What is erp. Monitoring and analysis of performance indicators. ERP system implementation

ERP conceptintroduced by analyst Gartner Lee Wylie in 1990 in a study on the development of MRP II. Wiley predicted the emergence of replicated multi-user systems that provide balanced management of all resources of the organization, not only related to the main activities of the manufacturing enterprise, but also combining data on production, purchasing, sales, finance, and personnel through a common data model. In the early 1990s, the concept gained prominence through support from application software vendors.

In this way, ERP - Enterprise Resource Planning (English) - information system, created to process business transactions (business processes), the use of which helps to increase the competitive advantage of the company. In a broader sense, an ERP system is understood as a methodology for effective planning and management of company resources.

If in the early 1990s ERP systems were introduced, first of all, in industry, and, as solutions implementing MRP II as a component, by machine building enterprises, then in the second half of the 1990s the use of ERP systems became ubiquitous in the service sector. , including telecommunication enterprises, energy sales companies, and even government bodies and non-profit organizations... By the same time, due to the rapid growth in the number of modules in ERP systems and their functionality, the concept of ERP systems as a comprehensive software for organizations, fundamentally replacing all other application programs, was replaced by the early 2000s by the allocation of such functions as CRM and PLM in separate software packages from ERP and delineating the ERP framework as universal systems for back-office processes and resource management.

As a characteristic feature of the ERP strategy there is a principled approach to the use of a single transactional system for the vast majority of operations and business processes of an organization, regardless of the functional and territorial disunity of the places of their origin and passage, the obligation to consolidate all operations into a single base for subsequent processing and obtaining balanced plans in real time.

Replicability, that is, the ability to apply the same software package for different organizations (possibly with different settings and extensions), appears as one of the prerequisites for an ERP system. One of the reasons for the widespread use of replicated ERP systems instead of custom development is the possibility of introducing best practices through reengineering business processes in accordance with the solutions applied in the ERP system. However, there are also references to integrated systems developed for a separate organization to order as ERP systems.

The need for a comprehensive application of the ERP system in geographically distributed organizations requires support in a single system for many currencies and languages. Moreover, the need to maintain several organizational units (several legal entities, several enterprises), several different charts of accounts, accounting policies, various taxation schemes in a single copy of the system turns out to be necessary condition for use in holdings, TNCs and other distribution enterprises.

Applicability in various industries imposes on ERP systemson the one hand, the requirements for universality, on the other hand, support for the industry-specific extensibility The main large systems include ready-made specialized modules and extensions for various industries (specialized solutions are known within the framework of ERP systems for machine-building and manufacturing industries, mining enterprises, retail, distribution, banks, financial institutions and insurance companies, telecommunication enterprises, energy, sector organizations government controlled, education, medicine and other industries).

Possibilities and functions of ERP systems.

Enterprise resource planning processes are cross-functional, forcing the firm to move beyond traditional, functional and local boundaries. In addition, the various business processes of an enterprise are often interconnected. Moreover, the data previously located on various heterogeneous systems are now integrated into unified system.

ERP systems use “best practices”.

Enterprise resource planning systems have incorporated over a thousand of the best ways to organize business processes. These best practices can be used to improve the performance of firms. Selecting and implementing ERP systems requires implementing these best practices.

ERP systems make organizational standardization possible.

Enterprise resource planning systems enable the organizational standardization of various geographically dispersed divisions. As a result, units with non-standard processes can be made the same as other units with efficient processes. Moreover, the firm can appear to the outside world as a single organization. Instead of receiving different documents when a certain company deals with different branches or enterprises of a given company, this company can be presented to the world in the form of a single general image, which leads to an improvement in its image.

ERP systems eliminate information asymmetries.

Enterprise resource planning systems put all information into one and the same master database, eliminating numerous information inconsistencies. This leads to several results. First, it provides increased control. If one of the users is not doing their job, the other sees that something has not been done. Secondly, access to information is opened for those who need it; ideally, improved information for decision making is provided. Thirdly, information ceases to be the subject of mediation, as it becomes available to both management and employees of the company. Fourth, the organization can become “flat”: since information is widely available, there is no need for additional low-value workers, whose main activity is preparing information for distribution among the company's management and employees.

- ERP systems provide information in real time. IN traditional systems a large amount of information is recorded on paper, and then transferred to another part of the organization, where it is either reissued (usually aggregated), or translated into a computer format. With ERP systems, a lot of information is collected at the source and placed directly on the computer. As a result, information is immediately available to others.
- ERP systems provide simultaneous access to the same data for planning and control.

Enterprise resource planning systems use a single database, where most of the information is entered once and only once. Since the data is available in real time, virtually all users in an organization have access to the same information for planning and control. This can lead to more consistent planning and management than traditional systems.

