Cost of ERP Implementation

Companies have to clearly know what enterprise resource is planning before thinking of implementing them. The catch word of ERP implementation is speed.

The faster it is implemented the quicker and better are the advantages and delivery in terms of results. This early process has another hold. The returns are sought at a shorter period. This deviation from the conventional practice has become the order of the day as far as many companies are concerned. Formerly Business process reengineering played a vital role with respect to implementation. It is important to know the components of Enterprise resource planning .Merely defining enterprise resource planning will not help in this. This naturally paved way to development of gaps between the actual results and the one derived during the process of foreseeing. Tuning ERP as per the whims and fancies of the practices followed in the company became a routine affair. This led to slogging and dragging beyond the time limits permitted. It was monetarily pinching and played havoc in the customer’s trust. It is also necessary to understand that mere ERP planning does not guarantee the benefit of erp. It has to be implemented as planned after understanding the components of enterprise resource planning. In spite of having improved the implementation issues what remains static and unfettered is the manner in which companies go ahead with ERP implementation. They do it for the heck of it and without following systematic procedures. Infact they don’t even check the desirability of going into ERP. Some issues that an organization has to address after defining enterprise resource planning are

• Popular information systems
• Likelihood of fluctuations in the choice of technology
• The ability of market players to stay in tune with it
• The ways and means to implement a business applications like ERP
• To benefit from the same so as to gain a competitive edge
• Their usage and services
• The necessity for innovating software applications

If an organization is able to answer these questions without any ambiguity and substantiate the results then it can be said that it has a path or up focus in taking ERP. The questions mentioned above are crucial and will even decide the business model of the company. ERP implementation is a vital in the whole process of ERP. They can take place only if one understands “What is enterprise resource Planning” and defining enterprise resource planning in their organization.

Current Approach

It is essential to have an overview of the current approach. The current approach is claimed to be relatively successful. The current approach more popularly referred to as “baan” has two underlying principles

The idea which concentrates on molding the business

This category is prominent when the organizational unit calls for a radical restricting process by all means. This process will be carried in all aspects of the business .Some of them include strategic manouvere, operation of trade and the circumstances that call for change and adaptability. Defining enterprise resource planning in context to the concerned organization will help to decide on this issue.

The plan which lays more emphasis on technical parameters.

Here business takes the back seat. The thrust lies on technical dimensions. This does not ignore the commercial viability as such but they occupy seat only in the due course of time more so when operations are triggered in full stream and not at the initial stage itself. The advantage with this type is that it does not call for an immediate modification of the business structure. However it is essential to know the components of enterprise resource planning.

Conclusion

The popularity of ERP as a business application does deserve a special mention. The most crucial factor in the whole system of ERP is the implementation aspect. The implementation phase has the ability to cast the spell on ERP’S fortune. As discussed before the success of an ERP Implementation lies in quicker processes and hence training and the speed at which the quintessence of training is received decides its worth and value. Above all one has to clearly understand “What is Enterprise resource Planning “and then implement it.