All entries for May 2019

May 21, 2019

The Role of ERP in globalisation

Nowadays, more and more organisations provide products and services globally. They operate in different countries and in different locations; Also they have their manufacturing plants, regional sales offices, distribution centre, national, regional and global headquarters throughout the world. However, it brings the challenges for ERP, like legal and business principles of the country, multi-currency operations, language barrier (especially in developing countries).

The role of ERP is to use all available organisation resources efficiently. In general, it ensures flexibility of the company and creates the environment for achieving core competence of the organisations. Also, it can be identified as the critical component of corporate globalisation strategies and be required to satisfy the demands of support functionalities in a global environment- such as intercompany stock transfer, software localisation.

The survey from the Gartner Research study had identified that 70% of organisations desired to operate a single global ERP system. However, a centralised ERP solution is slow to implement in a global environment. And the company may have to change their existing IT solutions- from many to one, which requires a large amount of time. As a result, a better choice for the companies two-tier ERP solution, which means the company can use one core ERP with another solution from same vendor for subsidiaries or one core ERP with other solution from another one vendor.

Mengyun Hu (1862091)

May 10, 2019

ERP starts with Business Process: Standardization?

Business Process is a prerequisite of ERP. Standardized process is a integral part of it.

Then, there comes the perception: standardization would quite often limit the flexibility. However, Hammer and Stanton; quite oppositely, proposed standardization would enable flexibility in the way of allocating personels with less training effort. The reason for this would be explained through the controlled and uncontrolled dynamics. For the controlled dynamics, flexibility can be achieved through standardization.

To enrich the arguement, there would be another factor that impact on this. It is the learning curve of learning experience. While standardization allows un-trained employee to execute different tasks in different roles successfully (which means flexibility), the learning curve in this situation would be barely achieved. People gain experience through learning curve by doing a same task in a period of time. Unfixed and changing tasks could cause confusion for staff and inhibit the learning curve. When standardized process links with role & responsibilty, the learning curve should be considered. Process standardization, if promoting flexibility, would obmit the value of the learning curve.

Nguyen, Le Thang (1760903)

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Most recent comments

  • I agree. Few companies today can grow their business by focusing on a single domestic market. Many e… by Junhua Lin on this entry
  • Hello. Thang. I am really impressed with your ideas by using 'the learning curve' to argue against s… by Peaw (peow) Kaitwatcharachai on this entry
  • Disagree with your idea about ERP starting with standardized business process. it has be identified … by Mengyun Hu on this entry
  • It seems almost impossible to achieve absolute standardization and flexibility with the implementati… by Sandhya Ramaseshan on this entry
  • BRP also play a critical role in ERP implementation. When implementation ERP system, there are two o… by on this entry

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