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Roles and Responsibilities of ERP Software in an Organization

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Roles and Responsibilities

Many organizations now recognize the importance of Enterprise Resource Planning (ERP) in a fast-changing work environment. Implementation. ERP software solutions are built to integrate the data and functionalities of an enterprise into a unified system. Understanding the role of ERP and how it improves your business will aid your decision-making process for organizational change. 

It is also essential for organizations to understand that they play a significant role in ensuring that the ERP runs successfully. Therefore, not filling the right people in critical positions during ERP implementation and system integration is a necessity. Failure to do this can have adverse effects like project delays, business disruptions, and budget overruns. 

What Is Enterprise Resource Planning?

ERP is a software solution that manages, automates, and integrates various business processes in an organization. ERP systems maintain a database for all operational and financial information and make these easily accessible across the company, allowing accurate planning. 

When starting with ERPs, choosing a new system for your business may be challenging. There are many popular systems like SAP, Oracle, Sage, NetSuite ERP, Microsoft Dynamics. Some are best suited for medium to large businesses, while others work well for smaller businesses. It is best to meet with ERP vendors to discuss pricing, and your business needs to choose the best solution for your company.  

ERP modules are add-ons that focus on one business area and customize business solutions for them, thereby connecting different departments into one system. Standard modules support human resources, supply chain management, customer relationship management (CRM), inventory management, manufacturing, warehouse management systems, workforce management, and finance. 

How Does an ERP System Work?

An ERP system streamlines the resources required to run the business and still maintain profitability efficiently. It brings together various business processes and connects everyone to a single database, ensuring that information is readily available.

The system collates data from the various departments into a central location where all employees can access it. With this centralized database, team members do not work in silos and are assured of the accuracy of the data.  

What Is the Role of ERP?

The main goal of ERP is to support a company and ensure its resources are managed cost-effectively. ERP is a valuable tool that improves the efficiency of organizations and helps in tracking and managing essential aspects of a business. 

An ERP is tailored to meet business functions and provides numerous benefits to different aspects of the business. It covers accounting, sales, inventory management, manufacturing, etc., and enhances the flow of information between the respective departments. The ERP software ensures that data is shared in real-time and passes relevant information on financials and operations to outside stakeholders.

What Are the Roles of ERP in the Business Processes of the Enterprise Company?

There’s a point in a growing business when spreadsheets are no longer sufficient; that’s when enterprise resource planning comes in.¬† ERP software provides business process management for companies by combining many elements into a single unit.¬† It works for enterprises by reducing cost and efficiency without compromising the standards of your products and services.¬†

ERP is used by many organizations in different industries, including supply chain, healthcare, non-profit, and manufacturing. While implementing new software solutions may be a massive change for your business, it is not without benefits.

Roles and Responsibilities of ERP Consultants

ERP consultants manage ERP for organizations; they determine their clients’ needs and develop ERP software solutions that meet all business functions. They are crucial to the success of every ERP implementation. They identify the strengths and weaknesses of the ERP and provide recommendations for improvements.¬†¬†

The consultants help simplify business processes, increase productivity, and train employees. They are required to have excellent communication, leadership, and organizational skills. They are also highly skilled in technical tools like Oracle and SAP.

The following are the roles and responsibilities of Enterprise Resource Planning Consultants:

  • Examine current information technology infrastructure and recommend improvements for the existing system.¬†
  • Provide technical support for the information systems.¬†
  • Perform business process analysis and determine client’s ERP needs.
  • Develop customized ERP solutions and ensure their efficiency.
  • Train end-users on specific ERP modules and provide technical support.
  • Educate employees on the effective ways to utilize the software.
  • Document¬†
  • Assist teams with change management.
  • Ensure seamless integration of solutions.

The Role of ERP in System Integration

System integration connects all the IT systems and applications of an enterprise, so they work as a single unit. A system integrator facilitates this integration by linking a business’s software and hardware components and ensuring they work together seamlessly.¬†

ERP integration synchronizes the ERP software to other systems. It is how your ERP’s centralization and cross-functional collaboration are achieved by connecting it to external software. The integration can be thought of as a hub where you link all your other software.¬†

Some of the systems connected by ERP integration include:

  • eCommerce platforms
  • Business intelligence
  • Electronic data exchange (EDI)
  • Project management software
  • Marketing tools
  • Customer Relationship Management (CRM)
  • Inventory and Warehouse Management

What Type of ERP Systems Can You Integrate?

