What is ERP?
Enterprise resource planning (ERP) is business process software that empowers an Enterprise to manage the plethora of integrated applications related to the day-to-day process. ERP System is designed to be used by businesses and often requires dedicated teams to customize and analyze the data and to handle upgrades and deployment.
Why Organisations implement ERP?
Most organizations implement ERP systems to replace legacy software or to incorporate ERP applications, following are the reasons to implement ERP:-
- To replace in-house systems
- To replace current accounting software
- To replace other non-ERP systems / had no system
Based on what best meets the specific needs and technical capabilities of the organization, the individual ERP module can be implemented as per requirement.
How to implement a successful ERP System?
It is said, ”Well Begun is Half Done”; thus it is mandatory to have correct implementation of ERP for its Optimal Utilization. Below are the must-do steps for successful implementation of ERP system.
The very 1st step is to set the objectives clearly and the requirements should be documented. Considering the available resources, infrastructure, and technology available the key performance indicators(KPI) should be pointed out, in order to select the right ERP solution that best suits your needs. The alignment of ERP system implementation with company’s strategic goals is articulated.
ERP System Evaluation and Selection:-
This is the most critical step in the starting phase, as the exact solution will solely depend upon your specific business requirements and system preference. Having a word with your ERP consultant is highly recommended.
For smooth transitioning between two systems analyze your current data and find out what is necessary to be shifted to the new system as not all data can be transferred.
ERP transitions are as much about changing the culture as changing technology. It’s necessary to keep your employees informed about the upcoming change as it is going to affect the system as a whole and not only some parts. Change should be communicated positively to the employees as it will make things easier as an ERP can only provide optimal results when every employee accepts the change.
Technology and Knowledge Transfer:-
Most of the systems fail because of improper customization for non-optimal utilization. Use of proper technology and providing the right training are the main factors on which the success of the project will be dependent.
Testing and on-going support:-
As most of the ERP system face failure after implementations, hence your own IT team can conduct these tests to make sure there are no faults in the code, also Functional and User acceptance tests will make sure the system is implemented properly. ERP systems require timely maintenance and upgradation other than the installation for smooth working.
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