Tuesday, August 26, 2014

Fit the ERP system into business process functionally and economically

What is critical for a company to figure out is how the implementation of a Web-based ERP System like the eresource will make its Business process more efficient and systematic. A company cannot allow the ERP vendor simply walk away with multimillion-dollar ERP project after the implementation. That is because the situation is going to be very difficult for the company if they realize later that some part of the application does not support the companys business functions. In such cases there are only two options left before the company. Either change the Business process to accommodate the software, which will mean deep changes in long-established ways of doing business (that often provide competitive advantage) and shake up important peoples roles and responsibilities (something that few companies have the stomach for)  or they can modify the software to fit the process, which will slow down the project.

It is also risky that it can introduce dangerous bugs into the system and make upgrading the software to the ERP Vendors next release excruciatingly difficult because the customizations will need to be torn apart and rewritten to fit with the new version. 

Needless to say, a shift from the traditional legacy system to a methodical eresource ERP System is a project of breathtaking scope, and the price tags on the front end are not going to bring any uneasiness to any CFOs. In addition to budgeting for software costs, financial executives writing cheques to cover consulting, process rework, integration testing and a long laundry list of other expenses can be avoided. The companies can also expect the benefits of eresource ERP System start to manifesting itself within a short period of time.

The training cost to users of eresource ERP in their new job processes is going to be at the lowest level. Also failure to consider data warehouse integration requirements and the cost of extra software to duplicate the old report formats can be avoided. A few oversights in the budgeting and planning stage can send ERP costs spiraling out of control. If that is taken care your ERP System is going to fit very well into your Business process , functionally and economically.

The following key points are useful in preparing the ground for ERP System implementation.

    The importance of requirements
    Avoiding scope-creep
    The costs associated with scope-creep
    The need for speedy client sing-off on deliverables
    Change management procedures and their importance
    The impact of a change request on the project
    How to communicate and escalate grievances
    The vendors pricing methodology
    Collaboration and communication techniques for client staff and consultants
    The importance of client liaison / project manager (when the vendor has a problem, to whom does it escalate this to resolve immediately?)
    The degree to which a vendor can or cannot proceed without client inputs (e.g, system documentation, source code, the final documents)

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