Measures for Successful ERP implementation

1. Measures for Successful ERP implementation

2. Table of Contents • Conducting a Brief ERP Planning Exercise • Ensuring the Organization’s Top Management’s Support • Customizing only when Essential • Allocating Time and Resources for ERP Training • Appraising the Options Prior to Selecting an ERP Provider • Conclusion • Enterprise Resource Planning (ERP) • Requirement for ERP • Basic Modules of ERP • Main characteristics of ERP • Types of ERPs • Measures for Successful ERP Implementation

3. Enterprise Resource Planning (ERP) • An ERP is a business management software. It has a common database, a common user interface and operates in real time. It integrates and manages the core business processes of an organization and functions as a tool to collect, store, manage and interpret data from a diverse range of business activities. This is achieved by using a suite of integrated applications, which aid in automating, standardizing and streamlining the whole process. It standardizes, streamlines and integrates the core business processes of the various departments of an organization, such as finance, human resources, procurement, customer relationship management and distribution, to a name a few. An ERP is meant to increase operational efficiency and eliminate human errors. • The most common types of ERP systems, based on deployment options, are- cloud ERP, hybrid ERP and on-premise ERP.

4. Requirement for ERP • Accelerates response times by using an integrated database • Simplifies and streamlines lengthy workflows • Eliminates chaotic data transfer, human errors and security gap by integrating separate work processes into one system accessed through a unified interface • Increases productivity • Monitors, manages daily operations and helps make informed decisions • Increases operational efficiency • An effective cost reduction tool to save administrative and operating costs • Facilitates business data analysis • Saves time • Helps to meet customer expectations more easily • Provides real-time data of the company’s daily operations

5. Basic Modules of ERP • Manufacturing • Inventory • Purchase • Management Accounting • Order Processing • Project Management • Financial Accounting • Human Resources • Customer Relationship Management • Sales and marketing • Supply Chain Management

6. Basic Modules of ERP • When one hears the term, “Customer Relationship Management Software” it refers to an ERP software in the context of its Customer Relationship Management module. • Based on these modules, many ERP software packages have earned the reputation of being the “Best GST Accounting Software in India” or the “Best Inventory Management Software 2020”.

7. Main characteristics of ERP • Modular design • Flexible and open database • Operates in (or near) real time • An integrated system • Deployment options include: on-premises, cloud hosted or SaaS. • A common database that supports all the applications • A consistent look and feel across modules

8. Types of ERP • Tier I ERPs • Tier I Government ERPs • Tier II ERPs • Tier II Government ERPs • Tier III ERPs • Tier IV ERPs • ERP as a service(Cloud ERP) • ERP in an IaaS cloud(Cloud ERP)

9. Measures for Successful ERP Implementation In the following slides some of the main measures are mentioned in detail, which steer the ERP implementation process towards success. These measures are- • Conducting a brief ERP planning exercise • Ensuring the organization’s top management’s support • Customizing only when essential • Allocating time and resources for ERP training • Appraising the options prior to selecting an ERP provider These are explained in more detail in the following slides.

10. Conducting a Brief ERP Planning Exercise • An ERP planning exercise should be carried out, ahead of considering ERP providers. Proper attention should be paid to those business operations/processes that need and will be catered to by the ERP tool. The processes for which ERP software is being considered, their main requirements should be analyzed. Precision in planning and proper understanding of an organization’s unique and specific needs leads to zeroing in on the right solution for ERP software that will best cater to that particular organization’s reasons for opting for an ERP tool in the first place. For the successful implementation of an ERP software, proper planning is the first step that will ensure that an ERP software is chosen after evaluating the organization’s business goals.

11. Ensuring the Organization’s Top Management’s Support • In order for successful implementation of any plan in an organization, the support of the top managements is essential. The same applies to ERP solutions. Its success depends not only on proper planning regarding choosing the right solution but also on this choice being supported by senior management that is involved in and oversees the entire process. If this doesn’t happen then there will be poor acceptance of this change and ultimately a failure in user adoption after the ERP solution is implemented.

12. Customizing only when Essential • It is understandable that highly customized systems increase the overall cost. This increased cost applies not only to the initial ERP deployment stage but also to the time when there is a need for up gradation. Those businesses that have unique requirements need to consider if they have an available option to generalize such requirements, in order to eliminate the cost that is required for customization. An ERP solution that is ready to be deployed will offer more stability and less cost, although it can be less flexible on the flip side.

13. Allocating Time and Resources for ERP Training • Proper resources and sufficient time should be allocated to ensure adequate training of the employees who would be using the ERP software. As per statistics, a lack of it, is found to be one of the prime reasons resulting in the failure of ERP tool’s successful implementation. Considerations should be made regarding the time that employees need, to develop their skills regarding using this software and adapt to this change.

14. Appraising the Options Prior to Selecting an ERP Provider • All the ERP package providers that are being considered, should be assessed thoroughly by making them go through several rounds of assessment. This will reveal if those vendors meet all the requirements that have been established in the planning stage. • These few basic measures that have been mentioned above, will help any business to achieve considerable success in implementing an ERP solution to enhance operational efficiency and boost the business’ overall performance with the aid of this highly efficient tool.

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16. Conclusion When these simple yet effective key measures are considered and taken care of in the process of an ERP solution’s implementation, then it will lead to not only a successful implementation but also ensure that the goals of having an ERP solution are met perfectly resulting in better operational performance and enhanced productivity for the business that is using it.

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