What Is ERP?ERP is by no means a management fad, it is in fact a product that increases computerization of the business environment that has been taking place over the last few decades. Many of the world's largest companies now routinely use ERP software, and increasingly many of the smaller ones are adopting it as well. ERP integrates all that information together in a single application, and SCM applications benefit from having a single source to go to for the most up-to-date information. Most CIOs who have installed SCM applications are glad they did ERP first. ERP is inherently inward-looking, with a purview of well defined business processes. CRM, on the other hand, is inherently outward-looking, where its processes are mediated by the vendor and participated in by customers, where the difference can be substantial. Companies that install ERP usually do not have an easy time of it. Don't be misled when a ERP vendor tell you about a three or six month implementation time. Companies use it to keep track of their business, the bigger the company the more they need to manage it with software as it give them all of the views into what is happening in the business. Companies are often met with resistance on the part of employees who are reluctant to change their proven methods. Employees may also fear for their future in the company, since ERP makes such radical changes to business processes job descriptions to change or be eliminated altogether. Companies implementing an ERP must not only focus on changing their software but also the business processes that will create better efficiencies. Training, service, and support for an ERP system typically is provided by the software vendor themselves or an authorized reseller. Companies had gotten much bigger as result of organic growth and acquisitions, where they have multiple instances of ERP applications, with higher degrees of variation amongst those instances. Companies have emerged claiming to be able to produce a custom solution for you, but it seldom works out as well as it sounded in the sales presentation. You may even get left with a product your own people don't know how to maintain or extend. Implementing an ERP system should be considered long term work, and it is easier said than done, requiring time and money. Implementation can be modular; however the result of this may be a constantly changing suite of programs. Implementing the software in a company usually involves changing business processes (the way people perform their jobs). So employee resistance to these changes can be a major concern on the company's side and requires that executives refine their change management skills. Implementing an ERP system in your organization is not an easy task to achieve, it takes lots of planning, consulting and in most cases three months to over a year. ERP systems are extraordinary wide in their scope and can be extremely for many larger organizations. The Implementation requires the replacement of older, often inflexible legacy systems, and can result in major changes in actual business practices. |