Erp Implementation

Erp Solutions

Factors To Consider When Choosing An ERP Solution

Erp Solutions

ERP solutions need to fit within the context of a companies operational needs and objectives. By defining the business outcome in real measurable terms, companies can establish key performance indicators to benchmark performance. The integration of an erp system increases business intelligence by improving operational transparency. When productivity increases, capital costs are reduced and a company can quantify the return on investment derived from the project implementation. Choosing an erp solution entails several considerations. A brief discussion of pertinent issues is outlined below.

Marrying the solution to the business and technical needs of the organization can be a challenging task. The project committee should comprise responsible members of the business units and information technology division. When assessing vendor solutions, it is necessary to consider business objectives and the existing and future technical requirements. A balanced team can help assist with the selection process. For the most part, vendor solutions are the usual considered outcome. Whether the company selects a complete enterprise wide package or opts for a modular approach are some of the issues that need to be raised and addressed. In some limited case, if a company has unique requirements, building the erp system solution from the 'ground up' may be a superior approach.

Erp Solutions

Architecture, Software and system dependency are some of the essential considerations that ERP stakeholders must address. With typical epr projects taking anywhere from 6 to 18 months to implement, there are always trade offs between implementation time and budget. The degree of in-house expertise also factors into the equation. With software costs comprising one quarter of the total project costs, erp vendors often make more money form support and consulting services than they do the software itself. With training and ongoing support an important necessity, the company must be confident that the solution allows for the establishment of an ongoing support network to derive the full benefit of the initiative.

Companies are structured differently and have unique company cultures. No one solution serves the needs of all organizations. An integrated erp system solution can comprise manufacturing, supply chain management, financials, human resources, customer relationship management and data warehousing. The company must consider what components it requires and choose the solution that provides functional best fit without compromising existing company processes.

ERP solutions requires a balanced scorecard approach. By defining a companies goals and objectives and implementing a well designed project plan, organizations can reap superior return on investment. It is wise to compare the different vendor solutions before choosing an appropriate solution.

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