At this point, hearing the words, ERP implementation methodology can already make people feel like they are staring into a blank space. Each website that you find seems to have their very own definition of ERP, making it more confusing. This is because they have their way implementing ERP and they are explaining it the way they see it. So by gathering all that you have learned about ERP from these websites, you get to learn something in common from them.
Those running a business or two should learn about ERP implementation methodology and should learn from it. ERP is a short term meaning Enterprise Resource Planning. It is a software that integrates all the functions in the business into a single system. It will streamline the processes and information throughout the whole organization.
The main feature of the ERP implementation methodology is that it has one shared database wherein it supports multiple functions utilized by various business units. According to practice, it means the employees that come from different divisions can rely on similar information but for their purpose or needs. The software also provides some level of synchronized automation and reporting. Rather than forcing the employees to keep spreadsheets and databases separately and manually merging them to generate reports, there are a couple of ERP solutions that allow the staff to pull out reports from a single system. For example, sales orders get into the financial system without the need for manual re-keying. The department of order management can process the orders quickly and more accurately, while the finance department can close books faster. Other features of ERP include a dashboard or portal that will enable the employees to understand quickly about the performance of the business in key metrics.
How ERP came about
The ERP implementation methodology may sound something recent, like around five or so years ago. However, this was coined by Gartner back in 1990, yet its roots date back in the sixties. Its concept was first applied in the management and control of inventory in the manufacturing department. At that point, the software engineers developed programs that monitor the inventory and at the same time reconcile the balances and make a report on the status. By the 70s, it evolved into MRP or Material Requirements Planning systems used for scheduling the production processes.
Ten years later, MRP evolved by encompassing more of the manufacturing process, thus calling it MRP-II. By the 90s, the ERP systems expanded beyond the inventory management and control onto other operational processes such as the human resources and account. This has become the stage for the development of ERP that everyone knows about today.
Pemeco provided the service of ERP implementation methodology and continued to improve their systems based on client feedback. All ERP systems have expanded and touched the Business Intelligence and at the same time handling the functions at the front office like the SFA or sales force automation, ecommerce and marketing automation.