Benefits Of Erp Implementation In Industries

Published Date: 02 Nov 2017

The basic aim of this paper is to introduce Benefits of "Enterprise Resource planning (ERP) implementation in industries" .ERP implementation in different types of industries has many benefits as it improves the industrial efficiency and Business Objectives. The ERP implementation is used to create a proper and perfect environment of work in an industry. The objective of ERP implementation alleviates the flow of information. This paper will be helpful to understand the Benefits of ERP implementation in industries and as my master thesis it will help me to know the changes which I can contribute focusing in different industries and how I can improve it keeping in mind of the benefits.

Introduction

The industries which use ERP are commonly focused on improving their business performances and to make profits. The industries are customized according to levels are small , mid-sized and large Industries which implements ERP system to enhance their style of working which makes their internal business functions more compatible and more faster to achieve maximum efficiency in an industry. ERP implementation plays an important role in every industry which acquires it. It is not limited to only one type and level of industry but associated with different types of industries varying from small scale to large scale industries.

This paper initiates with the Different ERP implementation Products which are designed specifically for implementation in small, mid-sized and large industries. Further, it is discussed which kind of Industries prefers ERP implementation and Benefits for my Future Career. Finally, the Benefits of ERP implementation in industries is discussed which includes Profitable Design Process, Order Tracking Process, Calculating Large Costs, Access data with Data Integrity, Delivery Time Reduction and Quality of Services and Gain Higher Profits followed by conclusion.

ERP OVERVIEW AND INDUSTRIES IMPLEMENTING DIFFERENT ERP PRODUCTS

What is ERP?

ERP systems are those kind of systems which industries uses to correlate some kind of Information in every business areas. The feature of Common Database and Shared Management Reporting Tools increases the efficiency of an industry to manage wide business processes. (Monk, Wagner 2009, p. 1)

ERP Products used by different Level of industries

The ERP industry comprises of several companies which produces business systems software. These software’s basically deals with improving business processes and making them more efficient in different areas and level of industries. (Svante Anderson, p. 183). The software description is as follows:-

SAP R/3 and B1

SAP is known as the best ERP tool for implementation in industries. It provides two solutions. It is commonly known as R/3 Suite and B1 suite. B1 stands for "Business one". SAP is the only tool which supports almost everything from very small industries to very large industries. One can customize it according to business needs. B1 targets more over small and midsized business industries and also provides pre-built modules specifically for Warehousing, Finance, e-commerce, Customer Relationship Management (CRM) ,Reporting and Purchasing. (Ma Wen Jie)

JD Edwards EnterpriseOne

It is an Oracle based ERP system. It provides pre-designed modules which focus on standards-based process engineering and profound understanding of various business processes and requirements. (Ma Wen Jie)

LN/Baan

This tool focuses on manufacturing industries which works on very complex products. Industries like The Boeing company, Evenflo, Ferrari, Solectron, fiat , Flextronics, British Aerospace and Engineering Systems and Navistar uses this tool. It can also be customized and upholds flow chart based process and documentation procedure. (Ma Wen Jie)

Microsoft Dynamics NAV and AX 2009

It provides two ERP packages. Microsoft NAV and Microsoft AX 2009.

Microsoft NAV targets small and mid-sized industries.

Microsoft AX 2009 targets mid to large organizations and includes functions which are useful for industries which focus mainly in multiple countries. Individual Productivity improvement for industries is basic aim of this tool. (Ma Wen Jie)

ORACLE E-BUSINESS SUITE FINANCIALS and PEOPLESOFT ENTERPRISE

Oracle E-business suite Financials is a package which mainly targets on Financial Services Industry. It serves distributed organizations and provides modules related to financial and operational information, budgeting, dynamic planning, multidimensional Profit Analysis and Forecating.Whereas, PeopleSoft focuses on complex business requirements and can be highly customized. (Ma Wen Jie)

INDUSTRIES ADOPTING ERP IMPLEMENTATION

The capital-intensive industries like manufacturing, construction, aerospace, and defence has already acquired ERP systems traditionally. Also it is widely used in finance, health care, retail and telecommunication sectors, insurance and hotel chains. (Shehab et al. 2004, p. 359)

The industries which implement the ERP systems are pharmaceutical sectors, automotive, chemical and consumer goods which are categorized in large scale industries. The other sectors like health care, telecom, insurance and banking are categorized in small and mid-sized industries. (Garg, Venkitakrishnan 2004, c2003, p. 12)

Benefits of ERP implementation in industries

Profitable Design Process

When a product is designed, ERP systems are useful for an industry to find the profitable design process. (Exforsys Inc.)

