Malaysia of ERP is renowned for its success in designing, developing and deploying of ERP systems. The entire concept of ERP has been conceived from a need to streamline internal processes and to reduce the overall costs of business. Since its inception, the industry has witnessed various changes and improvements and ERP solutions have become much more flexible and adaptable. Today, there are many ERP solutions available and they have the potential to transform your business in a very short time. With this huge market requiring many applications in a single system, organizations have been looking out for ways to design and implement an ERP system which will work for their organization. To this end, most organizations in Malaysia of ERP system design and develop their own solutions.
This article looks at the working of ERP system in Malaysia. There are two types of ERP, namely enterprise resource planning orERP and management resource planning or MPP. An ERP system is designed to organize the processes of the business. In other words, it is a tool that administers and controls the flow of information that involves all the different departments of the organization. For instance, in the process of buying a car, you would require the information of the different departments to make the right decision.
In order to design an ERP system, the organization needs to decide the processes and the procedures that will be implemented within the company. It is after this that the organization comes up with a list of requirements. These requirements will provide the framework on which the system will be developed. After the framework is ready, the next step is to define the architecture of the ERP. As per the needs and the working structure of the organization, a solution structure is designed.
In the process of designing the ERP system, the functional or tactical processes are mapped out. The next task is to map out the technical processes that will be implemented. Next comes the process of defining the business logic or the business process. This is done after considering the requirement defined earlier by the functional and tactical processes. The technical process defines the application logic and the interface of the software to the database and external service providers.
Once the IT system design is complete, the software is then developed. Functional and tactical processes are integrated with each other to make an ERP software system. The software is then tested using the integration tests to ensure its robustness and suitability for the particular organization. When the system is ready, it is used to implement the ERP in the organization. The whole system is tested internally before it is exported to third party applications.
One of the challenges organizations face when designing the ERP is the process of integration of the modules. There are many ways of integrating the modules of the system. The first and the most common way is to use the integration process that entails the use of the integrated software from all the modules. This method has the limitation of affecting the order of upgrading the modules.
Another way of integrating the modules is to use the master process where only a single instance of the software from a certain module is implemented at any given time. This is a cumbersome process and the whole design of the ERP system may have to be changed. In case of the design of the complete ERP system, the entire design of the ERP is tested prior to its release to ensure its robustness.
When designing the ERP system, proper consideration should be given to the cost effectiveness of the design. Since the design may take many months to complete and the software implementation can also be delayed for several months it is important to design a system that is not only less costly but also less time-consuming. This can be achieved by utilizing the process of one-off purchase of the components and by developing a streamlined supply chain for the software.