ERP systems facilitate communication and collaboration within an organization.

Enterprise resource planning systems also facilitate communication and collaboration within an organization (between different functional and geographically dispersed divisions). The presence of interrelated processes leads functional and geographically separated divisions to interact and collaborate. Process standardization also fosters collaboration as there are fewer conflicts between processes. In addition, a single database facilitates interaction by providing each geographically divided and functional unit with the information they need.

ERP systems facilitate communication and collaboration between organizations.

The ERP system provides an information highway for organizing interaction and cooperation with other organizations. Firms increasingly open their databases to partners to facilitate procurement and other activities. To this system worked, you need a single archive that partners can use; and ERP systems can be used to facilitate such exchanges.

Most modern ERP systems are built on a modular basis, which gives the customer the opportunity to select and implement only those modules that he really needs. Modules of different ERP-systems may differ both in name and content. Nevertheless, there is a certain set of functions that can be considered typical for software products of the ERP class. Such typical functions are:

· Maintenance of design and technological specifications. Such specifications define the composition of the final product, as well as the material resources and operations required to manufacture it (including routing);
· Demand management and the formation of sales and production plans. These functions are designed for demand forecasting and production planning;
· Planning of requirements for materials. Allows you to determine volumes different types material resources (raw materials, materials, components) required to fulfill the production plan, as well as delivery times, batch sizes, etc .;
Inventory management and procurement activities\u003e. Allows you to organize the maintenance of contracts, implement a centralized procurement scheme, ensure accounting and optimization of warehouse stocks, etc.;
· Planning of production facilities. This function allows you to monitor the availability of available capacity and schedule their utilization. Includes rough planning of capacities (to assess the feasibility of production plans) and more detailed planning, down to individual work centers;
· financial functions... This group includes financial accounting functions, management accounting, as well as operational financial management;
· Project management functions. Provide scheduling of project tasks and resources required to implement them.

The structure and main functions of ERP systems are also clearly shown in the figure. (Fig. 1)

Fig. 1

The main capabilities of ERP systems can be presented in the form of four blocks: planning, accounting, analysis, management.

Planning.Planning the activities of an enterprise at various levels means:

· Form a sales program.
Carry out production planning (the revised and approved sales program is the basis of the production plan, the integration of these plans data greatly facilitates the process production planning and ensures their inseparable connection).
· Form a master production schedule (detailed operational production plan, on the basis of which planning and management of purchase and production orders). Formulate purchase plans.
· Carry out a preliminary assessment of the feasibility of the formed plans at various levels of planning to make the necessary adjustments or make a decision to attract additional resources.

Accounting.If the plans have received their confirmation, they acquire the status of actual plans, and their implementation begins. The previously modeled flow of dependent orders turns into a real one, generating requirements for materials, labor resources, capacities and money. Satisfaction of these needs gives rise to accounting actions that ensure the prompt registration of direct costs related to manufactured products (material, labor, operating costs in relation to tasks, technological operations, design work, maintenance work), and indirect costs allocated to financial responsibility centers. All operations for registration of direct costs are entered, as a rule, in physical terms of standard consumption (material - in the appropriate units of measurement, labor - temporary, etc.). To reflect the appropriate financial result ERP systems offer powerful tools for customizing financial integration, allowing you to automatically translate consumed resources into their financial equivalent.

Analysis.Due to the prompt reflection of the results of activities, the management personnel gets the opportunity in real time to carry out the comparative characteristics of plans and results, and the presence of additional modules for calculating key indicators and building mathematical models greatly simplifies the business planning process.

Control.The presence of operational information feedback on the state of the control object, as is known, is the basis of any control system. ERP systems provide this kind of reverse (reliable and operational) information about the status of projects, production, stocks, availability and movement money and so on, which, as a result, allows you to make informed management decisions.

Thus, we can talk about the extensive name of the functions and capabilities of ERP-systems that allow modern companies to manage their activities efficiently, stably and reliably.

ERP abbreviation comes from the English expression Enterprise Resource Planningwhich literally means enterprise resource planning. In theory, such a system is a general strategy for the company, which takes into account the following areas:

Financial resource management - tax reporting, accounting, budget planning;
Human Resource Management;
Asset Management;
Interaction with partners and accounting of the history of customer transactions.

On the practical side, speaking about ERP business systems, they mean software for automating each of the listed areas, as well as other processes of the company's activities to bring them into a common interconnected database necessary for the operation of the enterprise.

In simple words, ERP systems are complexes of activities, including: models of information flow management at the enterprise, equipment for its storage and processing, software, IT department and specialists technical support, as well as directly users.

