Planning Motivation Control

ERP ERP systems. Functions and subsystems ERP. Main differences between MRP and ERP class systems

ERPsystem (EnterpriseResourcePlanningSystem) - systementerprise resource planning.

A new stage in the development and implementation of enterprise management systems based on MRP II was ERP systems a. The purpose of systems of the classes MRP, MRP II and ERP is to facilitate the exchange of data between all departments within the company, as well as information support for the relationship with other enterprises. ERP systems are designed to manage all financial and economic activities of the enterprise. They are used to promptly provide the management of the enterprise with the information necessary for making management decisions, as well as for creating infrastructure. electronic exchange enterprise data with suppliers and consumers.

The American Society for Production and Inventory Management (APICS) defines ERP as follows: "ERP is a method for efficiently planning and controlling all the resources required to accept, execute, ship and account for customer orders in a manufacturing, distribution or service company."

ERP systems are based on the principle of creating a single centralized data warehouse containing all corporate business information: planning and financial information, production data, personnel data, and providing simultaneous access to it for any required number of employees of the enterprise, endowed with the appropriate authority. The presence of a single corporate data warehouse eliminates the need to transfer data from one system to another (for example, from the production system to the financial or to the personnel system), and also ensures the simultaneous availability of information to any number of employees of the enterprise with the appropriate authority. The purpose of ERP systems is not only to improve the management of production activities of the enterprise, but also to reduce costs and efforts to support its internal information flows.

ERP systems form a single standardized information space of the enterprise (combining all departments and functions), designed for effective management all resources of the company related to sales, production, order accounting. An ERP system is built on a modular basis and, as a rule, includes a security module to prevent both internal and external information theft.

The enterprise resource management system is designed to automate most of the processes at the enterprise: supply management, production, enterprise finances, all kinds of costs. The purpose of any ERP system is to facilitate information flows between all business units of the enterprise, as well as information support for interactions between other enterprises.

An ERP system consists of the following elements:

    a model for managing information flows in an enterprise;

    hardware and technical base and means of communication;

    DBMS, system and supporting software;

    a set of software products that automate the management of information flows;

    regulations for the use and development of software products;

    IT department and support services;

    the users of software products themselves.

The main functions of ERP systems:

    maintaining design and technological specifications that determine the composition of manufactured products, as well as material resources and operations required for their manufacture;

    formation of sales and production plans;

    planning the requirements for materials and components, terms and volumes of supplies to fulfill the production plan;

    inventory and procurement management: management of contracts, implementation of centralized purchases, accounting and optimization of warehouse and shop stocks;

    planning of production facilities from detailed planning to the use of individual machines and equipment;

    operational management of finances, including drawing up financial plan and control over its execution, financial and management accounting;

    project management, including planning stages and resources

What additional modules does it haveERPsystem versusMRPIIsystem:

    supply chain management module

    advanced planning and production scheduling module

    customer relationship management module

    e-commerce module

    product data management module (defines the specification for the product: the composition of the final product, the material resources required for its manufacture, etc. The specification is the link between the main production plan and the plan of material requirements.)

    financial management module (general ledger maintenance, settlements with debtors and creditors, fixed assets accounting, cash management, planning financial activities and etc.).

    demand management module. The block is designed to predict future demand for products, determine the volume of orders that can be offered to the client at a specific point in time, determine the demand of distributors, demand within the enterprise, etc.

    cost management module (accounting for all enterprise costs and calculating the cost of finished products or services).

    project / program management module.

    personnel management module.

