ERP is a business management software which work on a variety of computer hardware and network configuration with the help of a management portal or dashboard and a transaction database as an information repository. ERP reveals about an integrated information of core business processes and activities such as material requirement planning,manufacturing,product planning,service delivery,marketing,sales,shipping and payment. It provides regular news to a business owner about business resources(cash,raw materials,production capacity etc) and cherish the prestige of business commitments(several orders,payroll, etc).It tends to automate many back-office functions related to technology,services and human resource.
ERP enriches the enterprise with an error-less information flow among the different business sectors and manages connection to customer and other outside stakeholders.
In 2000, ERP was coined, which is proved to be more forward and covers more activities than the previous ERP, e.g decision making, stakeholders relationship, standardization, transparency, globalization etc.
An ERP is individually designed, framed and purchased. It is based on what best meets the specific needs and technical capabilities of organisation.This was all about configuration of ERP which is quite easier than its implementation.
Implementation time depends on several factors like; how big is the enterprise, How complex and perplex are the business processes, How many favorable places are empty in wait of ERP, What is the probability of process changes and the readiness of clients to take ownership for the project. Customization is exceptionally important because it can increase implementation time to a large extent.
Lets have some discussion on:ARE YOU READY TO IMPLEMENT ERP?
Does the ERP configured balances to a great extent the way the organisation wants the system to work with the way it was framed to work and can fulfill the desires of company and make its operations super fast? For making an ERP, first define your goal with a proper understanding about the activities of different sectors, specific needs,problems and challenges of the organisation. For this consultant with a proper figure of organisation is required by rule, Since poor understanding might be a big cause of ERP failure.
Do you have a well defined ERP blue print? To get with the complete and sharp business blue print is the first element for and ERP implementation. Business blue print provides a long vision to the entrepreneur and defines the standard of different business processes at different time. It gives clear idea about the structural and functional configuration of the software.
Does your ERP covers maximum processes of enterprise? Mostly ERP vendors provide a fine technical implementation plan but they generally account only for 30-40% of total project processes. It needs to add internal and non-technical activity too, such as infrastructure upgrades, organisational change management, business process testing, business blue print, data migration and other significant roles which are not the part of the vendors plan.
Is your men ready to learn the complex ERP system? From a survey we found that approx 40% of the ERP failed because of improper training for the system. The challenge here is to understand the complex integration of one process to another and so on. In the single line of operation the dependency is worsen. Like one department can not proceed until and unless it is done with the superior department. To accomplish this successfully the employees have to be not only trained for his process workings but also the interrelated processes functioning, the co-ordination and communication is the key. In first few months the ERP vendors must get rid of the system muddles.
If your answer is YES to the above questions then surely you are ready for your ERP implementation but if NO for any of them, then there is necessity of rethinking, re-planning and re-building.