ERP Impact on Organizations
ERP implementation can positively affect the process capital of a company; process capital can positively affect customer capital and customer capital ultimately affects business performance. Companies implementing ERP can build process capital to meet the challenges of the competitive market environment.
A D V E R T I S E M E N T
ERP'S impact on its stakeholders:
Impact of ERP on the role of managers or organization or stakeholders can be best studied and understood if the subject is analyzed right from the implementation stage. Nevertheless it has a strong influence on the business process
itself as soon as it is gripped and decides major issues for employees, customers and other stake holders. It is better to analyze it in this context rather than debating on "How will ERP impact the accounting Profession?"
Impact during the Implementation Process:
ERP has a significant impact right from the time it is conceived in the organization. Firstly it facilitates the members in the organization to arrive at a consensus though after a detailed and deliberate discussion. It paves way for restructuring which would not have otherwise happened in organizations sticking to traditional and conventional values. ERP is an eye-opener for such organizations because they get to realize the nuances and edge involved in modifying the business process. This would not have happened but for the intervention of ERP. Organizations disclose vital information in the public domain which was otherwise considered confidential and not meant for dissemination. All this happens in the implementation process as this it is the time the seeds sown (FOR ERP Intervention) gets shaped in this phase. Nevertheless the impact of ERP on managers is noteworthy.
Impact on Departments:
It brings about interactions and tends to nurture healthy relationships among departments in organizations which would have otherwise remained isolated. The problems of coordinations faced by each department are made known to the company. They can arrive at a better means of doing things on such group discussions. It is therefore necessary to study the impact of ERP on all departments rather than restrict it to issues like "How will ERP impact the accounting profession"?
Impact on the organization as a whole:
The ERP consultant will able to identify the flaws and guide the organization in devising better procedures. It helps organizations to adapt and adjust to change right from the implementation process.
Impact on Employment:
It throws job opportunities to many individuals, whom the organizations hire at the implementation process. They even realize the need to retain them on permanent rolls once ERP goes full-fledged in the organization. The good news is that it gives another room of employment for the existing IT professionals in the country. They were able to update themselves on ERP modules and continue serving the organization in terms of enhancing user interface with ERP applications.
Impact on the nature of Job and information access:
ERP has directly and indirectly helped to redefine functions in the organization. Anything that people wanted to know about the company was available by a click of the mouse. There was no more relying on the department of internal communications even for single information. Outsiders don't have the hassle of obtaining permission and following stringent procedures to access information. IT has helped vastly and so it is not necessary to ask exclusive questions like "How will ERP impact the accounting Profession"?
Impact on the individual employees:
ERP provided more freedom, authority and responsibility to the individual employees which were mutually beneficial to the management. Each employee became more aware of his/her function while ERP has given the confidence to execute it individually and successfully Above all it resulted in transparency and accountability. The tasks of employees became totally independent as ERP succeeded in doing away the need of exclusive interdepartmental dependence in order to elicit information. This has resulted in easing the process of handling and answering customer queries and undertaking clientele orders.
A one phrase explanation for the impact of ERP would be "Simplifying Complex Process". One has to have an idea of the above issues which will help in understanding the impact of ERP on the role of managers.