ERP (Enterprise Resource Planning) is software that is implemented in organizations of all sizes to execute the business functions with uniform sharing of data and information across the different departments of the organization from a centralized located database. It helps in the integration of all the functional units of the organization to give better performance and productivity. The information and data can be accessed by anybody in the organization to ensure the smooth and speedy business processes that ultimately results in higher profitability of the organization. The main benefit of ERP implementation is that, it enables easy tracking of the overall performance of the organization as the software keeps on updating the data and information for each and every transactions and collaborations in time.
Implementing ERP is a daunting task as the nature of the software varies depending on the different types of requirements of the different sized organizations. A thorough planning is required by a team of experts taking into account the minutest details of the organization. The success of the ERP implementation depends a lot on this spade work as this involves huge costs and is a time consuming process.
After due planning and assessments of the resources and the requirements, a standard work path is laid out and the ERP system is tested in a single department based on real migration of data instead of the dummy ones. This step will help in assessing the performance of the ERP and after satisfactory results it can be implemented in other departments. The employees of the organization must be duly trained by recognized experts to make the system user friendly. They must be trained enough to detect any faults or errors that may arise in near future.
Few more essential factors need to be considered before going for ERP implementation.
1. Focus and the targets of the organization must be clearly chalked out based on the requirements and the budget.
2. Since the software comes in modular forms it is wise to prioritize and implement the module according to the situational demands.
3. Estimation of the hidden costs must also be factored in like training of the employees, hardware and software costs, initial low productivity and maintenance costs.
Methodologies in Implementing ERP
1. Going for a joint venture with other industries instead of doing it all alone. That saves cost and prevents heavy loss.
2. One can implement ERP all alone by taking calculated risks duly supported by a meticulous planning and assessment.
3. ERP implementation can be done fully or partially in an organization depending upon its financial potential and resources. Lesser risks are involved and careful selection of the software must be done to perform the particular function in the organization.