ERP applications view each business transaction as part of an inter-linked process that makes up the entire business of an enterprise and not as a separate and unique activity. To accomplish this it breaks down processes into distinct but inter-related functions. It further correlates each of these functions with other functions from other processes so that data sharing is facilitated and duplication of tasks is avoided. Once there is a close integration of an ERP system, the organization experiences increased efficiency and greater ROI.
A true ERP solution is a highly ambitious program that seeks to build an integrated software program which will answer all the system needs of different departments of an organization. It is ambitious because it undertakes to provide all the functionalities that each department is accustomed to and yet obviates the need for multiple systems to accomplish these objectives. While achieving these goals, it also enhances the performance capability of the organization because it saves time and money by making available the data entered at any point of the system to everyone who needs to access that data.
When an organization undertakes an ERP implementation it faces resistance, covert or overt, from employees who were handling the existing applications because it is never easy to adapt to change. The organization has to educate those employees about the advantages of the implementation and clear the misconceptions they might have. The organization will also have to apprise its business staff about the use of the ERP system for removing the inefficiencies of the existing business processes.
Most of the ERP software consists of modules designed to work with different aspect of a corporate system like Human Resources, Payroll, Accounts Payable, Accounts Receivable, Purchasing, Materials Management, etc.
The chief advantage accruing to businesses is that they can implement the ERP solution to one segment of their operation, evaluate the benefits that they derive and then adopt it to other segments. By adopting this approach, instead of relying on perceived benefits, organizations can decide on extending or jettisoning the ERP implementation based on actual benefits.
Whether it is a module by module implementation or a system-wide implementation, the challenges posed to the organization are numerous. Each industry has its unique practices and each organization has its methodology. Although all ERP packages are exhaustive in the sense that they have the functionalities and capabilities to address most of the computing needs, the existing system cannot be ported onto any module of an off-the-shelf ERP package. The business process is to be aligned with the software, it could mean business process reengineering or customization of the software or a bit of both.
ERP software are so designed that organizations need not go in for a system-wide implement but can seek to do it in a phased manner. Both these options are rife with complications and could spell disaster to the unwary.
There are plenty of choices available in the market for ERP software. An organization that seeks to derive the maximum possible benefit from an ERP solution should consult with experts who will study the existing business processes and based on their expertise and experience with different ERP solutions in the market, evaluate the suitability of different packages and recommend the right package. The identification of the right ERP solution is just the first step. The organization has to take numerous additional steps including selection of the right vendor, selection of right consultants who will assist in the implementation, identification of corporate control issues to address, provision of adequate training, and adoption of the right implementation route.
Lodestar Systems has an excellent track record in helping numerous clients spanning different industries with ERP implementation and upgradatation. We have expertise and experience in working with a host of technologies spanning legacy, client/server and ERP systems. We will be more than happy to showcase any of our past projects to prove our credentials. We are only a telephone call away to set-up a time convenient to you to discuss how we can help you achieve your overall objectives in a cost and time effective manner.
