Part I …
Implementing an Enterprise Resource Planning (ERP) system is not that enough. The true story starts after that. It has been observed over the last few decades that several companies have successfully implemented their ERP software at a much accelerated pace. However, by doing so without proper planning, they actually opened gates to many issues for themselves. Foremost, poor user training and over-engineering.
It is first started with the most critical aspect of cost versus risk. The slower you implement the greater the cost goes, and fortunately, lesser the risk will be. As a matter of fact, this all depends from case to case, client to client, scenario to scenario. And its your job as a consultant to figure out what suits best.
The theory behind every ERP system is that it fundamentally involves a set of applications that functions as a group in a single information system in order to support all the basic areas of business management processes. Such system supports efficient project implementation management (for e.g. Market, supply-chain, and negotiations), Resource Planning (human resources), Financials (accounts payable, accounts receivables, general ledger), Trade and Logistics (Inventory, warehouses, purchase orders, sales orders, customer and vendor invoices) and various types of Accounting, Reporting and Results Analysis, etc.
An ERP system includes several remarkable features, which comprises of general management and financial models for organizations (mostly, of all ranges), maximum real-time processing, centralized data repository and warehousing, mission-critical database management system and integration with other software platforms. These modules are bundled up in an effective ERP, instead of separate proprietary software which is written by or for a single customer. These ERP modules can also be altered based upon companies need and requirements to suite the basic business functions. Such alterations are done through the merchandiser's or ERP provider’s proprietary tools or standard or resident programming languages. These depend heavily on the software and the platform it supports.
The implementation methodology of an ERP contains various procedures and processes, which establish the means for formulating the actual implementation of ERP software. There are numerous ways for management of the project. The ERP implementation methodology comprises of wide-ranging services from the vendors. It is very vital for the companies to examine and study each ERP implementation method, as the risk of failure in ERP implementation is inevitable and can also result in a highly expensive ordeal. Implementing an ERP system does escalate the company’s competency of commercial activities and production lines. It combines the knowledge, intuitions, experience and highest practices gathered by professionals and practitioners who are well experienced during the numerous implementation projects that have achieved worthy successful.
In the next series of blog posts, I’ll take you through my experiences as developing and understanding the insights of and actual ERP system.