ERP Implementation
We wonder how people used to manage data when there were no computers. Main frame computers did help in automating many processes. Then came distributed computing, where the user friendly software enabled ordinary users to effectively use computers. As users became more Information Technology savvy, the need to automate routine work has gained significance. ERP and ERP implementation were not known to many. However, we saw Material Requirement Planning, where the automation for material required to be procured and Inventory management etc were addressed. Once the material flow is automated, there was a need for bigger automation. This resulted in Manufacturing Requirement Planning and this was known as MRP II. This took companies to greater heights. Once a location is automated, there came a need to integrate multiple locations, supplier and Customer data, which resulted in ERP implementation. While there are many ERP software providers and many consultants for ERP implementation, the organization looking for ERP must take care of Planning, change management & implementation.
Do not go for ERP implementation in a hurry. There may be many ERP solutions that fit your requirement right away. All ERP systems have modules for all your functional areas. However you may realize that the process defined in the ERP module is not what you actually do. Hence, evaluate different ERP systems available in the market, check which ERP is implemented in a similar industry. If you can afford, hire a consultant to study and suggest the suitable ERP for your organization. Once you identify the right ERP, map the ERP module process to your requirement. If you find the process defined by vendor is different than yours, you have two choices. One is to change your process to that defined in ERP. Alternatively, you may ask the consulting company which is handling your ERP implementation to customize the process for you. All ERP systems are power packed with features, which you can select based on your need and requirement. Do not get confused by the 'loads of information' and the options offered by the ERP vendor. Have a look at the features. Identify your need and select the appropriate process for your ERP implementation. Some processes defined may be better than your current process. Have a look at them, before, sticking to your process. Remember, if you are not leveraging the ERP processes already defined and you are creating your own process, you may be actually damaging the goal of ERP. If you are customizing too much, you may be just automating your process and may not realize the real ERP benefits. Identify the mile stones for your ERP implementation and address the change management. There may some people resisting the change due to various reasons. You need to take all stake holders into confidence. Take their inputs before you freeze the requirement specifications. Form local teams based on each module and involve them in design. Train them before and after the ERP implementation. Above all you need lot of commitment for ERP implementation. It is not a plug and play as many people tell you before they sell their ERP. You need to get the Management approval and commitment. Identify a person as 'champion' who over sees the ERP implementation and is authorized to take any decision on the spot. You will also realize that you need the best people in a certain department are required to contribute to the implementation. For example a best Purchase officer, who knows all the processes of your organization, is required to spend lot of time for implementing 'Materials Management' function. It is ideal to get this person transferred to ERP implementation cell formed. However, you may notice that, his boss may be unwilling to relieve him of his duties. You need to work around and find a suitable and amicable solution to make this kind of valuable resources available to your ERP implementation. Once all your stake holders are happy, you are bound to succeed in your dream of ERP. |
