A Framework for Evaluating ERP Implementation Choices
- The paper proposes the balance of degree of customization for ERP software and processes
- A successful ERP implementation requires fit between software and business processes
- ERP systems are packaged, which indicates they target the market, not individual companies. So, the work with assumptions of their clients. These create
- Differences between ERP capabilities and Company requirements are company-industry-country specific, and can be categorized as in 3 groups, data, output and process.
- ERP projects are more riskier than IT projects because they are Company wise
- Module Selection, table configuration and code modification are the 3 steps of ERP customization.
- Design, implementation, stabilization, continuous improvement, and transformation are 5 steps that companies experience with ERP.
- Primary reason to customize ERP implementation is to fit processes that are supported with ERP to ERP system. Technical customization deals with that.
- Fit can be achieved by changing processes other than the system. Process customization deals with that
- Modules, tables and codes may have different degree of customization, ERP customization choices depends on the degree of fit between ERP system and the company’s requirements.
- When the degree of change and the capabilities of the companies to handle that change are low, project team’s development level must be high.
- The research helps companies understand the customization decisions given the company’s capabilities.
Configuring an ERP System: Introducing Best Practices or Hampering Flexibility
- Large number of orders, quick response is needed, too many employees are included.
- Implementation team is experts in their departments, external consulting is acquired but not in terms of customization
- Team is handling 1 department out of 6 at one time.
- Order management is complex because of difference of products and customers.
- Order management module was too complex to handle with only customizing the ERP software
- So the team decided to find a way between reengineer their customer dealings (business processes) and the software together.