Building an IT system for enterprise resource planning

As a complex software, ERP system consists of the following elements:

Platform - the main environment (kernel) that ensures the operation of the program components, as well as the basic functionality (reference information, functions) of the company. This is the basis of the system, without which its work is impossible.
Data management tools - this includes storage on the server, programs for processing information and transferring them for the operation of modules.
Plugins - programs that are independent of each other that connect to the platform and use the main databases in their work. It is the presence of independent modules that can be disconnected and connected without disrupting the operation of the entire complex that distinguishes ERP systems from other types of software used in automating business processes.

The modules connected to the main platform of the production resource planning system are conventionally divided into three groups:

Internal - programs used within the enterprise, to which employees have access.
External - programs to which clients and partners have access (for example, a personal account of a reseller's dropshipper).
Connectors - programs for connecting with other software products that are not part of the ERP system, but are used by the company in its activities. They exchange data.

Where to get an ERP system for an enterprise

There are three ways to purchase resource planning software:

Creating your own product... Often it turns out to be an irrational method, since the lack of a professional approach can lead to a situation where only one direction will be taken into account, which will not give a tangible effect. Moreover, the system introduced in this way is usually difficult to replace or supplement.
Purchase of a ready-made platform and its implementation in the enterprise... Here you need to do right choice according to the activities of your company. High-quality and well-known products are quite expensive and require constant support from the developer.
Professional development of ERP systems individually for the company... Only 20% of programs created on the domestic market are successfully integrated into the work of enterprises. This means that the risk of a company to receive a low-quality product at an inflated cost is quite large.

How to choose and implement an ERP system

There is no one-size-fits-all resource planning system that fits all companies. For each production, its most optimal product is selected, which is then adjusted during the implementation process.

Types of ERP systems for enterprises

The classification of ERP systems is carried out according to several parameters, the consideration of which will help you in choosing the right product. So, according to their intended purpose, they can be industry-specific and general. The first option is suitable for very large companies, as well as for enterprises that produce a unique product or use non-standard business methods.

By the type of organization, systems of the following formats are distinguished:

Public - Many users have access to the general functionality of the program, but your data is available only to employees of your company.
Private - the program is isolated and can be changed and refined for the company's tasks.
Hybrid - a combination of two types.

By the type of information storage:

Cloud - databases are located on external servers.
Internal - the data is stored on the company's own server.

By user interface format:

Stationary (desktop) - software for connecting to databases is installed on a PC and can work independently from the Internet using only internal communications.
Browser (working only online) - access to the system is carried out through the company's website and the personal account of an employee, client or partner.

By software architecture:

Modular - consist of many components (modules) designed to solve various problems.
Monolithic - unified comprehensive programs.

By license class for use:

Proprietary - closed software, for the use of which you need to pay for a license.
Open source - free programs open source.

Mistakes in choosing a resource planning system

The wrong choice of ERP enterprise management system not only entails additional costs, but can also negatively affect the operation of the enterprise. To avoid mistakes, you need to know the main ones:

Lack of a correctly chosen and clearly formulated goal... It is important to understand that ERP should improve the company's performance by adopting the positive aspects and compensating for the negative ones. Therefore, when choosing, it is necessary to determine exactly what effect from the implementation should be obtained. If your goal is to optimize the business as a whole, you will not get the desired result. All tasks must be specified in the terms of reference (TOR). In this case, the system must be adapted to the company, and not vice versa. It is wrong to completely rebuild a business, especially if it is profitable, to fit an ERP system.
The wrong choice of methodology for solving the assigned tasks... Each ERP system is built for a specific area of \u200b\u200bthe business. It can be adapted for the production area or exclusively for trade.
A one-sided view of system selection... The team of specialists making up the technical assignment, choosing and controlling the system implementation process should include representatives from various departments of the company (IT, sales, personnel, production). Otherwise, the final product will be selected from the standpoint of the convenience of only one link of users and will not bring the required efficiency to the enterprise as a whole.
Insufficient qualifications of the developer and specialists implementing the implementation... The process of creating and integrating a resource planning system is costly and many companies, in an effort to reduce costs, turn to firms with little experience or use free ERP systems, which is quite risky.
Low level of control over the process of integrating the program into the system.
Complexity of the interface... If the program is too complex for intuitive understanding, you may face the problem of the need to train staff to work with it. It also increases the risk of accidental data entry errors, which entails incorrect planning and all the ensuing consequences.

