Enterprise resource planning (ERP) is kind of like the Internet, it seems to everywhere. Since its inception over 40 years ago, this enterprise software system has traveled a long road to success and has picked up technical contributions from software companies around the world. Global ERP is doing its thing on a localized level in numerous nations and in all industries.
It started with manufacturing, but today this enterprise software runs the gamut, from accounting and financials, sales and marketing, manufacturing, distribution, supply chain management, project management, planning and scheduling, reporting, customer relationship management, and more. It’s a system that has changed the way companies operate and it has made many a business more competitive as a result. Boxed software still has a role to play for some small businesses, but even so many of them have made the transition to ERP.
Many large corporations still require the traditional ERP set up, which calls for on-site installed servers, storage and software. Implementation is a very costly proposition which also requires training of management and staff, to orientate themselves to a new and different way of working. Multi-national businesses need an extensive reach, as there business operations take place around the world. They work in multiple languages and in multiple currencies, and they require more control over their information and data. The ERP system gives them that, along with the security they need to ensure smooth operations. Contacts between China and California are simplified with the enterprise platform because everything is integrated, as well as automated, for swiftly processing business tasks.
To say that ERP has come a long way over the years would certainly be an understatement. When it began years ago as manufacturing resource planning and then materials resource planning – before morphing into enterprise resource planning – it was more or less bits and pieces of software melded together in order to satisfy the need of addressing management of the whole process or, the entire enterprise. Over the years as technology accomplishments grew, a single system was perfected on an integrated platform that could bring all disparate areas of a business together as one. Today, global ERP is well represented everywhere. By integrating applications and automating the system, the need for paper work and paper chases has been diminished.
Perhaps the biggest change to ERP has been the ability to access it online, as is now possible today. This development has had the greatest effect on small businesses which don’t have the means to pay for expensive on-site installment, which can run into hundreds of thousands of dollars. Web-based, Software as a Service, on-demand, has had a significantly powerful impact on small companies and has made many of them much more competitive. These were small firms that had been working with out-of-the-box software for years. Once being liberated by ERP, they found so much more that they could do and as a result, have been very creative in using the software to grow their businesses.
Global ERP is indeed is indeed making its mark around the world.
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