    Business Intelligence add-on module, including solutions based on OLAP (On-Line Analytical Processing) and DSS (Decision Support Systems) technologies;

    stand-alone module responsible for system configuration

    final (detailed) resource planning module

Fig. 18 The main tasks of ERP systems

Advantages of using ERP class systems:

    ERP-system supports not only the internal needs of the enterprise, like MRP systems, but also external needs

    multifunctionality of the system

    system modularity

    availability of a single data warehouse containing all corporate business information

    mandatory availability of the possibility of electronic data exchange with other applications

    ample opportunities for modeling planning and forecasting processes

    ERP systems allow not only to manage the company's resources, but also to work with other areas of its activity: personnel, partner and client bases, accounting and financial reporting

Disadvantages of ERP systems:

    high cost of the software package

    high cost of implementation and maintenance

    the complexity of implementation, configuration, maintenance, operation

    the complexity of training employees to work with the system

Main differences between MRP and ERP class systems

The ERP system is not a simple extension of the MRP and MRP I. MRP and then MRP I systems were built and developed as closed systems serving the purely internal needs of the enterprise. ERP, on the other hand, has obligatory exits to the external environment and is designed to solve complex enterprise management problems.

In addition, the abbreviation ERP itself began to speak to specialists about more than it was originally intended: ERP refers only to software applications that help plan enterprise resources (financial, production, human), but today it is often used to refer to the entire class of business applications.

Also, ERP systems began to be used as the equivalent of corporate information systems. Often, an equal sign is put between the words corporate information system and the ERP system. But this is not entirely correct. An ERP system is necessarily a corporate information system, but a corporate information system may not be an ERP system!

An important difference between the ERP methodology and the MRPII methodology is the possibility of "dynamic analysis" and "dynamic plan change" along the entire planning chain. The specific capabilities of the ERP methodology significantly depend on the software implementation. The ERP concept is more "fuzzy" than MRPII. If MRPII has a pronounced focus on manufacturing companies, then the ERP methodology turns out to be applicable in trade, and in the service sector, and in the financial sector.

The main differences between the systems are as follows:

    Systems of classes MRP and MRP II work with industrial plants. The ERP system supports various types of production - the systems can be installed not only in industrial enterprises (assembly production, manufacturing production, etc.), but also in service organizations - banks, insurance and trading companies, etc.

    Systems of the MRP and MRP II classes only support production planning. ERP supports resource planning in various areas of the enterprise (services, trade, banks, IT projects).

    ERP-systems are able to work with several enterprises united in a concern, corporation.

    In ERP systems, more attention is paid to financial subsystems.

    In ERP systems, all information is stored in a single data warehouse, which allows using the business information contained in it for the purpose of its further analytical processing in Business Intelligence, OLAP systems, and decision support software.

    ERP has added mechanisms for managing multinational corporations, including support for multiple time zones, languages, currencies, accounting and reporting systems.

    ERP has increased requirements for infrastructure (Internet / Intranet), scalability (up to several thousand users), flexibility, reliability and performance software tools and various platforms.

    Requirements for the integration of ERP systems with applications already used by the enterprise (CAD / CAM / CAE / PDM systems, systems document management, billing systems, etc.), as well as new applications (for example, e-business). At the same time, it is on the basis of the ERP system that the integration of all applications used in the enterprise is carried out.

    A number of ERP systems have developed advanced customization (configuration) tools, integration with other applications and adaptation (including those used dynamically during the operation of systems).

Here are some names for the most common ERP systems:

    SAP ERP (SAP AG) - www.sap.com

    Oracle - www.oracle.ru

    Baan IV (Baan) - www.baan.ru

    Microsoft Dynamics (formerly Axapta, Damgaard Data Int.) - www.microsoft.com

    PARUS (Parus Corporation) - www.parus.ru

    Galaktika (Galaktika Corporation) - www.galaktika.ru

    BOSS Corporation (IT Co.) - www.it.ru

    1C: Enterprise (1C Company) - www.1c.ru.

In Russia, 93% of the ERP systems market is shared by five leading manufacturers. SAP remains the undisputed leader of the Russian ERP systems market - this company owns 50.1% of all sales. “1C” with a share of 22.3% takes the second place in the rating of ERP systems (see Fig. 19). Oracle, the main competitor of SAP (among large customers in the world, but not in Russia), was unable to significantly increase its share and remained with 9.6%. Next comes Microsoft. The last 5th place belongs to the ERP-system created by the Galaktika corporation. The rest of the firms are significantly inferior to the leading vendors.

