ERP Software Selection
Enterprise resource planning is a system that integrates all functional department including planning, production planning, sales, HR, Finance, Purchase, Inventory etc. Earlier, ERP packages were not designed to support customization, but nowadays customizations are available nearly in all ERP packages.
For a company it is really a tough job to select right ERP. Selection of ERP software is a critical issue. Only key member can select the right ERP for the organization who has a minimum 5-6 years of experience in management level. At the time of selection we should focus on implementation and customization part, timeframe for implementation, cost and time for the customization.
The ERP software solution should be based on the processes in the concerned organization. Software should be from the same vertical like if you have discrete manufacturing then process manufacturing may not suite your requirement. Before finalization of any ERP you can demand for a client visit in similar kind of industries where same ERP is running successfully. This will help you to understand the exact timeframe and cost for implementation and customization in the similar kind of industries. Product may be good but not necessary that it will be good for you also.
Some ERP packages are very simple and ready to use with little customization which is expected in every implementation. In such cases, third party reporting tool that interface to particular ERP should be purchased. Some companies also have a web based ERP (3-tier architecture) systems that require no onsite implementation. This type of system can be access through web browser.
For successful implementation of ERP software users must be ready for change, for this change, management should drive them and explain all the benefits of ERP software. Management plays an important role in ERP software selection as well as successful implementation of ERP software.
==> READ Definition of ERP | Basic Information of ERP
For a company it is really a tough job to select right ERP. Selection of ERP software is a critical issue. Only key member can select the right ERP for the organization who has a minimum 5-6 years of experience in management level. At the time of selection we should focus on implementation and customization part, timeframe for implementation, cost and time for the customization.
The ERP software solution should be based on the processes in the concerned organization. Software should be from the same vertical like if you have discrete manufacturing then process manufacturing may not suite your requirement. Before finalization of any ERP you can demand for a client visit in similar kind of industries where same ERP is running successfully. This will help you to understand the exact timeframe and cost for implementation and customization in the similar kind of industries. Product may be good but not necessary that it will be good for you also.
Some ERP packages are very simple and ready to use with little customization which is expected in every implementation. In such cases, third party reporting tool that interface to particular ERP should be purchased. Some companies also have a web based ERP (3-tier architecture) systems that require no onsite implementation. This type of system can be access through web browser.
For successful implementation of ERP software users must be ready for change, for this change, management should drive them and explain all the benefits of ERP software. Management plays an important role in ERP software selection as well as successful implementation of ERP software.
==> READ Definition of ERP | Basic Information of ERP
ERP Implementation
ERP software implementation is a typically complex job and involves greater risk of failure. ERP implementation requires top management support and willingness to complete ERP project in given time. Usually ERP implementation takes 3 months to 1-2 years time, it depends on the size of the company, number of sites, scope of the change (customization) and willingness of the customer to take ownership of the project. The most important aspect of any ERP implementation is that the company who has purchased the ERP software takes ownership of the project. Implementing ERP is not an in-house job. To implement ERP, companies used to take consultation services from ERP vendors or third party consulting companies. These consultancy services include consultation, customization of product and long term support.
In consulting service, consultants used to map the software with existing business process. They understand the business in detail and define the role of the ERP user. Consultants will prepare a list of processes in Vital, Essential and Desirable (VED) category. In the standard implementation they will suggest to finish vital part only. After standard implementation of ERP software they will find the gap to fulfill his essential and desirable (wish list). They will do some customization to fulfill complete wish list. For support, Customer can take AMC (Annual Maintenance Contract). In AMC customer will get product updates, upgrades, new features and few man month free of cost. AMC charges vary from company to company. It may have on percentage basis or on amount basis. AMCs can be for product, services or for both.
==> READ Benefits of ERP for SME | Small and Medium Size Enterprise
In consulting service, consultants used to map the software with existing business process. They understand the business in detail and define the role of the ERP user. Consultants will prepare a list of processes in Vital, Essential and Desirable (VED) category. In the standard implementation they will suggest to finish vital part only. After standard implementation of ERP software they will find the gap to fulfill his essential and desirable (wish list). They will do some customization to fulfill complete wish list. For support, Customer can take AMC (Annual Maintenance Contract). In AMC customer will get product updates, upgrades, new features and few man month free of cost. AMC charges vary from company to company. It may have on percentage basis or on amount basis. AMCs can be for product, services or for both.
==> READ Benefits of ERP for SME | Small and Medium Size Enterprise
ERP Competition and Challenges for SME
SME (Small and Medium Enterprises) market situation is completely different from other market. The SME market is characterized by a lot of competitors, who are trying to be a market leader. The competition is hard and we have to fight to get a sale. SME used to keep a little margin and they have little earning capacity.
SME Company takes about 6 months to a year for final decision making for ERP. You will have to wait and ensure awareness. You have to keep pushing the same winner buttons: sector specific, same vertical, state of the art solution and low cost price, lower TCO (Total Cost of Ownership).
SME (Small and Medium Enterprises) Company will not wait for you; you have to push all the time. Whenever they call you have to present there. SME customers are hardworking, humble, simple minded etc. They work 24x7x365, they know more than anybody. Their approach is very humble and polite. They have proud of their business. They like simple solution for their organization. They are simple and flexible. They can change themselves according to business environment.
For SME, it is very difficult to maintain the overview of ERP since there are too many functionality and concept changes. It is necessary to understand the available resources and their utilization in ERP. There are too many bad stories of ERP failures, but you can control the development without ERP. You have to be careful in selecting of an ERP.
SME Company takes about 6 months to a year for final decision making for ERP. You will have to wait and ensure awareness. You have to keep pushing the same winner buttons: sector specific, same vertical, state of the art solution and low cost price, lower TCO (Total Cost of Ownership).
SME (Small and Medium Enterprises) Company will not wait for you; you have to push all the time. Whenever they call you have to present there. SME customers are hardworking, humble, simple minded etc. They work 24x7x365, they know more than anybody. Their approach is very humble and polite. They have proud of their business. They like simple solution for their organization. They are simple and flexible. They can change themselves according to business environment.
For SME, it is very difficult to maintain the overview of ERP since there are too many functionality and concept changes. It is necessary to understand the available resources and their utilization in ERP. There are too many bad stories of ERP failures, but you can control the development without ERP. You have to be careful in selecting of an ERP.
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