Six ERP core management ideas

Source: Internet
Author: User
ERP Gartner Group Inc .) first proposed in the early 1990s S, the explanation was based on the development of computer technology and supply chain management, to deduce the development trends and changes of various manufacturing industries in the Information Age Management Information System. With the deepening of people's understanding, ERP has been given a deeper connotation. It emphasizes supply chain management. In addition to the manufacturing, finance, and sales functions of traditional mrpⅱ systems, it also provides functions such as distribution management, human resource management, transportation management, warehouse management, quality management, equipment management, and decision-making support. It supports group, cross-region, and cross-border operations, its main purpose is to fully allocate and balance all aspects of the enterprise's resources, so that enterprises can fully exert sufficient capabilities in the fierce market competition, so as to achieve better economic benefits. In fact, for enterprises, ERP should first be a management philosophy, followed by management means and information systems. The management ideology is the soul of ERP, and it is impossible to implement and apply ERP systems well without a correct understanding of ERP management ideology. So what is the management connotation of ERP? What aspects of its advanced management philosophy are embodied in? Helping enterprises achieve System Innovation The new management mechanism must quickly improve work efficiency and reduce labor costs. ERP helps enterprises realize system innovation. It helps enterprises establish a new management system. It is characterized by mutual supervision and mutual promotion among enterprises, it also ensures that every employee can consciously exert his/her full potential to work, so that the compensation of each employee is closely linked with his/her labor achievements, and the management will not experience dictatorship. ERP As an advanced management ideology and means, it not only changes a person's personal behaviors or organizational actions on the surface, but also removes the old ideas of managers from the mind, inject new ideas. "People-oriented" Competition Mechanism In recent years, many enterprises have mentioned the "people-oriented" management philosophy. The ERP management thought that the premise of "people-oriented" is that a competition mechanism must be established within the enterprise. It is not enough to rely solely on employees' consciousness and professional ethics. Therefore, we should first establish a competition mechanism within the enterprise. On this basis, we should develop a work evaluation standard for each employee and use it as a reward standard for the employee, so that every employee must meet this standard and constantly surpass this standard, and the farther and farther the better. As standards continue to increase, production efficiency will inevitably increase. In this way, the "people-oriented" management method will not become an empty dogma. Think of organizations as a social system ERP He absorbed the Management Thought of banard, the founder of the social system school in the western modern management theory. He regarded the organization as a social system, which requires cooperation between people. In the management ideology of ERP, organization is a collaborative system, which applies the modern enterprise management ideology of ERP, and integrates communication and network technologies, an effective information exchange and communication system is established within the Organization. This system ensures that the superiors can keep abreast of the situation and obtain accurate information as the basis for decision-making, it can also ensure the smooth release and execution of commands. The establishment and maintenance of such an information exchange system is the primary condition for the existence and development of an organization, and the effectiveness and efficiency of the Organization can be discussed later. When using this system, you should also pay attention to the integrity of the information exchange system. Taking "Supply Chain Management" as the core ERP Based on mrpⅱ, and beyond mrpⅱ. The ERP system expands the management scope on the basis of mrp ii. It integrates customer requirements with the manufacturing activities within the enterprise and the manufacturing resources of suppliers to form a complete supply chain (SCM ), and effectively manage all the links in the supply chain, thus forming an ERP management system with the supply chain as the core. The supply chain spans departments and enterprises and forms a business process centered on products or services. The SCM-centered ERP system adapts to the survival and development needs of enterprises in the Era of Knowledge Economy and fierce market competition, and brings significant benefits to relevant enterprises. SCM realizes the reorganization of social resources and business from the competition and social needs of the entire market, and greatly improves the efficiency and effectiveness of logistics and information flow operations in social and economic activities, this eliminates intermediate redundancy, reduces waste, and avoids delays. Customer Relationship Management is an important front-end support In the customer-centric market economy era, the focus of enterprises is gradually shifting from focusing on products to focusing on customers. Due to the need to focus more on customers, there are endless ideas such as relationship marketing and service marketing. At the same time, the rapid development of information technology provides powerful support for enterprises to strengthen customer relationship management. ERP After adding Customer Relationship Management Based on Supply Chain Management, the system will focus on solving the automation and process improvement of enterprise business activities, especially in front-end areas that directly deal with customers, such as sales, marketing, customer service and support. Customer Relationship Management (CRM) helps enterprises make the best use of customer-centric resources (including human resources, tangible and intangible assets ), these resources are also applied to existing and potential customers. The goal is to shorten the sales cycle and reduce the sales cost, and seek to expand the new market and new channels required by the business, it also improves enterprise management by improving customer value, customer satisfaction, profitability, and customer loyalty. Implement e-commerce and fully integrate internal and external resources of the Enterprise With the rapid development of network technology and the emergence of electronic enterprise management ideas, ERP is also constantly adjusted to adapt to the advent of the e-commerce era. In the Internet era, ERP will adapt enterprises to the changes in management models caused by global competition. It adopts the latest information technology, it features digitalization, networking, integration, intelligence, flexibility, industry orientation, and localization. In the E-commerce era, ERP will focus on how to help enterprises adjust their management models and how to provide enterprises with e-commerce solutions to meet the arrival of the digital knowledge economy era. It supports Agile Enterprise Organization (Dynamic Alliance), enterprise management (Team-centered flat organizational structure), and work (parallel engineering and collaborative work ), enterprises, users, suppliers, and other functional organizations involved in business activities are integrated through the computer network to effectively transfer and optimize information flows, logistics, and value flows, this includes the networking of enterprise internal operations, supply chain management, channel management, and customer relationship management. In the E-commerce era, ERP systems will also make full use of Internet technology and information integration technology to comprehensively integrate and optimize functions such as supply chain management, customer relationship management, and enterprise office automation, to support product collaborative commerce and other enterprise management modes. Through the above analysis, we can see that with IT technology, ERP systems can turn many advanced management ideas into computer software systems that can be applied in reality. With the continuous development of IT technology and modern management ideas, CRM came into being. The value of CRM lies in highlighting the importance of customer service and support, sales management, operation management, and other aspects, it can be regarded as part of the general ERP system. The two can form a seamless closed-loop system, which provides new opportunities for enterprises to develop in the e-commerce era.

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.