Rice. 19Russian market structureERP systemsin 2009 by solution providers.

Capacity Requirement Planning
CRP
capacity planning

Component the MRP-2 methodology related to capacity planning. CRP systems (possibly as part of ERP) are designed to manage and allocate resources of available technological equipment.They use information about technological equipment(work centers), time funds of their possible use and technological routes and operations of manufacturing main products (nomenclature items)

BOM
properties of components and assemblies
Bill of material
product specification

A list of all assembly units, intermediate products, parts and materials that are used in the product with an indication of their consumption rates. It characterizes the demand for raw materials, components, semi-finished products, etc. depending on the release plan (implementation budget) finished products

planning
service management
project management
project management

Activity to ensure effective implementation complex projects, including determining the composition of the performers, planning the design stages and the required support tools, monitoring the execution of plans, etc. Supported by an appropriate ERP subsystem or stand-alone project management system

structural plan of the project
financial and economic management
content management
regulatory modeling

Determination of time and cost characteristics of enterprise processes

analysis of logistics support
logistics
MTO

An activity aimed at solving such integrated logistics support tasks as procurement planning, supply and order management. product codification, provision of products with spare parts and consumables

In this article we will talk about what is meant by the term ERP system, when this software appeared on the market and what it was created for, and also try to predict in which direction systems of this class will develop.

We will also try to answer the main questions that arise from those who decided to figure out why this software is so in demand by modern enterprises:

  • What software can be classified as ERP?
  • Why do companies around the world spend significant amounts for their business on the implementation of ERP systems?
  • How do these systems work?

History of the concept of ERP

Before starting a conversation about ERP systems, it is worth remembering where this concept came from. ERP term or Enterprise resource planning was a development of the concept of MRP (MPR-II), which was used to denote a class of systems developed back in the 60s of the last century and intended for organizing production processes (first of all - planning materials "MRP", and later resources in general " MRP-II ") and reference production accounting... Those. the very concept of MRP (-II) has been and still refers to information systems designed to automate production activities.

In the 1990s, the Gartner Group and a number of other companies looked for ways to apply the planning approaches of MRP systems to other areas of the business, expanding the capabilities of MRP in terms of planning activities and managing enterprise processes.

It was from these works that the term "ERP" was born, first used by the Gartner Group and intended to denote systems of a new class.

From the very beginning, ERP systems were positioned on the market as systems that, in addition to solving resource planning tasks, also solve data organization and optimization of processes related to the functioning of the back office, such as inventory management, sales, pricing, maintenance accounting etc.

Figure 1. The composition of ERP systems

In addition to the term ERP, the definitions "Enterprise Management System", "Integrated Enterprise Management System" are actively used, and in fact, they all describe ERP systems.

Architecture of modern ERP systems

Despite the fact that each company is somewhat unique, they all face common problem: in order to remain competitive in today's business environment, companies need a reliable and effective way storage and access to heterogeneous information. It is this task that a modern ERP system solves.

A typical ERP system is a collection of modules (or even separate applications), each of which manages a specific process: purchasing, sales, production, accounting and tax accounting, HR processes, customer support, CRM, warehouse logistics etc. At the same time, the system covers the main processes of all areas of the enterprise.

As a result, the ERP system is a complex information system information management within the organization, which solves the whole range of tasks of managerial, regulated and other types of accounting, in contrast to specialized software designed to automate a specific business process or line of activity.


Figure 2. List of tasks solved by the 1C: ERP system Enterprise management

As a result ERP implementation systems in the company, business owners and managers can simplify and automate time-consuming back-office tasks, help employees become more productive, and most importantly, get an operational (often in real time) cross-section of all areas of activity with the possibility of parallel analysis and development planning.

