ERP Systems

ERP Systems – Why Have Them?  Part 2

Before ERP (Enterprise Resource Planning) systems came along information systems existed on a stand-alone basis.  They were not integrated and therefore did not allow data sharing.  The databases were not integrated either.  Each stand-alone system had a different interface, which made them difficult to use and essentially not at all user-friendly.  The elimination of legacy, stand-alone systems have enabled companies to purchase ERP systems. Enterprise Resource Planning systems have eliminated data discrepancies, data redundancies, increased efficiency, and reduced overall costs.  Enterprise Resource Planning systems have overall allowed companies to gain the competitive edge and improve their customer base to survive in even the worst economies.

There are many reasons to have an Enterprise Resource Planning system.  However, there are some ERP systems that don’t make customers as successful as others.  Some Enterprise Resource Planning customers aren’t thrilled with their ERP system because they feel they didn’t select the right solution.  Selecting the right Enterprise Resource Planning solution can make or break your business.  If you want to realize a return on your investment, you can best do so by selecting the ERP solution that will be most beneficial to your business model.  Be sure to budget more than needed for an ERP solution.  Approximately fifty percent of Enterprise Resource Planning implementations go over budget and last longer than expected.  A typical ERP implementation takes fourteen months without extensive customization work.  Implementing an Enterprise Resource Planning solution may be best done in phases to not disrupt day to day operations of your entire business.

Enterprise Resource Planning solutions typically have a five year span.  If you don’t upgrade your system over the course of five years, it may become quite out-dated and more difficult to maintain.  It usually takes about five years to realize a return on investment.  However all companies differ as does the scope of the implementation.  Some companies may realize a return on investment in the first year while others may take longer than five years.

To select the right ERP for your business, realize a quick return on investment, and stay within budget, plan plan plan and then plan some more.  Planning is probably the most important thing you can do.  Getting feedback from your management team will also help you select the right Enterprise Resource Planning solution.  The selection of Enterprise Resource Planning solution needs to be a unified group effort.

Written by :

kristine H