ERP system: the beginning of an efficient strategy for managing organizations

ERP system

The Enterprise Resource Planning (ERP) system is considered one of the vital tools in the management of organizations. This system is an efficient strategy for integrating organizational processes, information and resources that helps to improve performance, increase productivity and create coordination in organizations. In this article, we will examine the details of the ERP system and its role in managing organizations.

ERP system concept

The ERP system is a comprehensive management system that improves the control and management of organizational resources through the integration of processes and information. This system includes all parts of the organization and covers financial operations, human resource management, supply chain management, project management and other organizational activities.

ERP system goals

:ERP system for organizations pursues several goals. These goals are

4. Improved communication: ERP system improves communication and facilitates coordination between teams by providing a common platform for internal and external communication of the organization.

3. Creating coordination: By integrating processes and information, the ERP system helps to create coordination between different parts of the organization and prevents errors and interferences.

2. Improving decision-making: By accessing up-to-date and accurate information, the ERP system helps managers make better decisions and determine appropriate strategies for the organization.

1. Increasing productivity: ERP system increases the productivity of the organization and reduces additional time and costs by improving processes and automating tasks.

Advantages and disadvantages of ERP system

Advantages of ERP system:

1. Integration and coordination: ERP system facilitates improved coordination and cooperation between departments by integrating all organizational functions on a common platform. This improved coordination allows for more information to be shared and better decisions to be made.

2. Optimizing performance: ERP system increases efficiency and productivity by integrating various processes of the organization. This software is able to save a lot of time and money by automating processes and reducing access to information again.

3. Improving follow-up and control: ERP system provides more accurate and better follow-up and control. With access to comprehensive and up-to-date information, managers can easily check the performance of the organization and make appropriate decisions if needed.

Disadvantages of ERP system:

1. High cost: Usually, the implementation of an ERP system is expensive. This cost includes software purchase, system deployment and staff training. For small and medium-sized organizations, this cost can be a financial problem.

2. Complexity: The implementation and deployment of an ERP system may be complex and time-consuming. Also, the need to train employees to use the system may also bring challenges.

3. The need to change the organizational culture: using the ERP system requires changing the organizational culture. To be successful in using this system, employees must be prepared to cooperate and use the system.

History of ERP system

ERP system background
The roots of the ERP system go back to the 1960s. At that time, management systems were usually used separately for each department of the organization. For example, accounting systems, warehouse management systems, and sales systems were operated separately. This caused the information to be transferred between these systems manually and it was not possible to integrate the processes.

In 1960, Harvard Business School was one of the first companies to think of creating an integrated enterprise resource management system for organizations. This company set its goal to create a powerful and comprehensive system to manage all the processes of the organization.

In the 1970s, companies such as IBM and Oracle joined Harvard's ideas and improved their systems to integrate the organization's processes and information. However, in this era, technologies were not yet advanced enough and ERP systems were not yet fully capable of integrating processes.

In the 1990s, with the advancement of information technology and the Internet, ERP systems improved and had the ability to fully integrate processes and information. Companies such as SAP, Oracle and Microsoft Dynamics emerged as the largest and most reliable suppliers of ERP systems in this period. These systems included the ability to manage all aspects of the organization, including accounting, warehouse management, sales, human resources, and customer management.

ERP system evolution

In the 2000s, ERP systems gradually evolved and added new capabilities. For example, business intelligence capabilities were added to ERP systems that help organizations use their data and make better decisions. Also, ERP systems have expanded to use advanced technologies such as the cloud, artificial intelligence, and the Internet of Things.

In the 2010s, with the advancement of cloud technology and cloud computing, ERP systems became a way to use shared models and new strategies such as ERP systems as a service. This approach allows organizations to use the capabilities of ERP systems without the need for large investments and reduce hardware and maintenance costs.


The growth and development of the ERP system in 2011 to 2015:
In the period between 2011 and 2015, ERP systems have grown and developed significantly. At this time, major companies such as SAP, Oracle, and Microsoft Dynamics released updated versions of their ERP systems. These new versions included a variety of capabilities to improve resource management of organizations, including improved production and distribution processes, supply chain management, and greater productivity.

