ERP objective is to integrate all departments and functions across a company into a single computer system that can serve all different departments' particular needs. That integrated approach can have a tremendous payback if companies implement the software correctly.
Implementation challenges have four main factors
1. Business process knowledge
Every ERP project requires some level of customization due to type of industry and different business process. Therefore, there is a need for consultants or group of people in organization who understand both the information technology and business process.
2. Project (Implementation)
Implementation process is a very critical phase of ERP projects. Timelines and milestones should be followed very carefully. Which approach is suitable for implementation.
3. People
ERP consulting team and company's key users are the main factor to make the project successful.
4. ERP Software
ERP package features are one of the key factors that affect the project. ERP package must bring minimum customization for projects. Stardard in ERP project, implementation can be quick and cheap. When software developers are brought in to develop specific business processes, costs can escalate to ten or twenty times the license fee.
Today, it is much easier to find an ERP package that meets almost 80% of busniess process requirements. Every company has some unique requirements but these requirements can be solved in ERP platform. Before ERP projects, most of company says "we are unique." This statement is not true in most cases as they have not experienced or used an ERP software before.
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