What functions should a resource planning system provide

The main tool in business planning that allows you to make a decision is reporting documentation. It is she who is the basis of the ERP, which, in turn, should provide the ability to analyze report data from various positions. Therefore, an effective ERP system must have a number of the following functions:

Providing convenient document flow... The main purpose of ERP systems is to provide fast documentation (invoices, invoices, reports, price lists), as well as subsequent operations with them (search, access, forwarding, editing).
Planning... The system algorithm, especially for production, should allow planning payments, deliveries, warehouse operation, seasonal changes, and production volumes. For each company, production planning is individual in nature and is tied to the volume-calendar strategy.
Transparency of information... The program should record all operations, parties, volumes and dates of their performance, which will make the company's work more transparent for analysis.
Access control for different levels... Since the system covers a very large amount of information about the work of the company, most of which should remain closed to employees of lower levels, customers and partners, it should allow you to hide some of the data for users with different access.
Unified data network... The ERP system should provide the ability to track all processes separately (for example, transactions) at all levels from the purchase of raw materials and production, to the registration of sales and payment of taxes.
Personnel accounting... The program should provide for the possibility of monitoring the number of personnel, planning the schedule of exits and hours worked, taking into account the level of qualifications of employees and scheduling vacations, passing training courses. Also, an effective planning system provides for the possibility of calculating salaries and bonuses, taking into account the form of remuneration.
Work with providers... The functionality of the system should allow to store and process the supplier base, send requests for availability, plan the formation of orders, release working capital and payment of bills, control the delivery process, and keep records of purchases.
Work with clients... The system should allow full accounting of data for each client, regardless of how many legal entities are included in the structure of the latter. This implies not only the ability to provide the client to work through his own account, but also the storage of data on completed transactions, accounts receivable, supply planning, invoice processing, cooperation history. This allows you to study the demand and the level of profit received from each client.
Service and repair... If we are talking about production, this part of the program should provide for the planning of technical inspection of equipment, a schedule for scheduled repairs, modernization or replacement of equipment of the enterprise. For trade enterprises the system should provide for the possibility of accounting for service maintenance of goods sold and repairs under warranty obligations.

Features of ERP implementation

The resource planning system operates with databases, of which, as a rule, there are a lot. The information itself can be in various media, including paper documentation, and therefore its transfer to electronic format is a huge work. The data itself is divided into two groups:

Important - information that is the basis of the company's activities. These are data on the work and production management, reporting of the sales department and personnel officers. They must be used in the ERP system without fail.
Are common - information relevant to specific companywhich is not used by the company all the time, but is also important. These data are added to the system as needed or at the request of the company's management.

An ideal ERP should include the ability to use all kinds of data, but in practice, to simplify the implementation process, the important are first taken into account, and then the general ones are gradually integrated.

Based on what data should be used and the required functionality of the system, a technical task is drawn up. It is an official document (instruction) demonstrating what tasks and goals need to be achieved in the implementation process. On the basis of the TOR, a schedule of integration works is drawn up.

There are three strategies for implementing an enterprise resource planning system:

Step-by-step integration - first, the main modules are launched into operation (for example, financial accounting, bookkeeping and document flow), and then after debugging their work, the rest are gradually introduced. This method is very time consuming and cannot be demonstrated immediately. It is often used by companies when developing a system on their own.
Complex implementation - the system is applied in all directions at once and in full, and then gradual debugging of work is carried out. This method allows you to quickly integrate an enterprise resource planning system. It is used when purchasing ready-made software.
Combined method - The implementation of ERP systems occurs at once in all areas of activity, but in stages. This strategy allows you to minimize implementation time with the least loss of quality of work. This method is most often used by private companies offering services for the development of individual software.

How an ERP system works and who needs it

Given the complexity and high cost, ERP implementation will be appropriate only for large companies, where the amount of data for accounting is very large and requires systematization. Such systems demonstrate high efficiency for large-scale production, in various corporations and holdings. If the company does not produce a wide range or is engaged in the manufacture of small batches, it does not need such a serious resource planning system, and will only slow down the process and lead to unnecessary losses.

The only exception, according to experts of consulting agencies, is the use of ERP systems by small companies operating in a very competitive environment, where the automation of all processes creates an additional advantage.

To understand whether you need such a system, you need to calculate the cost-effectiveness of its implementation. It can be determined by various parameters (decrease in inventories, speed of production, staff reduction, increase in labor productivity), and as a result, for the enterprise itself, it should bring additional profit or, at least, reduce costs.

A quick overview of popular ERPs

Most often, the main ERP systems of companies are finished products adjusted for the activities of the enterprise. They can be paid or free. With proper implementation, you can achieve efficiency in both cases.

Popular free products:

ERPNext - a minimalistic program for the work of a private entrepreneur (IE). The main drawback is limited disk space, which can be increased for an additional fee.
Galaxy ERP - designed for the domestic market and allows you to take into account frequent changes in legislation.

Paid programs:

SAP ERP is one of the most popular systems offering wide functionality and user-friendly interface.
1C: Enterprise is a fairly popular and affordable system that offers a large number of specialized solutions.
OpenBravo ERP - a program for the middle level with convenient scaling and affordable cost.