Order Tracking Process

ERP provides Order Tracking process in more efficient manner which is another benefit of ERP implementations. (Exforsys Inc.)

Calculating Large Costs

One of the major benefits of ERP implementation is that lowers and eases the sales planning. It can beneficially calculate the costs and reduces time in making large calculations. (AIDEN SMITH)

Access Data With Data Integrity 

Another Benefit of ERP implementation is making quick decision, which helps industries to obtain marginal profits in a better way. It helps organization to access the data which follows data integrity which in turn confirms the entry of relevant and correct data in an organizational database. (AIDEN SMITH)

Delivery Time Reduction And Quality Of Services.

Another Benefit of ERP implementation in industry is to initiate CRM applications which are also main feature which is nowadays defined as core-objectives of ERP. It reduces delivery time, extends quality of services and increases the performance rate provided by industries. (Dr Easton Patrick Tuesday, 2012, p. 1)

Gain Higher Profits

Also, another core benefit in industries implementing ERP systems is error controlling which encourages coordination of Business Resources and Better planning to gain higher profits. (Dr Easton Patrick Tuesday, 2012)

Benefits for my Future Career

Being an Automobile Engineer, i worked as a software developer in Accenture Services Pvt. Ltd on Siebel CRM (Customer Relationship Management) applications which is an Oracle Product and also on Reporting tools. Also during my training experience in Heavy Earth Movers Maintenance I found the main usage of ERP implementation. ERP is a huge area comprising of many Objectives and Processes. The knowledge of both the fields respectively of Automobile Engineering and Software developing will help me to gain new ideas and to improvise in ERP implementation. From my experience; i can choose my career in Implementation of ERP in Automotive Manufacturing Systems and also in Development and Integration of ERP system when implemented in an industry.

Conclusion

The ERP implementation in industries depends on choosing a proper ERP product according to the type and levels of industries. The benefits of ERP implementation in industries are numerous and that is what actually makes it more beneficial to be used by industries varying from small scale to large scale industries. Adopting an ERP implementation is not that easy because it is costly. But for the continuous development of an industry, it is required. It formulates and makes easy for the industries to focus on Profits, saving time and calculating large costs. As an Automotive Engineer and having experience in software developing, this is the best topic for me to do my master thesis and for my future career.

Publication bibliography

AIDEN SMITH: 5 Major Benefits Of ERP Software System. Available online at http://www.selfgrowth.com/articles/5-major-benefits-of-erp-software-system, checked on 23/04/2013.

Dr Easton Patrick (Tuesday, 2012): Core Objectives of ERP :: ERP Implementation in an Organization. Available online at http://www.fibre2fashion.com/industry-article/39/3890/the-core-objectives-of-erp1.asp, updated on 23/04/2013, checked on 23/04/2013.

Exforsys Inc.: The Advantages and Disadvantages of ERP. Available online at http://www.exforsys.com/tutorials/erp/the-advantages-and-disadvantages-of-erp.html, checked on 23/04/2013.

Garg, V. K.; Venkitakrishnan, N. K. (2004, c2003): Enterprise resource planning. Concepts and practice. 2nd ed. New Delhi: Prentice-Hall of India Private Limited.

Ma Wen Jie: Types of ERP Systems | eHow.com. Available online at http://www.ehow.com/about_5366970_types-erp-systems.html, checked on 22/04/2013.

Monk, Ellen F.; Wagner, Bret J. (2009): Concepts in enterprise resource planning. 3rd ed. Australia, Boston, Mass: Course Technology Cengage Learning.

Shehab, E.M; Sharp, M.W; Supramaniam, L.; Spedding, T.A (2004): Enterprise resource planning: An integrative review. In Business Process Management Journal 10 (4), pp. 359–386, checked on 22/04/2013.

Svante Anderson: Anderson 180.193, checked on 23/04/2013.