lunes, 14 de junio de 2010

ERP.- ENTERPRISE RESOURCE PLANNING.- SHOULD COMPANIES ADAPT TO ERPS OR THE OTHER WAY ARROUND?

An ERP (ENTERPRISE RESOURCE COMPANY) is a software that consolidates every operation process that takes place inside a company. Based on one single data base, a company may consolidate all its process gaining efficiency and also having communicated all its different areas. There is no doubt about its effectiveness but the question is if an ERP must be developed to one company in particular o can a standard ERP be sold and have the company adjust to it?
In my opinion, it will depend on the nature of each business. For instance if we take as an example the food industry, there are some big companies in the fast food industry that worked with ALOHA, a standard ERP, for a long time and recently have decided to switch for another and new standard ERP. Based on my experience in the fast food industry and after having worked with both, an specific and personalized software is sometimes better because in the fast food industry companies use for a long time the same ingredients and receipes and their menu does not change a lot. Additionally, fast food restaurants operate under the same scheme under a proven efficient method so that implies that administrative and operational process do not change frequently. After worked with Aloha to operate a hamburger chain (Wendys) and after working with a personalized software (Subway), if I could choose among those options I would definitely take the alternative of a personalized software that might provide you more insight, detailed and useful information. Daily operations for fast food is very predictive and schedules, inventories, purchased, labor and receipes are constant.
On the other hand, if we talk about an upscale restaurant where a menu changes every day, and also the operational process are changed every day according to each customer profile, then I would choose a standard ERP, that might contain general information and which will not be to strict. I believed standard ERP are more receptive to gather different information while personalized softwares are less receptive to changes in information.
A disadvantage of having a personalized software developed is that it becomes more expensive in the short term to develop it and in the long term it is more difficult to change to another software in case there is a need. Additionally, in case there is a flaw, few people know how to handle the problems. On the other hand, standard ERP´s have a support team that might provide service at any moment.
In conclusion, I am convinced that a software or an ERP are strategic for every company, and weather they are personalized or not will depend on the nature of each business.

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