  • Cloud ERP: It hosts your information systems on a third party’s cloud computing platform rather than the company’s server room. The cloud provider manages, maintains, and updates the server, giving you more flexibility and time. This model enables mobile accessibility, allowing enterprises to use their applications anywhere from any device. However, internet access is needed for this type of ERP software.
  • On-Premise ERP: On-premise ERP is installed within an organization’s environment with no involvement from third parties. Once purchased, it is totally in your hands and gives you more control of your data. But you will have to incur additional expenses for all training and ongoing maintenance costs.

Critical Supporting Roles on Digital Transformation and ERP Implementation

The success of ERP implementation and digital transformation, like every other project, depends on the people’s abilities. Getting a team structure with the relevant skills and clearly defined roles and responsibilities is crucial while implementing the ERP project.¬†

The methodology of an ERP implementation depends on the size of the business, the project’s complexity, and the type of ERP solution. Hence, the project needs the most experienced hands. 

The table below shows the roles needed on our ERP project team and their responsibilities. 

Roles

Responsibilities 

The Steering Committee

The committee is the project lead and comprises senior management. They handle the critical components of the project and will be responsible for the following:

  • choosing the vendor,
  • defining the metrics for success,
  • monitoring project implementation,
  • setting up the project management team and structure of the project,
  • developing the project plan and setting a timeframe for completion.

Project Management Team

The team is made of a blend of people with different skillsets and a proven record to focus on the implementation project will ensure success. The project management team handles the following responsibilities:

  • resolving all issues from employees and vendors,
  • document project progress and report to the steering committee,
  • managing the scope, budget, and schedules of the project,
  • gathering requirements and documenting business processes.¬†

Subject Matter Experts

When subject matter experts are involved in the project, the more successful it will be. Though involving too many people may cause delays, getting buy-in and ownership from the frontlines is critical. Their responsibilities include:

  • evaluating the system,
  • playing a significant role in the design and setup of the new system,
  • reviewing the documents given to vendors for the detailed demonstration.

Human Resources Department

This role is commonly underrated in ERP implementation; they are essential in handling the people side of the implementation.

 

There are many other roles, but this project team structure forms the core of every implementation. The project has a high chance of success if these roles are filled and the team members utilize their experience fully.

Why Is an ERP System Important for Your Business?

ERPs manage and improve different areas of a business. ERP enables business process improvements for your enterprise in the following ways:

  • Enhances Productivity: The growth of your business can be stalled by inefficient spreadsheets and manual workflow, which takes hours to complete. An ERP system enables the automation of these tedious tasks. It eliminates inefficiencies allowing employees to focus on more thoughtful work, thus increasing productivity.¬†
  • Improves Customer Experience: Improving user experience is a priority for every business. The customer relationship management tool of ERP helps achieve this. It enables your team to access details about your customers, including contact information, purchase orders, and billing information. This gives you a better understanding of your end-users and helps you develop strategies to serve them better.
  • Reduces Cost: ERP packages are a worthy investment that saves your organization a ton of money in the long run. With an ERP, many businesses can grow without the need for more staff or extra IT costs.¬†¬†
  • Increases Data Security: In this digital era, enterprises must invest in their security system to prevent all forms of fraud. Advances in information systems make it possible to host your ERP applications in a secure cloud. Using cloud ERPs minimizes your risk, increases your visibility, and grants you access to the full capabilities of your system.
  • Enables Business Growth: The right ERP solution will reduce inefficiencies and wasted resources, enabling your business to thrive. Also, the excellent business intelligence tool storing all data in a single entity helps team members generate reports quickly. This provides the functional areas of the organization, translating into business growth.¬†

The Bottom Line

To build a profitable and sustainable business, you need to incorporate the right tools to boost productivity and profitability. ERP software solutions can bring the efficiencies required to your company’s processes, but it is also essential to properly execute your role as a business for a successful outcome. Therefore, business leaders and ERP consultants have to collaborate to ensure a smooth ERP implementation process.