Wednesday, September 21, 2011

What are the advantages of HR module in ERP

As you are aware that Human Resources is a fundamental part of the scheme of every successful organization. Information received and handled by this department needs to have a continuous follow-up and correct evaluation for the professional development and the social welfare of the workers.

However, due to the large quantity of information that is handled in this department, ( it is becoming impossible to handle this task manually or by a legacy system which has its own drawbacks. ERP is represented like a useful tool to help and orient the users to focus their work in the direct relationship with the staff, and to link the personal skills and aspirations of the personnel related to the objectives and goals of the company.

Through an ERP system it is possible to facilitate the centralized control and decentralized operation, which allows the leaders of the human resources area to focus on the strategic responsibilities of planning programs of personnel for development. Meanwhile, the operative activities are assumed and optimized by their own tool. By this way, an additional value is added.

ERP is able to provide the management of the Human Resources area with an integrated solution to the different processes of these sections, which includes the planning, the administration of payroll, the professional development, work health and administration in general.

It is also useful for decision making and analysis. The internal communication is an indispensable part of the daily tasks of the department, and therefore ERP is also prepared to provide a solution in this field.

The implementation of ERP contributes to automate the processes, setting resources free to develop tasks of major interest and optimizing the different Human Resources processes.

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Who are ERP package vendors and what their roles

ENDORS are the people who have developed the ERP packages. They are the people who have invested huge amounts of time and effort in research and development, to create the packaged solutions. If one studies the history of ERP packages and finds out how each package evolved, then it soon becomes evident that every ERP package grew out of the experience or opportunity of a group of people working in a specific business who created systems that could deal with certain business segments.

Vendor selection is not a popularity contest and bigger does not always mean better. ( While the financial stability, ensured longevity and broad spectrum of offerings provided by the top vendors are good reasons for selecting them, size is not without its downside. Size breeds bureaucracy and bureaucracy hamper personal attention and agility.

While small vendors that are not quite household names may carry increased risks in the area of long-term longevity, they may actually provide a better solution if they specialize in your industry segment rather than covering a broad spectrum of industries.

It is important to remember that the vendor, as long as they provide working software and capable personnel, really as very little responsibility for your overall success. Responsibility for success of failure lies within the four walls of your business, and if you import failure in the form of a third-party, it's still your responsibility.

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Enterprise Resource Planning and Return on Investment

Though many organizations spend lot of time and money researching, analyzing and justifying an enterprise resource planning (ERP) purchase, they hardly spend any time to scrutinize whether the application performs satisfactorily and gives the required output.

If organizations don't establish specific performance metrics, ( it will be very hard to gauge how well that product is working to meet their objectives, let alone correct any performance gaps.

Given that ERP system is somewhat expensive, some might wonder why more organizations don't engage in a thorough, after-the-fact audit. Reasons range from a lack of involvement by senior management to anxieties about whether the project will live up to its promise-and whose feet will be held to the fire if it doesn't. And somewhat surprisingly, after-the-fact audits are often skipped because no one agrees on what precisely constitutes a successful ERP program.

When the majority of the people you ask not may not sure about what an ERP is, it makes little difficult for your to search for the people who may know it thoroughly. On a technology level, ERP software integrates a company's departments and functions into a single program running on one database, a valuable step forward for improving efficiencies, because integration speeds up business processes.

For a HR manager ERP system is something different application from a production manager. For him it is a system for the employees to interact with each other. But getting bogged down in definitions is beside the point. The point is whatever methodology you use to measure your ERP, it should be applied consistently across the organization at specific points following the implementation.

How often you measure your ERP system will depend on the size of your organization and the depth of your software change. Typically, an audit should occur halfway through the implementation, again at three-quarters of the way through the implementation, and when it's complete. Then, you should follow up every quarterly.

There may be some further questions that how can the ERP application be measured up? Only a systematic, disciplined approach to measuring ROI can provide the answer. However, if the ERP audit focuses only on productivity gains, such as how many steps it takes to complete a shipping label, you won't get the clear of ROI. To get a clear picture the audit must take into account how well employees interact with the ERP system software. Whether the system empowers them to accomplish key tasks? How quickly do they adjust with its functioning methods? To get the actual result, user surveys should be conducted immediately after the training period and again six months later.

A polite approach to the employees to enquire about the functioning of your ERP system could get you closer to the software and its functioning. It will help you understand any shortcomings in the system as well as the need of further training to the employees which could make them more comfortable with the system. A logical and systematic approach to the ERP system by the employees is a must for a good result that ultimately reflected in the organization's return on investment (ROI).

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Web-enabled ERP

ERP applications are an integral component of any information architecture and today's application system are required to address more than the processes taking place within the walls of an enterprise, they must be able to address the players and processes involved in an extended enterprise that reaches customers, partners, suppliers and employees worldwide.

ERP vendors and developers must move to integration models, ( based on industry accepted standards and non-proprietary application programming interfaces (APIs). Web services promise to play a large role in this new integration model, enabling ERP functionality to be fully leveraged using industry standard technologies.

Within almost every industry there are business requirements to lower costs, increase revenue and improve operation efficiencies. In order to achieve these goal companies must connect internal groups, extend processes to partners, expand business opportunities and reduce transaction costs.

These business requirements can only be met by technologies that are cost-effective, flexible and agile. The technologies must support automated collaboration, real-time integration, secure interactions and low-cost coupling.

The new business models are forcing organizations to accelerate the business reengineering initiatives they undertook when they first began to implement ERP systems decades ago. To maintain competitive advantage, almost all companies must now be able to conduct their business on-online as part of an increasingly internet-based global economic community.

As we all know, the Web has improved performance and productivity, enabled collaboration, dismantled trade barriers and created an enormous range of global opportunities. As a result of the Web's burgeoning adoption and success as a means of conducting business, productivity has increased tremendously; however, the lack of interoperability has been frustrating to many.

Organizations must provide customers, employees, suppliers, distributors and numerous other parties with the information they need, when they need it. As a result, business systems and processes can no longer remain isolated and disparate. Business success now requires better performance from easier application integration.

Systems must share information internally with other applications as well, externally through Web applications, business-to-business (B2B) exchanges and value-added networks. These exchanges and transactions must be real-time, on-line and immediate - i.e. conducted anytime, anywhere and without compromise to security or transaction integrity.

Through the use of Web enabled services, the cycle time between buying and replenishment can be greatly reduced and the potential for errors virtually eliminated.

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The ultimate economical ERP framework in India

T o reach creation distinction, you require to have   a   constructive and well organized enterprise resource planning (ERP) framework in yo...