Western Europe to understand the characteristics of ERP and the system over the years. The fact is that the vast majority of them (about 62%) have a production time of less than 5 years, of which 19% have between 10% and 15%, and the last 7% have more than 15 years .

The fact is that a large part of the pioneering ERP system is completely outdated and useless. This happened due to problems with the software and hardware used in the original model. Even so, ERP still manages to integrate new functions and processes so that they can position themselves in the current era, so that there is progress to improve the quality of their services.

We can point out that Europe is currently the geographical area with the highest influx of ERP systems in the world. Mainly due to the strong increase in the private sector, software is required to help the control and information management functions of companies. Characteristics of ERP

Computer ERP Characteristics of ERP

                              In the field of computer science, ERP is defined as a set of closed computer systems that have the ability to perform specific operations, especially for companies. The characteristics of ERP make it look like a system responsible for carrying out all the logistics and accounting tasks for its users, but depending on the services purchased it can also include more functions.

Characteristics of ERP

ERP providers Characteristics of ERP

                                Currently, there are almost innumerable companies dedicated to creating ERP systems, but the best provider of such services has been positioned in the market for some time, leaving behind most of the competitors. Among the main ERP providers, we can mention:

SAP Characteristics of ERP

           Without a doubt, the world leader in ERP provider companies. Currently, a large part of these systems are created as product sales or, on the other hand, have been acquired by another company, but SAP managed to remain as a provider of “services”.

Microsoft Dynamics Ax Axapta Characteristics of ERP

                                                                    Microsoft has always been interested in starting to compete in almost any market, and they have achieved great success. Its system is known as one of the most complete systems in the world, and is currently among the best ERPs.

Oracle ERP Scope Characteristics of ERP

                                      Oracle is one of the companies that has been successful in various market segments. One of the main advantages of your ERP service is its large number of functions and tools.

Oracle JD Edwards Enterprise One

                                                                           When the same company occupies two positions, you can ensure that the services they provide are of high quality. The Enterprise One version of Oracle will serve as a reduced version of your general service. Characteristics of ERP

Infor LN Characteristics of ERP

                 Finally, we are facing one of the oldest companies dedicated to ERP services. In the years that followed, Infor LN was able to maintain its leadership position even as new companies arrived.

Objectives of an ERP system

                                                                   Today’s ERP must have a series of standards to meet to show the image of a safe, accurate and timely service to its consumers. Among the objectives to be achieved by the ERP system, we can mention:

1- Optimize business processes

                                                            The idea behind ERP operations is to reduce the burden on companies using its services. For these reasons it is essential that ERP can optimize the processes and daily activities of the company.

2- Share information between all components of the organization Characteristics of ERP

                                                                                                                                   In general, the services provided by ERP must be provided to the entire company, so the information processed by the system must be able to be transmitted to any component of the organization. However, the person in charge of the company that has contracted ERP has the right to limit the information that the ERP service can distribute.

3- Elimination of unnecessary re-engineering processes Characteristics of ERP

                                                                                                            The main activity that the ERP system performs is dealing with these business engineering processes. Therefore, eliminating such activities will greatly reduce the burden on the business and increase its effectiveness.

The purpose of ERP is to reduce the response time to different situations of interaction with customers, and carry out effective information management, in order to make decisions and reduce operating costs. Characteristics of ERP

Examples and uses of ERP systems by areas and companies

                                                                                                                                    ERP software uses a centralized database to store information from all departments and run integrated software, so everyone can access the information they need, regardless of their assigned business roles.

What makes this system so complicated is that it is used differently at Company X than at Company Y. Each implementation is highly appropriate for business needs, so there are big differences. From one department to another, or from one company to another.

ERP by Area Characteristics of ERP

  • With either, you can choose to constitute any or all of the models listed below as needed. Here are examples of use according to the department that uses this system:
  • Inventory management: The inventory module, also known as materials management, helps measure inventory goals, standardize replenishment, and track materials through serial numbers.
  • Sales and Marketing: These modules manage the sales workflow, from inquiries and quotes to orders and invoicing. With a more advanced implementation, shipments can also be tracked.
  • Manufacturing: Also known as production or engineering, this module is designed to improve manufacturing efficiency. Including product sales planning and forecasting, daily production monitoring, etc. It is integrated with the inventory module.
  • Financial Management: This module manages capital so that you can more clearly understand the funds entering and leaving the company. Covers standard accounting transactions, including fees, balances, tax management, bank reconciliation, etc. You can also generate financial reports for any department.
  • Customer Relationship Management (CRM): To improve customer service and ARPU. Manage leads, events and client meetings. In ERP, he worked closely with the sales module to speed up the conversion.
  • Supply Chain Management (SCM): This module covers the supply chain, including purchase order management, process automation, and production processes until materials reach consumers, and vice versa.
  • Human Resource Management (HR): Employee-oriented, including items such as schedules, employee records, performance appraisal, payroll systems, and job files.
  • Automated reports: This module works in conjunction with other modules to facilitate report preparation in all departments. Employees no longer need to spend time pulling reports from each system.
  • Business Intelligence (BI): Promotes the use of business intelligence to make decisions about the future of the company based on data. Typically, you will only find BI modules in large ERP packages.
  • Project Management: This module links project activities with company funding to facilitate reporting of project success or failure.
  • Compliance monitoring: Check if your company complies with industry regulations. It covers everything related to local regulations, security measures and documentation requirements.
  • IT optimization: This module is used to optimize the IT structure to keep the system running smoothly.
  • Asset Management: Designed to manage assets, manufacturing equipment, and other tangible assets.

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