Classification of ERP systems

Having figured out what is usually understood by the term "ERP system", we will try to classify these systems by type. I must say right away that the classification is rather arbitrary, because there are quite a few signs by which such software can be classified: this functionality, positioning, size of organizations for which the solution is intended, and much more. We tried to simplify the classification as much as possible by dividing ERP solutions into the following groups:

  1. Integrated information systems. This group includes universal ERP systems. They can be adapted to the processes of a wide variety of companies - from large production facilities to financial institutions... Such solutions have a wide range of settings and advanced integration mechanisms to remain as versatile as possible and meet the requirements of different business sectors. The largest players operate in this market, and the market for such systems occupies the largest share in comparison with the markets for other types of systems (which we will talk about below). Examples: Oracle, SAP, Netsuite, 1C.
  2. Industry information systems. These ERP systems are focused on a specific industry, sometimes even on a narrow direction within the industry (for example, ERP systems designed to automate companies that sell air and railway tickets). Often, such products are released by startups or companies that, being unable to develop a product that compete with large players in already established markets, are trying to find their own small niche and take a leading position in it. Many large companies, entering this market, start with specific industries, gradually developing the solution towards maximum versatility. Examples: Microsoft Dynamics AX, Brightpearl, Epicor Retail, 1C.
  3. ERP for small businesses. Formally, such systems cannot be classified as ERP, nevertheless, small companies have enough functionality of such systems to meet all their needs at a lower cost of both the program itself and implementation, and subsequent ownership. Often, such ERP systems are modular, and the functionality is reduced in comparison with more expensive products.
  4. Thus, instead of installing an integrated information system, the company implements a small product that serves one or two key business processes, but does not cover other areas of the enterprise. Example: PeopleSoft (a system that implements the functions of accounting, personnel management and CRM), 1C: UNF.
  5. ERP systems open source. Open source ERP systems currently occupy a small part of the total ERP market. But such solutions are often supported by companies that have teams of developers and analysts on staff to refine and integrate the system with their local information resources. Example: Odoo.

Benefits of modern ERP systems

The ERP systems market is growing from year to year, both in value terms and in the number of workstations. This is evidenced by numerous market studies. Why are more and more enterprises, from giants to small companies, striving to implement modern ERP systems?

The main advantages of the ERP system implemented at the enterprise:

  • A deeper understanding of the processes taking place in the company and a decrease in the reaction time to changes. Thanks to the consolidation of all key information in a single system, it becomes possible to promptly receive management reports on all aspects of the enterprise in real time;
  • As a result, a private (but very important) advantage of consolidating operations and data in one system is to ensure the comparability of data, eliminate duplication and form a single vision of the ongoing processes for all participants;
  • Modern ERP systems contain built-in forecasting tools that can be used to make informed decisions about the next steps for business development;
  • Reducing costs by introducing unified end-to-end business processes, automating labor-intensive tasks, eliminating redundant processes, as well as simplifying training and adaptation procedures for new users;
  • Thanks to a uniform IT landscape, the ERP system allows you to increase the security of data storage, simplify the tasks of restricting access and thereby increase the level of information security.

Disadvantages of ERP systems

To complete the picture, having outlined the advantages, one should dwell on the disadvantages of switching to modern ERP systems:

  • High cost of implementation and ownership. Until now, the traditional ERP systems implementation scheme implies large initial costs for implementation. And the money must be spent even before the system starts working and the business gets its benefits.
  • High risks implementation. There are a lot of difficulties in implementation, here there is a heavy legacy in the form of the peculiarities of the old software that must be taken into account during the transition, and staff resistance to changes, and the lack of qualified personnel within the enterprise capable of organizing the transition process and further support, and much more. Until now, projects for the implementation of ERP systems in enterprises remain one of the most risky for business.
  • Lack of versatility of ERP solutions. Despite the fact that leading manufacturers are trying to make their solutions as flexible and suitable as possible for any business requirements, it is clear that the practice is far from theory. The market may simply not have a completely suitable solution, so the product is often adapted to a specific organization, which significantly increases the cost of the project.

