ERP best practices are guidelines that dictate the ERP process, including the implementation of technology, customization of modules, and employee training. These practices can lead to standard processes that give companies a competitive advantage.
An enterprise resource planning (ERP) system is a large integrated computer system that a company will implement to facilitate business operations. ERP best practices are the specific rules or guidelines, both formal and informal, that business owners and executives will allow to dictate the ERP process. Companies can define their organization’s best practices in the corporate mission statement or corporate governance. These practices are considered consistently better than others and have much better results when applied to the tasks and activities of the company.
While larger companies are often the primary users of ERP systems, the declining cost of enterprise technology allows companies of all sizes to benefit from this system. Among the most common ERP best practices is the implementation of technology into all aspects of a business. Technology allows companies to gather data and information from internal and external sources, which enables better information owners and managers to make business decisions. Companies need not fear technology, as it often allows them to create more effective and efficient business processes.
Implementing ERP can be a bit of a difficult process, depending on a company’s size and scope of operations. ERP best practices start by creating an implementation plan to place technology components into all aspects of the business. Since an ERP system will very often replace an older computer system or application, a changeover can certainly make it difficult to continue operations without causing major disruptions. Companies can use a change management team to carry out this process. This team will focus solely on implementation and then work on improving operations once installed.
ERP systems offer companies the ability to customize individual modules or applications of the software package. Modules may include Shipping, Purchasing, Accounting and Finance, Information Technology, Sales and Marketing, among others. Instead of using the standard cookie cutter ERP version, companies should customize the system as much as possible. Personalization allows companies to develop a competitive advantage through enterprise technology. In essence, using ERP best practices can lead to the development of standard operations or processes that competitors cannot easily replicate, even if the company uses a standard ERP system.
Employee training is another aspect of ERP best practices. While it may be hard to believe, there are people in the corporate environment who do not or cannot manage business technology elements. Business owners and managers should take the time to train employees on how to use the system in order to maximize the benefits it brings to the business. Employee training will also lead to more skilled workers within the company, increasing the company’s competitive advantage.
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