For efficient implementation of ERP the organization must consider the following issues before selecting an ERP software:
&bullThe choice of ERP software and its suitability.
&bullInherent flaws in the existing business processes.
&bullWhat the benefits of ERP systems are.
&bullThe ability of the ERP system to adapt to changes in technology and business needs.
The 10 essentials of an ERP system are:
1.Understanding clearly the “whys and hows” or ERP software. To prevent disasters and business losses you must put together a team drawn from different parts of your business to understand ERP and what in your case are the most important deliverables and objectives.
2.Delineating practically the difference between the existing system and ERP process. Identify what are defined as the functional and non functional gaps in the existing and planned systems.
3.Keep the ERP system simple. Customization at stage 1 could confuse matters. Experts in ERP recommend implementing ERP in stages. So begin with a standard off the shelf software system and once the system is functional and kinks worked out then consider stage 2.
4.Implementing ERP in any company means changing mind sets across the board. It is important to “socialize” the change by teaching about ERP systems at every stage in the organization. Unless stakeholders are convinced about feasibility ERP implementation will run into troubles.
5.Implementing ERP needs a project management team and a quality/centre of excellence team. These two working in tandem will be able to manage the change and work towards stability.
6.ERP needs existing data bases so introduce business intelligent systems in your organization early so that ERP can work efficiently.
7.Know the risks and complexities of ERP systems. Find out what are the technology risks and business process risks. Insisting on testing cycles. Although this is a long drawn process it will iron out flaws and problems.
8.Audits and compliance are essentials. ERP systems are finance and accounting based and so need regulatory systems in place. So in ERP implementation you may need to consider upgrading or altering the financial systems.
9.ERP has many advantages but you need to select the software based on individual needs and business plans.
10.Get ERP expertise to help you select a workable system. Never buy software based on what a vendor has to say. Determine your needs clearly.
ERP systems have great benefits provided you implement a system that fits well with your business processes. Keys to ERP success are selection of appropriate software and stepwise implementation with troubleshooting.