ERP systems are constantly evolving, and leading vendors are trying to take into account the existing shortcomings in new versions of software and mitigate them as much as possible.

How to determine if your business needs ERP

Any company is unique in its own way, although it collides at different times with common to all similar organizations problems. Below we will try to help determine if the time has come to think about investing in an ERP system for your company.

If most of the points below can be applied to your enterprise, then it is probably time to seriously think about the need to implement an ERP system in the enterprise:

  • Your team members spend too much time on tasks that can be simplified or automated;
  • You do not have online access to the data that is required to make a decision here and now;
  • You have a lot of diverse integrations with external systems;
  • Your enterprise uses a large number of unrelated software products and tools;
  • You do not have reliable information on the balances of goods and materials in warehouses or cash at the cash desks;
  • You personally spend a lot of time searching for information, trying to increase the productivity and efficiency of employees, and departments are difficult to interact and are reluctant to exchange information with each other;
  • You do not have full access to information when you leave the office;
  • You do not have enough tools for monitoring the implementation of the decisions made.

To be sure that the investment in a new ERP system will pay off, you need to detail the specific problems that exist in your organization, and before making decisions, understand exactly how the ERP system can help solve these problems.

Today's international market for ERP systems is huge and continues to grow. Today, it represents thousands of software providers, the exact number of which no one knows - some players leave the market, but new ones are constantly appearing.

Mainly presented on the market industry solutions developed for the needs of specific industries: certain areas of production, logistics, retail other. However, the leaders international market companies that offer the most comprehensive solutions are held.


Founded in 1972, SAP has now opened affiliated companies around the world and organized interaction with a number of external teams involved in the development of add-ons for the company's software products.

SAP is represented on the market by two main products:

  1. SAP Business All-in-One. This ERP solution, built on the latest SAP HANA platform, is positioned as complex solution covering 25 business areas, including, of course, manufacturing and sales, and is intended for large companies... Includes a business intelligence (BI) and forecasting product.
  2. SAP Business One. It was released to market to strengthen SAP's position in the small / medium-sized organization segment. The solution is built on the same platform as SAP All-in-One, but less functional and versatile.

Microsoft came in second in 2017 with Microsoft Dynamics AX. Despite the lesser versatility compared to SAP products, the solution is suitable for companies engaged in trade and services, due to which the company annually increases its market share and actively develops its product.

Third place was shared by Oracle and Infor, followed by (by a large margin) second-tier companies: Epicor, Sage, NetSuite and others.

The Panorama study also notes that SAP took the first place in terms of return on investment in ERP. In terms of implementation speed, Oracle products are in the lead, and NetSuite systems have taken the lead in terms of implementation costs, which cost customers an average of 2.8% of revenue.

Separately, the advantages of Infor systems were noted, such as wide opportunities for using mobile versions by remote offices and employees, reliable and intuitive tools for analyzing business data, and optimal indicators of time and cost of implementation, as well as return on investment.


Leading position on Russian market with a share of slightly less than 50%, SAP takes, then 1C follows with a share of about 32%, and with a significant margin the other players: Oracle, Galaxy and others.

However, in addition to assessing the market share in total terms, you can look at the number of workstations in the Russian market. In terms of the number of implementations and automated workstations, more than 80% of the market is occupied by 1C, being essentially a monopolist in terms of ERP systems for small and medium-sized businesses.

The future of ERP systems

Since the 90s of the last century, the ERP systems market has been actively developing, as the number of organizations that have implemented ERP systems to optimize key business processes and improve data visibility has been growing like an avalanche.

At the same time, the costs of implementing ERP systems grew, and it was not so much about the cost of hardware or software, but about the costs of implementing and developing systems in the face of constantly expanding markets and changing processes. As a result, "traditional" systems, due to their high cost, have simply become inaccessible to small and medium-sized businesses.

The situation has changed with the advent of cloud technologies and the development of SaaS ( Software as a service). Already, all market leaders are offering the opportunity to start using their key products by subscription.

