ERP Software

ERP Software Implementation

ERP (enterprise resource planning) software systems are applications which, when effectively implemented, integrate all the varied data sources and differing processes of a business into one, information-sharing, unified system. Enterprise resource planning systems have become apparent as the core of successful information management. They are considered the enterprise keystone of business organizations. In fact, a well-designed, correctly implemented, ERP system will be a major force in helping a company cut costs and increase profits.

All companies who buy ERP software hope for a smooth ERP software implementation, but experience has proven that a successful implementation of an ERP system is not straightforward.  ERP software implementation is a process requiring macro-managing at the strategic and development level, and micro-managing at the operational level.  As a result, it is a complicated, expensive, and time-consuming process making it virtually impossible for a business to define a set date when the deployment of the ERP system can be said to be “ready” to start.

The actual time of duration for the ERP software will be dependent on the size of the business. For example, a small company may have its ERP system up and running in a matter of months while a large business may have to wait years before the system is fully deployed. In neither case, however, will it be a matter of just turning on a switch.

There is evidence that as many as sixty percent of all ERP software implementation fails leaving the success rate to be about forty percent.  This number is just too low.  Businesses spend huge amounts of monies in the selection process, purchase, and preparation procedures necessary to acquire and implement ERP. This is money which cannot afford to be simply counted as a loss.

In an attempt to stem the tide of increasing implementation failures, experts have made an effort to create a model which companies can follow in the hopes of discovering the critical components of an effective ERP implementation and of avoiding common mistakes.

Some of the important components included in this model are: pre and post planning, support from top management, team work needed between departments, and education and training of the workforce. In the past, studies have used the terminology –Critical Success Factors- and –Critical Failure Factors- to discuss these same reasons why ERP software implementation so often fails. But these new models go even further by explaining the connections between the CSFs and the CFFs and how they influence the ultimate goal of the implementation project.

Written by :

Amy Cruz