ERP CHANGE MANAGEMENT
As we discussed in our starting posts we have to go through steps for managing the change in our project. The second step was Desire to participate in the change. We want to say now that regarding to publishing general purposing of our project, we have to motivate desire of users to participate in the change for publicizing the general purposes of the project.
In this post we will give you tangible and intangible benefits of our project as general, which as you know we have to disseminate the to all engaged users.
If you are new with this web log we request you to read preface first.
Desire for general purposes (Part 2-2)
Some other tangible and intangible ERP Benefits
Note: Instead of N put your goal percent number
- N percent increase in sales due to timely and faster shipments
- N percent increase in productivity due to availability of matched sets, reduced follow up and overtime
- N percent reduction in purchase cost due to less expediting and more time available for sourcing
- Customers/suppliers interaction improvement
- Lower implementation time and costs compared to tailor made systems
- Flexibility and scalability in new situations with low time and cost
- Forcing enterprise to rethinking and redesigning business processes to best practices
- Eliminating not necessary soft wares developed in home or by third parties
- ERP systems are process-oriented instead of traditional function-oriented approach
- In ERP systems business processes and data flows subordinate from each other
- Modules integration is automated and completed
- It is not necessary to implement all modules rather depending on requirments you can expand the system
- ERP system is based on Work Flow Management System(WFMS)
- ERP system is supported and updated from vendor
- ERP system is web enabled
- We implement ERP to organise your business and improve business efficiency, which reflects in reduced inventory
ERP is a tool to:
- Address “confusion” element of cost
- Coordinate various business activities
- Improve customer service
- Reduce time spent by material in waiting
- Provide proper basis for performance measurement
- Gain better control over business and accurate information, a necessary condition for any business improvement
- ERP is a powerful tool if used properly
- ERP is an integrated and formal approach
- ERP checks resource availabilty at each step. For example material, capacity, finance, human resouce, suppliers, information and time
- ERP simulates (What-If) capability at each step
- ERP provide "plan vs. actual" comparisons to improve subsequent planning
- ERP breaks down the business plan to various levels of detail
- ERP simulates resouce loads
- ERP commincates and cordinates results and operating information
ERP Is Not:
- A magic tool to solve your business problems
- A resource optimisation tool
- Merely computerisation
- Merely a tool to automate business transaction processing
- Merely a tool to reduce inventory
Benefits of an ERP system:
- The most significant quantifiable benefits involve reductions in inventory, material costs, and labour and overhead costs, as well as improvements in customer service and sales
- Significant paper and postage cost reductions as part of the yearly savings
- Faster product/service look-up and ordering, saving time and money
- Automated ordering and payment, lowering payment processing and paper costs
- Fast access to detailed account histories, providing more abundant information and improved planning and analysis
An ERP system in the Department of Management would:
- Save enormous time and effort in data entry and report production for budgets
- Allow more innovative and extensive budget report content and analysis
- Link the budget system to payroll, accounting, personnel and other departments, allowing nearly instant data exchange and ensuring such information is consistent and uniform across the board
- Provide easy access to trend data—financial information from years past is quickly combined into an up-to-date long-term view
- Empower departments to more closely measure program performance and results
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