ERP Pros and Cons

Most of the shortcomings of ERP systems stem from its main qualities, since the main problems that companies face when implementing a program are associated with making mistakes when deciding on the need to use and direct choice of software.

Disadvantages of Resource Planning Integration

Despite the fact that the purpose of ERP systems is to improve the production process, they have their drawbacks. Among the latter:

Complexity of the program and, as a result, high purchase and implementation costs.
Increased requirements for storage and data processing equipmentincluding servers for storing backups. It must be reliable and fast, which determines the high cost.
The need for additional data protection, careful control of the security system and setting up the access hierarchy. Storing information in electronic format, and especially with access via a network, increases the risk of theft or destruction (intentional or accidental) of important documents.
Dependence on the company's energy supply... If in offices, warehouses or there is a problem with the electrical network in the sales area of \u200b\u200bthe company, the work of the company may completely stop.

Practical advantages of an ERP system

Implementing a strategy and software for accounting and resource planning is effective method to achieve improvements in the company, which has the following advantages:

The ability to integrate into various types of production and quick adaptation to a wide range of enterprise activities. ERP system is suitable for industrial complexes, banking organizations, trade enterprises, service sectors.
Support of planning methods in various areas of the company.
The ability to build a virtual enterprise.
High-quality accounting of finance for all departments.
The ability to manage corporations with a large number of international divisions and remote employees.
Scalability and flexibility for implementation in enterprises of various sizes.
Ability to work with other programs and applications used in the enterprise.
Integration of data into a single system, which makes it available to multiple departments.

Understanding the features of the ERP system, what it is in simple words and how to choose for your enterprise, you will be able to warn yourself against the erroneous purchase of an expensive product you do not need, choosing the most effective one, you will be able to correctly implement the implementation, increase the efficiency and profit of the company.

According to McKinsey (leading consulting company), these figures are 4 times lower than in the United States of America.

The main purpose of ERP systems is automation. The technology includes different blocks:

planning the organization's work;
budget control;
logistics;
accounting control;
management of activities and employees;
customer management.

Reporting (managerial) allows executives to see a complete picture of the company's production efficiency.

This makes modern ERP systems an indispensable element of the organization's daily activities, the main tool for automation, strategic control.

The technology is a complex storage and the ability to use data in all areas of the enterprise in different directions.

ERP implementation enterprise management is divided into the following stages:

planning;
definition of tasks;
verification and goals;
selection and preparation of the platform;
information creation;
preparation of documentation and approval of projects;
software development;
testing of the created systems;
system implementation;
training;
work and support;
review of the results.

Project management is based on the most effective practices and methods. The timing will depend on the wishes and needs of the customer, the size of the idea (EPR implementation can last from 3 to 24 months).

The cost of ERP implementation will include the purchase price of licenses (there is a possibility of a lease contract), services for setting up and putting the system into operation of an enterprise or industry.

The price tag also depends on the methodology for introducing the software product into operation, the number of services of the consulting partner, the needs and ambitions of the customer. Do not forget about paying for the development of the IT structure, ensuring employee motivation and using ERP.

ERP "Enterprise Management" allows an enterprise to improve its own due to:

stable relationships with old customers and attracting new customers,
reduction in management and operational costs (by about 15%),
reduction of commercial expenses by 35%,
saving circulating elements,
reduction of the implementation program,
reducing the insurance factor of storage facilities,
reduction,
increase in turnover, various stocks,
optimization of spending of key funds.

The implementation of such a system will only be needed when the company has clearly set a goal for itself. Top management must understand and be interested in automating the company's activities.

You will need to find resources and motivation for employees to implement the system, the customer must choose the right platform and module developers.

ERP class systems consist of a single information store that includes all corporate data of the enterprise.

They are able to provide easy access to programs for any number of employees of the organization with a certain level of authority.

The data is corrected via the functions (function terminal) of the program.

Key functions of ERP systems:

accounting for design and technological characteristics that determine the composition of the parts produced, as well as the resources and mechanisms necessary for their production;
creation of sales and manufacturing plans;
creating a plan for the need for raw materials and components, terms and sizes of supplies, which will be sufficient to comply with production standards;
control of stocks and supplies, accounting of contracts, sale of centralized purchases, supervision and optimization of stocks in workshops and warehouses;
distribution of production resources from full-scale to the use of individual elements, equipment;
optimization of the use of capital, including the creation financial plan and strict control of its adherence, accounting of material and management activities;
control of projects, including the stages of development and resource planning.

ERP "Enterprise Management" is built on a modular principle. This approach allows you to control all the economic and management mechanisms of the company. Each element is responsible for collecting information in its industry, and then feeds the data into a single database.

