Enterprise Resource Planning (also known as ERP) refers to the approach that most corporations like to implement in order to centralize the functions of their departments in an advanced computer system. This approach is cost efficient because it consolidates all the activities of a firm in one piece of software. In addition, it is one of the important and useful tools to enhance the profits and lessen the losses incurred by companies. ERP is very advantageous and beneficial for corporations.
Enterprise Resource Planning is very essential to enhance corporate effectiveness in providing the demands and expectations of customers and clients. The integration of the functions, files, and activities of companies stored in software allows employees to access information that are significant to monitor the supply chain, as well as the production chain. Aside from this, ERP helps corporations save money since they do not have to allot a budget for the database management software that each department uses. Additionally, the approach can also lessen power consumption expenses. To maximize the implementation of this process, companies are encouraged to assign IT employees to maintain and provide support services for the ERP system.
When firms fail to allot sufficient investment for the Enterprise Resource Planning software that they use, the approach can affect the functionalities and efficiency of departments. In this regard, it is important that corporations create a policy that will protect the files stored in the system to prevent experiencing the common problems associated with ERP.
One of the disadvantages of Enterprise Resource Planning is that the use of software that will manage the activities of a firm can affect the workflow, competitive advantage, and employee morale. In addition, the implementation of this approach is very expensive and very risky. Since the files, activities, and corporate reports are centralized, there is a high possibility that some important and confidential files could be lost.
Instructions to Migrate Data to an ERP System
Data migration is a significant and sensitive process related to the implementation of Enterprise Resource Planning in companies. Planning is important before firms start with this process. To ensure successful transfer of business files, these are the simple steps to follow.
- Determine which of the corporate records should be transferred to the new system.
- Prepare a timeline for data migration.
- Create templates for the data.
- Do not forget to freeze and secure computer tools that will be used in the migration.
- Assess the efficiency and reliability of archiving settings to be implemented.