An ERP implementation and software can be very disruptive to a company particularly if it is a long-term business system review endeavour. In fact, there is an entirely different set of processes in an ERP implementation, compared to an implementation of accounting systems. ERP processes are more oriented towards accessibility and flexible applications. ERP prioritises two issues: scalability and performance.
ERP solutions are scalable up to 1,000 times, according to business system review Gartner Group, as a minimum. After the first year, an ERP system begins to work almost as a second skin of the company. The problem with ERP systems is that they have a very specific purpose to serve an organisation, and one that fits within a finite budget.
It is also not unusual for ERP systems to require one or more dedicated resources to manage the system. This can also be problematic: ERP software implementation is a very time consuming task, and resources should be dedicated, and the majority of the company should be making available for ERP system maintenance.
ERP solutions are not intended to interface with existing legacy systems. However, to better understand ERP processes, it is necessary to understand what an ERP consultant can and cannot handle. ERP systems employ software theory, and in some cases Law of large and small number efficiency. ERP business system review can be very resource-intensive. It requires that all required hardware and network be in place and become operational.
Consider a hypothetical company, whose two-person team is all installation-specialists. ERP must first be deployed, and must be installed by a Committee if the implementation is through an ERP system-and a full-time employee of the company must be dedicated to ERP. This can entail hundreds of man-hours of effort every month.
Business system review cannot handle the diverse nature of business and its entrepreneurial and corporate structure.
However, ERP is an ideal solution for large-scale, long-term planning processes. Besides time and energy, consultants can save a lot of money. Experience from ERP implementation projects for large companies illustrate the value of ERP projects for large companies. According to ANAB, SME’s who implement ERP save almost an estimated $5-$10 million in the first year after business system review implementation.
SMEs lose a lot of their time because of inability to respond to customer and vendor demands, and also have to pay a bad price for purchasing software licences, in some cases. Too inexperienced in the implementation process can lead to serious contact problems with ERP vendors. One big need of ERP implementation by large business system review companies is proper training. Training needs to be well-defined and relevant for each stage in the implementation process
“ERP involves the cost of changing processes of a company, the work of individuals is involved, and costs could be very high as software implementation process requires specialised experience and training” according to Jonathan Blagodarski, a technology specialist in ERP implementation for a “aloDis”, a business system review company which specialised in planning and implementation of ERP system for a ” Technologies”, a large automotive supplier.
“It is the ability to make a company’s strategies and processes more effective and efficient,” said Blagodarski. So companies with this need for fast and successful implementation should consider ERP.