Erp Implementation

Enterprise resource planning (ERP) can be defined as the method to integrate all the data and process of an organization into a unified system and a detailed ERP planning is very essential before putting the entire system into use. In today’s world, ERP system is used for all types and sizes of organization and it caters to a wide range of function like Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions.

The pre-requisites of ERP planning

Ideally, ERP planning should be based on the best information provided by the business. This is because if the information is not accurate then it is not reflective of the true state of the business and as a result, the ERP interpretation of the system required is wrong, too.

One of the most crucial aspects of ERP planning is the SOP i.e. Sales and Operation Plan. Business planning processes should formulate the operational plan (for each unit of the organization), keeping an eye on the financial plan. The operational plan thus used to operate the business is known as SOP. The SOP is crucial to the business because from this, the production scheduling begins and every other aspect of business like marketing, recruitment, etc depends on it. The language of the SOP should not be ambiguous and it must use a common reference point.

To draw up a correct ERP implementation plan, it is essential to consider the speed of the project, the duration, the scope and the objective. Speed is important as it can affect the finance of the project. Another thing that is to be taken into consideration is a variety of popular information systems that can affect the pace of the project. One more issue is the likelihood of changing technology that can affect reaction time, adaptability, speed and dependability of the team's performance in doing their jobs as ERP implementers. It is also important to take note of various innovations that evolve from software applications. These advancements maybe very vital in future ERP system management and can be essential tools in the future.

Necessity of ERP planning

ERP planning is as much vital as the final implementation because worldwide studies show that only 30% of the attempts to implement ERP meet with success. Moreover, there is huge cost involved in the implementation process and hence it is wise to draw up an accurate plan prior to execution. In order to obtain a successful ERP system project, it is imperative to carefully plan the type and approach of ERP implementation. Everything about implementation has to be considered, as one needs to be ready to solve any problem that comes in the way.

However, though ERP planning is very essential, ERP implementation happens to be the most crucial part in the system. Implementation is actually an after thought produced by flawless planning and preparation by a team of professionals who aims to accomplish the smooth accumulation of data and systems of a concern in order to produce a unified system for easier and streamlined access of information, products and services. Thus, the complexities of ERP system can be simplified through meticulous planning and smooth execution of the software package during implementation.