Tuesday, June 15, 2010

Enterprise Ressource Planing

Ok! so we invented the numbers, then some people created abacus to account for them, then we decided it is easier to spread a 0123456789 (+), (/), (-), (x). and we chose a paper to save it, then we started keeping books and then, was the calculator, followed by the computer, programing languages, excel sheets, Stand alone business systems then ERP.

I don't know why I had difficulties explaining this to John my Previous accountant:

well I know why:

ERP: Enterprise Resource Planing as it's name suggests, is in short a platform that treats the data coming from different areas of the business.

it is preferable to get the definition from Wikipedia (or this website) but to see why John couldn't understand this it is necessary to look at the difficulties that arise when implementing the the ERP.

when you use an ERP you basically centralize the database and you save time and cost, you reduce data entry redundancy , easier inter department communication… so we know all the benefits

off course for John who spent 3 months to figure out that the printer is not a paper dispenser the concept of the ERP is difficult but for different reasons it is also difficult for most of us.

- ERP's are generally complicated and even when they are not, people take a lot of time to adapt to the change they bring
- ERP Implementation, very costly (consultancy fees) and eventually when people don't adapt the company needs more consultants to let people adopt the change.
- not Flexible at all: any change in the process you need more consultants to adapt the systems…

you get the trend ERPs sounds more like something that consultants came up with rather than what companies need.

Sounds familiar… I just can't remember when was the last time I had something that complicated… Anh yes….. it's my last PC. I had the same feeling about Windows® Vista® but now I have a MAC and soon I'll be trying the new Google Chrome OS.

as Apple alway states Technology should make people lives easier in other words the business should not at any time be limited to the tools it has.

it's not a question of if but rather when will ERP systems just become an other open source, free program that every company can download and use for free.

2 comments:

  1. Nice and always funny post. You said that ERPs are "not Flexible at all: any change in the process you need more consultants to adapt the systems…". I agree but the tendency is to simplify. For example in SAP ERP's (SAP is one of the most famous ERP) is getting easier to do these changes. If the changes don't involve programing they can be done by a user (with good knowledge of the system). So I guess the tendency is to improve this and make easier to do these changes.

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  2. Hey Afonso! much appreciate your comment! before learning that some companies are trying to supply an open source no license required ERP... I was convinced that the IT trend for the past 10-20 years is heading towards reducing the GAP that "big companies" create through their IT products. (i.e: first we paid for the email accounts, for document sharing, for storage...) now it's all free... so the same trend with ERP was/is predictable. Whenever there are big amounts being paid some one will just be creative and offer a way to cut the costs. this is why I'm doing an MBA.

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