The main advantages that this approach gives:

  • Scalability - you can purchase additional functions as your business grows without the need for implementation new system;
  • SaaS solutions, due to their specificity, provide access to the ERP system via the Internet anywhere and at any time;
  • Low capital costs - there is no need to buy equipment, accompanying software, there are no large one-time payments for the implementation of the system;
  • The system is maintenance-free - the vendor takes over the tasks of updating the system, and performs troubleshooting, thereby reducing downtime.

A significant disadvantage of SaaS is the impossibility of finalizing the solution for the requirements of a particular enterprise and a number of other restrictions, so some large enterprises opt for "Hybrid" ERP systems, which offer the ability to combine traditional system ownership and subscription. With this scheme, some of the subsystems are located in the cloud (and access to them is offered by subscription), and some are on the customer's servers.

It can be predicted that this market will only develop, moreover, systems that are distributed only by SaaS and do not have a "traditional" option for deploying on the site of the customer company began to appear on the market en masse.

Another clear trend is the widespread adoption of mobile access to systems. Access implemented different ways, some ERP systems support integration with their own mobile apps developed for iOS and Android, some offer web browser access. However, such access today is always a compromise between the restrictions imposed by mobile interfaces, security requirements and the functionality expected by the client.

You can be sure that in the future, the possibilities of remote access to data will expand and new products for remote work will appear on the market, both from market leaders and newcomers.

Another direction of development, for which the new term "ERP 2.0" was even invented, is the implementation social interactions in system. The "social" ERP system allows you to effectively use social networks, closely interacting with Facebook and Twitter, implements new communication channels, helps to increase customer loyalty and, as a result, increase conversion in the sale of goods and services.

Outcomes

It is possible to say for sure that today there is a rapid development and change in the ERP systems market. Thanks to the development of cloud technologies, ERP systems have become

are available to companies of any size, and now even a small business, by subscribing, can start using a "heavy" ERP system, the implementation of which in a company in a more traditional way would have been impossible.

As a result of the widespread introduction of new technologies, the modern user makes more and more stringent requirements for the capabilities of the ERP system in terms of remote work. Therefore, in the near future, we can expect the appearance on the market of products that will not differ in terms of functionality and security, no matter whether the user will work remotely or from the office.

All these changes are beneficial to the end user of ERP systems and will certainly lead to an even greater increase in the market share occupied by EPR systems, making them familiar tools for companies of any industry and of any size.

ERP system (Enterprise Resource Planning) Is a company resource management system. Read on how to choose it, what are its advantages and disadvantages, how much it costs and what to consider for a successful implementation.

What is an ERP system and why is it needed

ERP system stands for Enterprise Resource Planning. ERP system in simple words Is a company resource management system. They are usually implemented on large enterprises with a complex production, an extensive branch network, a large assortment of products, an increased volume of warehouse operations. Their main advantage is that they allow you to combine several tasks: you can simultaneously take into account and plan cash as well as track their movement; and evaluate labor productivity at the enterprise. In addition, all processes become transparent.

ERP provides:

  1. Combining all business processes according to uniform rules within one system;
  2. Prompt receipt by the management of information about all aspects of the enterprise's activities;
  3. Planning and control of the organization's activities (short-term and long-term plans of various departments are linked to each other).

As a result, the efficiency of business management and its competitiveness are increased.

The ERP system is also convenient in that it can be implemented in parts (modules), automating, for example, first production, and then work with personnel. The set of modules covers all areas of activity, which allows you to automate almost all business processes.

The experience of enterprises that have been successfully implemented shows that as a result, warehouse stocks decrease (by 21.5% on average), labor productivity increases (by 17.5%), and the number of orders completed on time (by 14.5%) increases. In addition, the investment attractiveness of the business increases, especially for foreign investors who always want it to be transparent.

Pros and cons of an ERP system

Resource management systems have two major drawbacks: they tend to be expensive and time-consuming to implement.