ERP systems development is built on several levels. All the main elements are based on the main one, on the second additional, auxiliary ones. By this definition, it is easiest to imagine the principle of operation of systems.

Basic modules of the ERP system include functions for production management:

development of a plan for capacity consumption;
calculating the volume of required raw materials;
warehouse stock management and purchasing mechanism.

Additional elements are a collection of several management modules:

DELIVERY - calculation of potential demand for a product, logistics of warehouses, production and household activities, control of contractors;
PRODUCTION PROCESS - control of mechanisms from the moment to disposal;
EMPLOYEES - accounting and planning of wages, creation of a work schedule, development, implementation of motivation;
CONTRACTORS -, sales support and other CRM activities;
SALES - determination of sales channels, cost, transportation, orders;
FINANCE - creating general documentation, sending information on accounts taking into account debtors and creditors, using accounting and providing reports.

ERP Enterprise Management implements a structure that will depend on the developer. At the request of the customer, the program can work only partially.

Implementation of ERP systems in enterprises helps to optimize processes.

Programs are categorized as follows:

Appointment. In general, it is the same for all systems, however, different programs are oriented in different ways. There are industry-specific ERPs (used for a very large company or in a unique production) and general-purpose ERPs (more popular, they focus not on the specifics of the industry, but on the features).
Organization type. With the development of the enterprise, there are more opportunities for optimization. Now the classic separation (into and internal) is missing. The introduction of public, private and hybrid classifications has become convenient.
Architecture. Uninteresting part for the end user. However, the structure of the program has a strong influence on the implementation and development of the system. Usually modular ERPs (characterized by error protection, but complex implementation and tuning) and with a single structure (characterized by quick installation and setting).
License. Despite the fact that the cost of automation is only 15-20% dependent on the license, this can significantly affect the budget of the operation. They are divided into (1) basic, (2) proprietary and (3) open source (OpenSource) systems.

In the Russian segment of ERP there are a large number of both domestic and foreign ones.

According to analysts' estimates, the majority (more than 48%) was "occupied" by the German SAP AG system.

It is followed on the heels of Microsoft Business Solution products with a 13% share, and in last place in the top three products is Oracle, which captured about 11% of the ERP industry.

Such a large gap between the first place and the rest is due to the fact that SAP was the first to appear on russian markethaving offered itself to buyers back in 1992.

All over the world, the situation is somewhat different, there SAP and Oracle are fighting for supremacy.

Video about CRM and ERP systems:

More and more enterprises of various sizes around the world are striving to implement a powerful management tool known as an ERP system in their work. Its use is intended to establish effective control and planning of all strategically important for the organization of business processes, to optimize the functioning of the main production and auxiliary facilities.

ERP and ERP systems

Business strategy ERP (EntERPrise Resource Planning) is the integration of all divisions and processes of the organization: production facilities, financial, personnel and customer profile and many others. Such a combination is primarily aimed at optimizing the distribution of various resources within the enterprise.

If earlier it was a purely marketing concept, today an ERP system is most often understood as a class of specialized software. In a broad sense, it is a methodology for planning and managing all the resources of an enterprise. Historically, the ERP strategy was formed on the basis of its predecessors:

MRP - Material Requirements Planning.
MRP II - Production Resource Planning.

In contrast, an ERP system can be used for very large enterprises, often geographically distributed. In this case, we are talking about planning corporate resources, since it pays attention not only to production, but also to comprehensive financial planning... An essential feature of the ERP-system is also the possibility of its application at absolutely any enterprise, regardless of the specifics of the work, including those who are not engaged in production activities. Considering it as it should be noted the equipment with a more powerful complex technical meansthat facilitate or replace the decision-making process.

Purpose of the ERP system in the enterprise

In order to decide on radical changes in the activities of their company, related to the implementation of an information management system and the implementation of a new business strategy, management must clearly understand the need for this step, which should be expressed in the following key points:

unwillingness to accept the current state of affairs;
the existence of the need to use modern technologies to strengthen the position of a business entity in the market in a competitive environment;
expecting to receive significant benefits from the implementation.

First of all, the use of an ERP system is designed to contribute to the successful implementation of a similar business strategy, the execution of which should ensure effective planning and management of enterprise resources. To do this, it is necessary to optimize the work of its departments, namely to achieve maximum consistency between them and reduce administrative costs. This can be achieved through the benefits provided by the information system. It:

Increasing the transparency of business processes.
Solving problems with organizing and finding the information you need.
Improving the reliability and relevance of data.
Increasing the speed of document flow between departments.
Organization of a single information space between the head office and remote branches.
Reducing the time for filling out documentation and getting rid of possible errors.
Increasing the speed of decision making at all levels.

