Erp Implementation

ERP (Enterprise Resource Planning) implementation can be defined as the installation of a software package that integrates all data and processes of an organization into a unified system. These software are cross functional and enterprise wide system that handles manufacturing, HR management, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation, etc for an organization.

The intricacies of ERP implementation

Owing to the wide scope of application within a business, the ERP software systems are a bit complex in nature and usually impose some changes on the work culture of the employees. Implementing ERP software generally requires specialized knowledge and hence it is more cost effective (even for smaller projects) if specialized ERP implementation consultants are employed.

The time needed for implementation depends on the size of the business, the scope of the change and the willingness of the customer to take ownership of the project. To implement the ERP system, the companies often resort to an ERP vendor or third party consulting companies. These firms generally provide three professional services - consulting, customization and support. The most important aspect of ERP implementation is that the purchasing company usurps the ownership of the ERP project.

The implementation process

The initial ERP implementation is done by the consulting team who are also responsible for the subsequent delivery of work to tailor the system beyond “go-live”. The tailoring process entails the additional product training, creation of process triggers and workflow; specialist advice to improve the use of ERP in the business; system optimization; assistance writing reports, complex data extracts or implementing Business Intelligence. The consulting team is also responsible for planning and jointly testing the implementation. In large ERP projects, there are three levels - system, architecture, business process consulting and technical consulting.

The customization phase can be defined as the process of extending or changing the working pattern of the system by penning new user interface and underlying application codes. Customization generally implies individualistic work practice that is not included in the core routine of ERP software and hence is often very expensive and complicated.

On the completion of the implementation process, the consulting companies enter into a support agreement so that they can assist your staff to ensure the optimal running of the ERP software. A maintenance agreement provides you rights to all current version patches, minor and major releases and often allows your employees to raise support calls.

However, while undergoing ERP implementation it is important to remember certain points. It is essential to have in-house technical expertise because ERP software in the organization implies complicated computer networking and its security, Internet connection line and its support system, etc. Moreover, there should be one dedicated ERP administrator to handle new users, set up security roles for them, modify reports, making customs reports, set up printers, etc. It is also better to expect certain number of software related problems as the IT industry is not much matured yet and hence it is wise to be patient with the consultant who is trying to fix it. Also, do trust your consultant and do not over negotiate.

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