Implementation Of ERP

When implementing an ERP system, a company must go through careful strategic planning and have a strong commitment from top management. Implementation can take upwards of 2 years or longer, cost a few 100 million dollars to implement and is very hard to turn back once the company begins. There are many concerns when implementing an ERP system. Some of these concerns include management commitment, reengineering, integration, and choosing the right consultant for the job.

To be successful in the implementation of ERP the most important aspect is the commitment of top management. Management needs to be involved in all aspects of the implementation because the company will be repositioning and transforming business practices throughout the implementation. The entire implementation consists of reengineering the processes of the business; if the management abandons the project in the middle then the company can suffer a loss of millions of dollars. Top management needs to monitor the project throughout the changes because the success of the ERP system stems directly from the commitment of top management. ERP implementation is about the people running the system not the processes and technology.

The next important step is the reengineering aspect of the ERP implementation. ERP provides a generic business model for the company to follow. The problem with most businesses is the fact that they do not fit directly into the model. Since the ERP software can only be customized so much, many businesses need to try to fit the model of the ERP. Some business techniques are so unique that the customization of the software is appropriate. However, customization of software should be avoided when possible because of the extreme costs.

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...are packages offer global packages that include exchange rates, multiple languages and many other features for global positioning. One can find out more about these projects at the company web sites or in business magazines.

ERP is one of the fastest growing segments of the software market. The market in Enterprise Resource Planning software reached revenue of $66.6 billion by the year 2003. ERP systems are considered the wave of the future for operating both small and large companies. The integration and communication an ERP system offers, allows many businesses to benefit from the implementation of these systems. Although the systems can be very beneficial to the business the commitment of the management, the reengineering process, the integration and the ERP consultant are all important matters a business needs to consider when implementing an ERP system.