The ERP system ensures an increase in the competitiveness of an object not only by introducing more efficient business processes into its work. Its use should also lead to a reduction in the overall costs of the enterprise. Advanced planning, modeling and analysis tools help you optimize resources production activities, the financial sector, as well as the work of warehouse, transport and other departments.

Main features of work

In different companies, even dealing with the same business, all business processes can proceed in completely different ways. The standardized workflow offered by an enterprise management information system may differ significantly from the one used here before. For this reason, it is fundamentally wrong to consider it only as a software product, since its implementation requires large-scale internal changes from the company in the form of reorganization of existing business processes.

The conceptual features of these systems are directly related to their essence. Recall that the ERP methodology involves the consolidation of all vital divisions of the enterprise for the organization. effective management its resources. Such integration is realized within the information system through the presence of a single publicly available database. Information is entered into the storage only once, and subsequently can be repeatedly processed and used by various internal and external consumers. Compared with real life, in this case, there is a reduction in the time and effort of the company's employees on decision-making. It should also be noted that the ERP system is not an automated control system for technological processes, but an integrated information system based on their abstract model, the information into which is entered by living people.

Database structure, like work software package in general, it should be arranged in such a way as to reflect the activities of all departments, without exception. This approach makes it possible to monitor the total set of resources and business processes of the enterprise in almost real time, and therefore to carry out operational and strategic management by them.

One of the main tasks of ERP systems is to optimize the planning process and control over the implementation of the plan. Built-in intelligent algorithms greatly simplify its solution for its users. For example, planning and management manufacturing enterprise has many specific features associated with the heterogeneity of its constituent parts. So, at one plant there can be workshops that work both continuously and discretely. From this point of view, the implemented ERP-class system should be universal and contain a wide range of specialized modules.

Because the modern enterprises today they are often geographically distributed, it is very important that branches remote from the main office are provided with full access to general information.This is implemented by the most advanced network technologies used in the development of ERP systems, which also provide for the differentiation of user access rights to the information stored in them.

Functionality of ERP-class systems

Speaking of functions, we must not forget that any ERP-class product is an enterprise management system as a whole. The range of its capabilities will primarily depend on the scale and characteristics of the facility for the needs of which it is used. Consider the classic feature set:

Production

Maintaining design and technological specifications of manufactured goods or services performed in order to determine the amount of required materials and labor costs.
Drawing up production plans.
Planning and management of the technical capacities of the enterprise in various approximations: from individual units to workshop and production associations.

Finance

Operational accounting, financial, management, tax accounting and controlling.
Enterprise asset management, including fixed assets, securities, bank accounts, etc.
Comprehensive planning of the enterprise and control of its results.

Logistics

Formation of planned indicators of the required volumes of materials, raw materials, parts, components in accordance with production plans.
Supply and sales management: accounting of contractors, maintaining a register of contracts, supply chain management, implementation of warehouse planning and accounting.

Personnel

Managing the recruitment process.
Operational personnel and time records, maintenance staffing table, salary calculation.
Workforce planning.

Maintaining sales plans.
Management of pricing in various types of markets in order to form an adequate general strategy of the enterprise, a transparent policy for calculating the cost of goods: taking into account discounts and special conditions of sale.
Planning and control of ongoing advertising and marketing activities.

Projects. Reporting

Providing wide choice standardized accounting, financial and management reporting forms, as well as a flexible mechanism for creating custom.
Drawing up a general strategy: phased planning necessary for the successful implementation of deadlines, material, financial and human resources.
Monitoring the main indicators of the project.

Which enterprises can use their ERP systems

At first glance, it may seem that systems of this class are intended exclusively for large industries, since it is for them that the high complexity of the structure of resource flows and processes of various types is more characteristic. However, there are situations where it may not be enough for a small enterprise to use the MRP or MRP II classes. Today on the market you can buy software productswith different capabilities. Depending on the scale of the enterprise, where they can be effectively used, heavy, medium and light solutions are distinguished.

As for non-manufacturing organizations, ERP class systems are applicable for them as well. For such enterprises, and not too broad functionality will be enough. At the moment, there are small integrated or local varieties of systems that can meet the needs trading companies or organizations working in the service sector. It should also be noted that many developers offer their customers and industry products.

About classification methods

The most obvious criterion by which all ERP systems can be classified is the scale of the organization where they can be applied. From this point of view, depending on the number of jobs, it is customary to allocate solutions for:

Large corporations (over 10 thousand people).
Medium corporations (from 1,000 to 10,000 people).
Medium enterprises (from 100 to 1,000 people).
Small businesses (less than 100 people).

An important feature of the systematization of such information products is functionality. Depending on the scope of tasks performed, there is the following generally accepted division into:

Large integrated.
Medium integrated.
Financial and management.
Local.

