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What is the ERP system? In which cases is is necessary to implement ERP system?

ERP Solutions - this systems for managing key business processes of the enterprise. ERP system includes modules: planning, budgeting, logistics, accounting, human resource management, production management, customer management. Corporate, accounting, managerial reporting allows senior management to get a comprehensive picture of the company, which makes ERP system an indispensable tool for automation of operations and ongoing support decision and policy-making. In essence, ERP system – it is a complex storage and usage of information, the ability to obtain data on the organization activities in the framework of a single system.

 

 


The implementation of ERP system project can be divided into the following stages: project planning, goal setting, diagnosis and analysis of requirements, selection and justification of the platform, a completed solution, planning of the information system, documentation and coordination of the design decisions, software development, testing, information system deployment , user training, operation and maintenance, and evaluation of results. Project management is based on the best practices and methodologies. Depending on the customer wishes, needs and size of the project, implementation of ERP systems can last as three months and up to 24 months.

Project cost on the implementation of ERP systems includes the cost of purchasing licenses (there is also the possibility of renting licenses) and the cost of services for setting up and implementation of the system or industrial solution. Cost of the project, of course, depends on the implementation methodology, the amount of consulting services, the desires and needs of the customer. You also need to consider the cost of IT infrastructure, team motivation and operation of the system.


Implementation of ERP system allows companies to increase their profits at the expense of loyal old customers and attract new ones; to reduce managerial and operating costs by 15%, reduce sales costs by 35% to save on working capital, reduce implementation cycle, reduce inventory levels of insurance , reduce accounts receivable, increase the turnover of funds in the calculations, increase inventory turnover, and improve utilization of fixed assets. 

Implement ERP system is necessary in cases when the clearly defined implementation aim, there is interest of TOP - management in clarity and automation of business processes in the organization, the company has the resources to implement and motivation, the customer decided with the platform and a team of implementers - developers.

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