The firm usually does selection of the hardware. But the ERP vendor generally recommends the specific hardware to run the ERP system. Normally the small to mid-size company uses the microcomputer and the LAN. There is a little additional investment is required for the firm, who are already running with the micro-based ERP system built on de facto ERP standards. Thought the hardware is important the most important part is the ERP software. The companies use the enterprise resource planning as the core software to coordinate the whole business process. It helps to manage the company-wide business process and as a managing reporting tool using the common database. The output that comes from a firm is by one or more input activities, which adds the value to the customer. The ERP plays an important tool in the industry since it interconnect the different function of the organization such as manufacturing, accounting, staffing, marketing, sales etc.
Technology was taken as the most important perspective. The tavistock researchers have argued that the work was not just a technical arrangement. It carried its importance in social and individual meaning and such thing has to be addressed in the new working arrangement. The new technology was unlikely to be successful because it intruded in the already existing social and technical arrangement. The focus on the management science is the fact that technology was seen as a variable. This was underplayed by the human agencies, notably one of power and the politics in the organization.
In the early of 1990's team from Massachusetts Institute of Technology conducted a research. They said that if the corporation of 90's wants to gain the full benefit of the advance in the information technology they have to consider large number of the factors. They used the frame model to display these factors. The socio-technical model can be seen in the three dimension of the MIT model. They are technology, roles and responsibilities and structure. The one important consideration is that to align the strategy with the other three elements. The main consideration of the Tavistock team was optimizing the use of the strategy. In organization perspective this cannot be taken as give but need to incorporate in the process of choice and changes.
The data plays an important role for the operation of the ERP. The ERP serves with in demand management, master scheduling and scheduling and planning management from the data collected. The data required for ERP is classified into two types they are forgiving and unforgiving. The forgiving data need not to be accurate until four decimals and it is less precise. The data is used to find the leading time, forecast, demonstration capacities, order quantities, standards and safety stock. The more accurate result is given by the unforgiving data. This includes the inventory balance, production order, routing, bills of material, allocation, and purchase order. If the unforgiving data is not accurate it will affect the company with out mercy. Large amount of time, energy and money is required for the firm to get the unforgiving data to be accurate.
The cloth retailer gained a competitive advantage while they are using the ERP software package. The flow of information and data helps to different sector improves their standards. For example in the product the SWOT analysis plays a big role. The flow of data to the system, which helps to analyze the strength, weakness, opportunity and thread easier. It also helps to make the testing more easily by comparing the tested sample with the standards and the pricing can also be done by making the analysis of the data. The correct data is required for the ideation, trend analysis, and collaborations with the partners in the supply chain and procurement. This involves working with the manufacturer to accomplish the strategic plan. This helps to optimize the cost, quality and speed variables according to the business need, business plan and market demand pattern.
The helm of trouble was no way differ when compare to the manufacturing unit. In the unit the different department in that will not effectively communicate with the other department. Now the ERP solves the problem. The warehouse people will not know how much the stock is required for the process and the critical stock. It also difficult to find such things and time consuming. If we compare it with the retailers they can find the stock by having the sales in hand. Here the ERP plays a vital role in finding the data in an accurate manner. As in the cloth retailing it stores the data in a common database that helps every one in the organization to access the information. This data is used to make the arrangement for the raw material. If there is a change in the quantity the supply for the raw material through the logistic has to be changed.
ERP not only plays a major role in number of sector such as retailing, manufacturing but it also has gained its value in the software industry. This can be said that software companies runs in stipulation of time and tough assignment. Most of the software companies pay the penalty for not completing the project in time. The other problem is that there must be a great co-ordination from the top management to the programmer. The implementation of the ERP solves this problem and added more value to the company. It gives more benefit than the apt software supplied by the ERP vendor. The ERP helped to decrease the huge money used for the training of the newly recruited people. ERP itself tells the people regarding the basics issues in programming.
The most important impact in the retailers is that the managers do not get the required information for the future decision-making. It is also not easy to find the information in the retailer shop. The ERP act as an intermediate and solves the issue of the lack of the information flow form the process to the managers. This makes the managers to make the most précised decision for there orders, inventory and merchandising plans. Better the utilization of the key issue; better the resources will be used.
The value cloth retailers are mostly concern with the fashion and the money. The fashion can be said as an unpredictable world. The product in the fashion element is mostly short lived. There has to be a good turnover to update the fashion. The major key issue in the fashion is short life cycle, high volatility, less predictability. The short life cycle in the fashion can be explained, as the fashion tends to change continuously. They are depending on the mode of the movement. The volatility is largely impacted by the trend, media and due to some of the climatically change. They act as a driving force for the purchase of the particular fashion cloths. It is also difficult to predict the future because to find that there has to be an eye on, what is going in the society. To solve these problems there has to be a collection of large number data. Co-ordination is definitely required for producing the valuable cloths. The particular period of data is need for particular analysis. The next step is to reduce the cost for making the particular product. Integrating the whole process can marginally reduce these elements, because this requires more time and resource to passing the information to the next department. The record of the data about the money spent in each process is necessary i.e. we can easily analyze if the process has to given importance or not. The problem that may arise in the organization may be if this information is available to every one the competitor may easily know the money spent in the particular source.
(ERP TOP 2 SUPPLIERS )KEY-MOSTLY MATCHES FOR MID SIZE COMPANY
- Kholeif, A., Abdel-Kader, M and Sherer, M. (2008). Enterprise Resource Planning - Implementation and Management Accounting Change in a Transitional Country. New York: Palgrave Macmillan