Erp Implementation

Erp Planning

An ERP Planning Overview

Erp Planning

ERP planning is a significant undertaking for companies that want to implement an erp system and derive real business benefit. Scoping and bounding the software requirements entails understanding the expectations for erp software and choosing a package that can provide a solution in accordance with the business goals and objectives. It is very easy for a company to be drawn in by glorified sales pitches of erp vendors. The ultimate reality is that unless companies understand the full functional capability and align it correctly with operational requirements, you can run the risk of implementing a costly piece of software that will never be utilized to the full extent of its capabilities.

Enterprise resource planning (erp) begins with defining critical application and business reporting requirements. Real time on demand information needs to be delivered in a format that supports business decision making. Where the erp system centralizes business processes and eliminates arduous and costly applications, the derived benefit needs to be understood right from the outset. Planning the integration requires consultation between the business units and the information technology personnel. Too often the information technology personnel understand how the software works but do not know how to integrate it for real business benefits. The planning framework needs to address this to ensure that the enterprise derives benefit down to the practical level.

Erp Planning

Cost and support considerations are also crucial to erp planning. The full lifecycle of the project entails the initial software costs, development and migration costs, support services, training and ongoing maintenance. Erp project management needs to make appropriate allowance for this. A failure to anticipate developer attrition rates and inadequate allocation to the training budget can compromise implementation. When staged implementation is involved it is essential that companies make allowance for the ongoing costs associated with the project. Pervious case studies provided by ERP vendors can be a useful framework in this regard. By understanding the areas of risk and taking appropriate measures, companies have a much greater chance of overall project success.

Enterprise resource planning (erp software) can contribute to significant cost savings and productivity improvement when implemented and utilized effectively. It is important that a company establish goals and objectives and factor them into the ERP implementation plan. Solutions should be chosen that derive real and tangible business benefits. By defining measurable objectives, a company can benchmark performance improvement and calculate the return on investment. This keeps the implementation accountable and the organization can witness how business transparency has a quantifiable effect on the organizations bottom line.

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