The on-premises option is usually a unified, narrow-focused, boxed information product with a relatively low total cost. Most often, it covers one or more blocks in the field of the organization's finance or its accounting activities. Such systems are suitable for small manufacturing or trading companies.

Integrated information systems, depending on the scale of the target, can be medium or large. They cover all business processes corporate structures, namely interaction with suppliers and consumers, production of the final product, flows of materials and finance, relations with personnel, procurement, storage and distribution, project implementation and many others.

Modern ERP systems market

All software products presented on the domestic market today can be divided into two main categories: Russian and imported. The differences between them lie not only in the place of creation, but also in functionality.

Powerful Western developments serve as benchmarks for what is commonly called ERP systems. The clearest examples of such are the products of SAP, Oracle, PeopleSof, SAGE, Baan, Microsoft Business Solution. All of them can be applied to target objects of any level, including very large ones. However, their use russian companies can often be difficult due to the possible occurrence of the following problems:

Unreadiness of enterprises for serious reorganization of existing business processes. The scale of such changes is difficult to exaggerate. The business processes of foreign enterprise management systems are fundamentally different from those that are commonly used in our country.
Insufficient number of specialists capable of implementing the project of introducing an import ERP system in Russia with the proper level of quality.
The high cost of using such solutions.

Despite the general lag behind Western counterparts, modern Russian developments are gradually increasing their functionality. They are fully adapted to the work of domestic enterprises. And they can be successfully implemented if in a particular case a wide coverage of business processes is not required, but it is enough just to establish accounting for some areas of activity using an ERP system. Examples of advanced domestic developments are the products of 1C and Galaktika.

Looking Ahead - ERP II

The ERP II concept, which appeared some time ago, is the result of an improvement in the ERP methodology. Enterprise resource planning and management remain a major challenge here. However, the rapid development of the Internet, which initiated the emergence of a new methodology, left its mark, making traditional business partly electronic. ERP II is a combination of the classic enterprise management system with specific solutions for networked commerce.

It has now become extremely important to interact with your counterparties over the network. For this, there are two important areas: and customer relations. Intrafirm information ceases to be just such, goes out into the external environment and becomes the basis for cooperation with other business entities. The new concept in this case is formulated as the management of resources and external relations of the enterprise. In addition to the conceptual reorientation, ERP II systems received their own technological features.

Solution to the issue of choosing a system

The choice of software of this level is an extremely responsible process. An incorrect decision on this issue, especially for large-scale projects, can entail an impressive time and money in the absence of the expected result.

The effective implementation of a large-scale system, which, for example, must ensure effective management of a manufacturing enterprise, will necessarily require it to reengineer its business processes. It is important not to allow a situation in which, upon completion of the program implementation procedure, it would collect unused data or would not solve the necessary tasks. For this reason, it is better to invite a team of experts that have proven themselves in this matter.

There is a list of criteria on the basis of which the project team, in agreement with the administration of the target company, can make an optimal, cost-effective decision on the choice of a software product:

Compliance of the technical and functional capabilities of the system with the main objectives of the enterprise.
The total cost of ownership must fit within the budget allocated for this purpose. In addition to the cost of purchasing the system, this includes operating and other indirect costs.
The implemented ERP-class information system must comply with all generally accepted technical requirements, which means it must be scalable, reliable, resistant to possible failures, and have anti-virus and anti-hacker protection means.
The supplier shall ensure the subsequent maintenance and support of the installed software.

ERP systems implementation process

The implementation of ERP systems in enterprises accompanies the implementation of strategies of the same name. This procedure, depending on the size of the target, usually lasts from several weeks to several years. An organization can implement implementation on its own or use the help of companies specializing in this. The main stages of this process can be distinguished:

Primary organization. Here it is necessary to define strategic goals, objectives and outline the expected effect of implementation for a specific organization. Based on this data, it will be possible to draw up a technical project plan.
Project development. At this stage, an analysis of the current activities of the organization takes place: strategies for its promotion, business processes. Based on its results, a model of the system is built, and appropriate refinements are made to the work plan.
Project execution. Since the rules for conducting business processes are dictated by the ERP system being implemented, they are transformed here in accordance with unified requirements. If necessary, the development of reporting forms and algorithms for transferring data from previously used accounting programs is carried out. If at the previous stages the lack of functions of the system for the object is revealed, its completion is carried out. Finally, user training and pre-testing are carried out.
Start-up. In the process of use, possible errors and malfunctions are identified and eliminated.

An ERP-class management system today is not just a copy of expensive software installed on all computers in an organization, but also the main driving force promising business strategy. Its choice should be based on the existing needs and capabilities of the target object. From correctness the decision and the implementation of the steps of subsequent implementation depends on the further success of the entire business as a whole.

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