Future of ERP Applications:

ERP solutions have become an essential part of companies worldwide. Most of them do work efficiently and serve the needs of the organizations. However, in view of the constantly changing business environment and the business needs, none of the existing ERP applications can be considered the single best solution that serves all needs. The long-term goal of an ERP solution is achieving seamless integration and flexibility in operations.

Any ERP solution should have the following basic elements to be considered an effective solution:

• Dynamic configuration: Configuration of an ERP solution should not be static and rigid. It is usually not a one-time solution for all current and future business problems. It should therefore be easy to reconfigure it to suit changing business needs. It cannot be predicted what customers will prefer to buy in the future and how work processes will have to be changed to meet their demands. Hence, the ERP system should have a simple business logic template that can be easily modified by the management to meet the changing customer requirements from time to time.
• Components: ERP systems generally consist of independent modules that are integrated by the vendor before they are installed in organizations. As organizations are increasingly outsourcing various functions like logistics, human resources and accounting, so as to concentrate on their core areas of competitive advantage, there is a need for ERP systems that can be seamlessly integrated with third-party service providers. ERP systems should therefore have components that can work independently when pulled apart, and can integrate with legacy systems and business partners' systems when recombined.
• Incremental improvement: The implementation of an ERP system should not be a long drawn-out process. It should enable the organization to progress steadily from one phase to another, rather than waiting for a long period to have the whole project installed.
• Managing multiple supplier relationships: Traditional ERP systems focus only on automating and integrating specified business processes. ERP systems are more effective if they are able to monitor the various processes and supplier relationships that affect the business activity, and model an ideal process to improve the efficiency of the operations.

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