The expenses should be viewed by the company's management as a strategic investment that will bring additional profits far from immediately. Payback usually comes only after a few years.

The high cost consists of several components:

  • the price of one license, that is, in fact, the price of one workplace, ranges from $ 1,500 to $ 8,000;
  • price per consulting services, implementation and maintenance ranges from 100-500% of the cost;
  • the price of user training is from $ 1000 per week.

The long and difficult implementation of ERP is, as a rule, due to the need for a serious revision of the company's work. It cannot be implemented in an enterprise where business processes are not debugged (see also about). That is why a preliminary independent research of the enterprise by a consulting company is required. This will allow you to understand whether it is generally possible to implement on this enterprise any system or it is necessary to correct the business processes first. If this stage is skipped, the enterprise risks losing huge sums of money in the event of an unsuccessful or prolonged installation of the system.

If, as a result of the study, it is revealed that the organization is ready for installation (that is, all business processes are sufficiently debugged), you can start drawing up a work plan. At the same time, the management must determine which functional areas and which types of production need to be covered, which reports to prepare.

It is advisable to draw up a document "Requirements for the ERP-system" for use primarily within the enterprise. It should formalize and describe all its essential characteristics. Only after that should you start choosing.

According to statistics, only 30% of all implementations are successful, that is, the costs are paid off. However, your company has a chance to improve such disappointing statistics. For this it is necessary to take into account the experience of others. Let's talk about everything in order.

Implementation methods

There are several methods for implementing the ERP system.

  1. Phased implementation - only a few related business processes are automated. With this option, the risk of failure is relatively low.
  2. "Big Bang" - installation entirely and at once. This is a very risky option that is preferable for and relatively uncomplicated production. This method requires an intensive testing phase, as it is necessary to carefully check how error-free all business processes are automated.
  3. Deployment - putting it into operation in one area of ​​production (department, branch, etc.), and then spreading to other areas. The actual deployment at each site can be done as a phased implementation or as a “big bang”. The risk in this case is usually insignificant (unless you overdo it with "big bangs").

It is necessary to carefully analyze which of the indicated ERP implementation methods is most optimal for your company (take into account the costs and experience of other companies), and only then proceed to the choice.

Choosing an ERP system

Today in the Russian market there are several automated enterprise management systems of both Western and domestic manufacturers. Which ERP is better - Western or domestic? Opinions on this issue are highly controversial. Let's highlight the strengths and weaknesses of both options.

Undoubtedly, strong point Western platforms is a clearly prescribed sequence of actions for production planning... The main drawback is the need for revision taking into account national characteristics. For example, for accounting and reporting in accordance with Russian rules you have to modify the settings of the "Finance" module.

Besides, Russian enterprises, on which the release of products is carried out according to design and technological documentation(for example, machine-building and instrument-making plants) are obliged to use the ESKD standards ( one system design documentation) and ESTD (Unified System of Technological Documentation). Western automated systems these standards do not support management. Therefore, improvements are needed at the software level. It requires additional costs which should be considered in advance.

Russian systems and their implementation are much cheaper than Western ones. And, of course, Russian specialists take into account Russian specifics.

When choosing an integrator - a company that carries out the installation, two factors must be taken into account: his competence and experience in automating enterprises in similar industries or specific business processes. You should also pay attention to what professional services the integrator provides (consulting, business process optimization, project management, performance evaluation, personnel training

Installation costs

When forming the preliminary project budget, it is necessary to take into account that the costs include not only the cost of the program itself (shell, user licenses, etc.) and the services of a system integrator. The estimate will also include the cost of setting up, taking into account the existing business processes, the cost of user training services (and for large companies, also a training center and support services), the cost of buying or renting additional equipment, as well as the possible costs of hiring third-party consultants. And, finally, it is worth considering the costs of the motivational part (including deductions) of the project participants.

Possible excess of the budget should be included in the project budget. Both customers and representatives of consulting companies, as a rule, consider it quite normal if the actual costs exceeded the planned by 10-15 percent, but in practice, these discrepancies are greater.