2015 to 2018:

Focusing on the cloud and artificial intelligence In the following years, the attention of ERP system manufacturers focused more on cloud technologies and artificial intelligence. These companies tried to provide more advanced capabilities for their ERP systems by using these technologies. Among other things, AI capabilities can help ERP systems make smarter decisions about production planning, inventory management, and the best sales strategy.


With the advancement of information technologies and the growing needs of organizations, ERP systems are still evolving and improving, and new features and capabilities will be added to them in the future.

ERP processes and developments

ERP systems include a set of key processes that are used in all departments of an organization. These processes include:
1. Sales and marketing management: includes sales processes, customer orders, distribution and marketing of products.
2. Financial management: includes financial accounting processes, budget management, financial reporting and asset management.
3. Human resource management: It includes the processes of hiring and training employees, salary management and performance management.
4. Supply chain management: includes purchasing processes, warehouse management, production and distribution of products.

To date, ERP systems have experienced a lot of evolution. They have progressed from computer-based and centralized systems within the organization to cloud-based and Internet-based systems. Also, technologies such as artificial intelligence and data analysis have been added to ERP systems, which provide more possibilities and capabilities for companies.

Current status of ERP

ERP systems are still developing and improving. With the advancement of technology and the changing needs of companies, ERP systems are improved and offer new capabilities to companies. Some of the new features of ERP systems are:
- Artificial intelligence and machine learning: the possibility of using artificial intelligence and machine learning algorithms to analyze data and predict events in ERP systems.
- Internet of Things: Connecting ERP systems with smart devices and the Internet of Things to gather information and improve processes.
- Cloud memory: using cloud-based ERP systems for easy and advanced access to information and processes.

The future of ERP

The future of ERP systems is bright and exciting. With the advancement of technologies such as artificial intelligence, Internet of Things and improved user experience, ERP systems will bring more capabilities to companies.
For example, the:

1. Artificial intelligence and machine learning: In the future, ERP systems will widely use artificial intelligence (AI) and machine learning (Machine Learning). These capabilities allow systems to provide more accurate predictions by analyzing data and automatically improve processes.

2. Internet of Things (IoT): Internet of Things technology will play an important role in ERP systems in the future. Various devices and sensors in organizations will be connected to the network and data related to performance and operations will be collected in real time. This information can help supply chain and inventory management ERP systems.

3. Advanced user interfaces: In the future, the user interfaces of ERP systems will be improved and more advanced. Through the use of technologies such as virtual and augmented reality, users can communicate with systems in more interactive and attractive environments.

4. More security: With the development of technology, concerns about the security of ERP systems have increased. In the future, more efforts will be made to ensure the security of the systems. Stronger encryption, two-factor authentication, and biometric technologies will be among the solutions used in this field.

In the future, ERP systems are likely to be accompanied by more advanced technologies. In general, changes such as increasing artificial intelligence and machine learning, improving user interfaces, using the Internet of Things (IoT) and more security in ERP systems can be predicted.

Using artificial intelligence and machine learning, ERP systems will be able to provide improvements in processes and resource management by analyzing data and making more accurate predictions. Also, IoT in ERP systems will improve supply chain and inventory management.

Advanced and more attractive user interfaces will also be used in the future. Through technologies such as virtual and augmented reality, users will be able to interact with ERP systems in more interactive and attractive environments.

Result

This system is a very powerful and efficient tool in resource management of organizations. The ERP system provides connection and coordination between all departments of the organization and makes information available to all users in an integrated manner.

One of the main advantages of the ERP system is the optimization of organizational processes. By using this system, various processes such as inventory management, production, sales and accounting are done automatically and optimally. This increases the productivity of the organization, reduces costs and time, and increases the quality of services.

In addition, the ERP system has the capability of comprehensive analysis and reporting. Using the information collected in the system, managers can make better decisions for the organization and determine appropriate strategies by analyzing data and providing detailed reports.

As a result, the ERP system, as a comprehensive and effective tool, helps organizations in the direction of growth and progress. By using this system, organizations will be able to plan and control activities better and quickly respond to market changes and customer needs.

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