Since ancient times, project management - no matter how small or large - is an important attribute of success, and it is important to know that project management is divided into ( management with its sections – accounting), and with the development of time, technology has reached the latest version of project and business planning management, "enterprise or company Resource Planning" Enterprise Resource Planning, and below we will present the most important concepts of the ERP system and their importance.
What is the ERP system
It is one of the accounting management systems that is used to improve the efficiency of all business processes and business management processes in all its departments technology , service , human resources and ERP, and consists of a set of systems working together to organize the operations of the company, organization or company and link them in a unified and integrated way, whatever the nature of the work (Industrial, Commercial ...etc.) can be applied, and also eliminates the use of different systems and software from several companies.
Characteristics of the ERP system
The ERP system helps to raise the efficiency of operations performance to reach the highest quality and lowest cost, increases the speed of response and the ability to achieve goals, it works to collect information from all activities within the organization or company and link them in an easy and accurate way, there are several characteristics that must be available in ERP systems for companies and factories:
1- Integrated system.
2- A common database that supports all applications.
3- All indoor units are working in real time.
4- Flexible and open design.
Different types of ERP systems
There are several different types of ERP software designed for many industries in order to meet their specific needs and these types are divided according to their purpose:
1- The nature of its construction.
2- Their purpose.
3- Type of organization.
4- Operating systems and user interface.
5- Type of licenses.
Types of ERP systems by the nature of their construction:
Usually ERP systems consist of three components (Hardware – Software – Documentation ) so it is necessary for company owners to know the nature of building the system before buying it to make sure that it corresponds to the activity of his organization, and ERP systems can be divided by the nature of their construction into 3 types :
1- Divisible systems
2- Non-divisible systems
3- Module-based systems
Types of ERP systems according to their purpose
Most organizations have their own needs alone, so they may need a custom ERP system, and ERP systems can be divided according to their desired purpose into:
1- Systems suitable for industrial purposes.
2- Systems suitable for general purposes.
3- Special e-commerce systems.
Types of ERP systems by type of organization
These systems are very complex and can be classified into:
1- Public cloud.
2- Private cloud.
3- Hybrid clouds.
Types of ERP systems by operating systems and user interfaces
Operating systems are globally classified by their operating systems:
1- Computer systems.
2- Smart phones.
3- Tablet devices.
ERP systems depending on the type of licenses
The cost of obtaining licenses for these applications represents a large percentage of the total cost of the application, and these systems can be divided by license type into:
1- Monopolistic systems.
2- Open source applications.
How to choose a ERP system
When choosing a ERP system for your organization, you should consider several tips for choosing and implementing your system :
1- You should be aware of the problems that cause delays in the project and that you face during work and need an integrated system to solve them.
2- Define the requirements that the organization or company needs in a clear and comprehensive way before you start looking for the system itself.
3- The quality of hardware and operating systems must be determined within the organization or company to determine the quality of the system.
4- You should prioritize the system and not choose high features that you cannot benefit from because highly customized systems have a higher cost.
5- You must qualify the employees or those responsible for the system before starting work and choosing it because changes to the culture of your company can demolish what has been built.
The role of the ERP accounting system for companies and institutions
It is important to know the role of ERP systems within the organization or company, in order to be easy for employees to understand the extent of dealing with it, so the role of ERP systems can be summarized as follows:
1- Managing all departments of the organization or company ( financial management-inventory control management-procurement management-POS system-Production Management-Project Management).
2- Full awareness of information on all daily transactions and keeping them in an integrated and organized manner.
3- Linking all departments within the organization or company with one integrated system and in an orderly manner.
4- The possibility of dealing with the system through the internet.
5- Creation of control panels and various operating systems, especially for senior management, allowing to know the status of indebtedness, collection, and other performance indicators and workflow.
Advantages and disadvantages of the ERP system
The advantages that the ERP system offers to enterprises and companies are:
1- Optimization of business processes.
2- Determine the results of each department very accurately and in a short time.
3- The ability to share data and information between all departments in an organized manner.
4- Instant disposal of unnecessary processes and data.
5- Avoid duplication of records by entering the intervention of each unit of the ERP system in the same database in real time.
6- Saving the time of preparing reports in a manual way, so as to accurately access information between departments and units within the system.
7- Save the necessary time and labor so as to reduce the actual cost of Project Management.
8- When a company has a ERP system it is more competitive in the environment in which it operates.
The disadvantages of ERP systems for enterprises and companies are:
1- Installation of an ERP system is expensive.
2- Success depends on the skills and experience of the workforce, including education and how to make the system work properly.
3- Sharing false internal information between departments can reduce the efficiency of the program.
4- Some systems are difficult to use.
5- The effectiveness of the (ERP) system may decrease due to strong changes that occur when the system is implemented, there may be poor training.
6- The benefits of having a ERP system are not presented immediately with the execution of the program, they will appear long after the system is turned on.
ERP system cost prices
The cost of an ERP system varies from one organization to another depending on the nature of its construction, the size of the organization or company, and the characteristics you need within the system, and often ERP systems require additional resources that are not generally included in the base price, such as:
1- ERP systems can be complex to manage, and you need IT personnel to deal with any technical difficulties that may arise.
2- The system usually needs constant technical support, but software solution companies offer plans that include support at the lowest possible cost to not overwork the client financially.
3- Subscription prices for database storage operations by means of cloud bases.
The companies developing such systems follow a pricing model, which is the monthly one with levels that provide additional features, some also offer permanent licenses for a one-time fee.
Finally, you should make sure that the required modules or characteristics are taken into account, in addition to future expansion and business needs, and it is necessary to research the implementation costs and the duration of the process, preliminary research to get more information about the ERP program and different comparison between several systems to get to the best system for your organization or company.
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