When installing ERP, companies are faced with the necessary, but sometimes unexpected costs for them. For many, this is the cost of training personnel, which is often comparable to the cost of the system. However, workers almost always have to master new complex processes, and not just another program interface, which increases the cost.

Another surprise may lie in wait for the enterprise when checking the connections between modules and other programs. In organizations, as a rule, they already work software packages on procurement, production planning, bar coding, and so on. If additional configuration of the ERP system is required to ensure compatibility with these programs, a sharp increase in the cost of integrating, testing and maintaining the software is inevitable.

Consultant fees are also a significant cost item, but to avoid unexpectedly high costs, the consultant's contract must clearly specify the responsibilities of the consultant.

Reasons for the unsuccessful implementation of ERP systems

In order to save money, many enterprises rely only on their own informatization service or hire outside specialists for temporary work, trying to save money on the services of consultants. Alas, this often leads to the fact that the work is delayed for several years, and the company loses time and resources. The fact is that the introduction of resource management systems presupposes the reorganization of all business processes, and this task is often too difficult for internal and external specialists.

However, if the company's management decides to completely entrust the ERP installation to a system integrator, another error is possible. All functions are transferred to consultants. The specialists themselves take a detached position - they say, they will do it, and we will see. But even the most qualified consultants cannot see and know the whole state of affairs in the company; moreover, it is the personnel of the enterprise who will eventually have to work with the system. The success of the project is equally dependent on the consultants and on the company itself. Therefore, it is better when both parties are responsible for the results.

Problems can arise if a large organization installs the entire system (the "big bang" method). Experience shows that failure in this case is almost guaranteed. A drastic change in operating principles is stressful for the entire enterprise, so the process should never be artificially accelerated. Staff must gradually get used to the changes that ERP is making. Therefore, it is more correct to choose the phased implementation or deployment methods first.

You need to be prepared for employee resistance. This is one of the main challenges faced by management. It is due to the fact that for a long time employees have a lot of worries. In addition, their mistakes, thanks to innovations, become noticeable to all participants in business processes and, above all, to the management (see. ).

And the last thing - after installation, do not expect a quick and "wonderful" transformation of the company. As we have already noted, the effect of ERP implementation is a matter of time. The main positive result at the first stage of the system operation is that it will force you to debug and improve all business processes. And this is already a lot.

User support and motivation

It is worth dwelling separately on two important aspects automation: training and user support, as well as motivation. It is logical to train the implementation team to work with the new IT system, first of all, and then organize a user training center (if the company is large) or hold a series of face-to-face meetings if there are not so many employees. You can also teach remotely, using webinars, recorded courses and other opportunities.

After the implementation has taken place, you need to provide users with a constantly updated library of instructions, for example, on the corporate portal.

You also need to remember about motivation. The implementation of any ERP system requires enormous labor costs from the participants, therefore unmotivated personnel, including those in ordinary positions, will significantly increase staff turnover.

An ERP system is a unified data warehouse that contains all corporate business information, and which provides simultaneous access to this information for all employees of the enterprise, who are authorized to do so. Changing the data of the system occurs through its functions.

ERP system consists of the following elements:

  • a model for managing IT flows in the company;
  • hardware and technical base and means of communication;
  • software products that automate the management of IT flows;
  • regulations for the use and development of software products;
  • IT department.

Functions of ERP systems and the issues they solve:

  • maintaining specifications that determine the composition of manufactured products, as well as the material resources required for their manufacture;
  • formation of production and sales plans;
  • planning the requirements for materials and components, volumes and delivery times;
  • inventory and procurement management (implementation of centralized procurement, contract management, inventory accounting and optimization);
  • production planning from detailed planning to the use of equipment and machines;
  • operational management finance, which includes drawing up a financial plan, as well as monitoring its implementation, management and financial accounting;
  • project management, which includes planning resources and stages.