ERP Implementation
ERP implementation is a long process that involves considerable investment in the form of time and money. Besides, it requires the involvement of different functions, people, procedures and ideologies, and results in comprehensive changes throughout the organization. Due to the complexity and time constraints of organization-wide implementation of ERP, the risks involved are considerable. To guarantee its success, organizations need to concentrate on the following three issues:
Functionality
The functionality of an ERP package should complement the prevailing best business practices in the company's field of operation. This allows the company to take full advantage of the functionalities provided by the package in achieving its objectives and goals. If the package needs customization to support the business practices of the organization, it results in delays and budget shortfalls. Therefore, it is important to analyze the compatibility of the package with the desired business processes to ensure smooth and efficient implementation. Exhibit 15.1 shows how the requirements of a specific sector (healthcare) call for customization of functionality.
Technology
The package selected should be scalable and should support open and non-proprietary technology standards. These characteristics reduce risk and ensure the compatibility of the systems with other IT solutions. The technology should be adaptable to any future changes in business processes without excessively large investment in upgradation.
Implementability
The ERP package should be easy to configure and use, and flexible enough to accommodate the optimization of business processes. Ease of use would ensure efficient storage and retrieval of information.
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