A Framework for Evaluating ERP Implementation Choices
ERP is a packaged software and is developed for a market not an individual customer, there is a time to market pressure on the developers ad usually the developers are not related to the customers.
Therefore the fit of an ERP system to an organization is difficult.
Traditional software is tailor made and developers are involved first hand.
Best practices are hardly universal, culture and country specific applications are present
Larger, global, more complex, associated with higher risk.. ERP is regarded as a standard
Adaptation involves customization, positive correlation between initial fit and implementation success. Different types of customization are;
Technical customization
Module selection
Table configuration
Code modification
Table configuration is difficult since there are many tables, and relations and they should be understood very well and also it is time consuming however if the system is tailored this way full vendor support and ease of future upgrades remain.
Code customization has greatest flexibility, highest risk highest cost; incompatibility with higher versions.
The decision on which customization to choose depends on the capabilities both of the software and the company.
Technical change capabilities
1) understanding of ERP systems
2) ability to make desired system changes
3) ability to develop system management projects
Process change capabilities
1) understand business processes
2) ability to design and change business processes
3) ability to manage large scale change projects
Configuring an ERP System: Introducing Best Practices or Hampering Flexibility?
When configuring a system people knowing the business processes must be involved. Also in order to be able to benefit form an ERP system and avoid resistance key people from departments who will be using ERP after going live should be convinced and participate in the process.
Tuesday, June 24, 2008
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