ERP (Enterprise Resource Planning) software package has gained world wide popularity since 1990, because of its unique feature in integrating the vital functional units of an enterprise, and enabling a smooth flow of data from a central repository. Many organizations have switched over to ERP system to enhance the productivity and reap more profits. Above all, the ERP helps in tracking the overall performance of the organization, and provides a real time visibility of the business.
ERP implementation involves huge costs and takes few years to implement. It requires extensive planning and spadework led by a team of experts. Lack of planning may lead to complete failure in ERP implementation causing heavy financial loss for the organization, and such instances are not rare.
Implementation of this software has to go through several phases like planning, process assessment, migration of data, educating the in-house staff, testing, usage of the software and its final evaluation. Each of these steps is very crucial, which should be followed with special care.
An organization has to undergo many alterations and adjustments to bridge the gap with the ERP environment. This stage, known as Gap analysis is very important and involves huge costs. Based on the gap analysis, the business model is restructured to make ERP system user- friendly. Restructuring of the business process involves a change in the employee rolls, technical restructuring and a change in the business processes.
The team of experts plays a vital role in gathering all information about the organization and plan accordingly. Depending upon the organizational requirements, the specific ERP software is selected and examined. The experts sort out the important data and transfer them into the system that leads to Data Migration. Choosing the right platform to run the ERP system is another vital step in ERP implementation. The platform must be flexible enough to accommodate customized ERP applications with regular up gradations.
After the implementation of ERP, in-house staff must be properly educated to use the ERP system efficiently. Testing of the software is carried out after using it for some time to check for errors and trouble shooters. This helps in proper evaluation of the ERP package that has been implemented.
The ERP implementation can be successful through regular follow ups with proper flow of information throughout the entire life cycle of ERP. The ERP system should be updated regularly to obtain the maximum benefits of the software.
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