lessons learned by Inanc Erdagi

- ERP is a single database from which modular applications get the data,
- ERP systems work real time, i.e. the up to date data could be reached any time,
- ERP comprises all functions of a business,
- The main difference between an ERP system and an MRP system is that, ERP system capabilities regarding to Financial and HR issues are improved,
- Before implementing an ERP system, the management problems must have been solved and the relationships between functions must have been well established. Improper performance regarding to these issues is one of the main reasons why an ERP implementation projects fails,
- The failure of a project could be described as not being able to attain the targets at following;
o Budget,
o Time,
o Performance of the implemented system (meeting the requirements)
o Resistance to use the new system
- ERP systems are designed for all kinds of firms, therefore they have to be configured to match the needs of a specific company,
- ERP consultants should not be expected to solve the managerial issues since they can not know all operations of a firm immediately.
- ERP systems are especially useful for companies having facilities/plants at different locations and looking for a solution that will provide better communication and integration of them,
- SAP is organized around business processes created with contribution of business functions
- SAP could work with different languages, currencies, accounting practices, tax regulations
- An important step ERP implementation is forming the core team and this team should include representatives of different departments having significant operations within the organization as well as a champion from the upper management. The champion’s main contribution will be through enabling allocation of enough resources for the ERP project and solving any issues that may need involvement of upper management. IT manager, and consultants are other major members of the team
- Consultants and managers should work together since this would enable keeping the knowledge developed/gained during implementation process
- The main reasons why the processes of a firm could change prior to implementing ERP are,
o SAP includes best practices and the firm may find them more appropriate to use rather than insisting on existing practices,
o The analysis performed before implementing SAP could reveal the required/necessary improvements and changes at the existing processes, however it is advisable to make the analysis before implementation and make the process changes during implementation
o If the firm is at a certain size, customizing the process could be less costly/difficult than customizing the SAP,
- There are different ERP options; major players (such as SAP, Oracle etc.), smaller ones and open source. They have different advantages and disadvantages,
- The mergers at the ERP industry result in transfer of special know-how as well as increasing the market share,
- Regarding to open source ERP applications, the quality of the community could be understood from the presentation of several metrics,
- SAP has a three tier architecture,
- Audit trail capability of SAP enables knowing who did what,