ERP is a system that has the ability to manage all the data, functions, and transactions of any business within one system that is accessible across the board within a company. When it comes to implementing this software, there are many different factors that need to be taken into consideration. Considering that this software reaches almost every single aspect of a business, implementing it means that certain significant changes have to be made in terms of the business. Accordingly, this article will look at some of these changes along with their effects and benefits.
In terms of implementation, there are three services that are provided to help make the change efficient and successful. These three services are consulting, customization, and support. Generally, it can take time to make the change to ERP software. This time period depends on a variety of factors, such as the size of the business, number of modules, customization, and the manner in which the business’ functions change. In addition, the business owner’s attitude towards making this change also has a significant impact on this process. Usually modular ERP software is installed in stages, and small companies will undergo the change in a few months, whilst larger businesses may even take years.
Due to the nature of this software, many company functions will have to undergo changes. It is absolutely critical that these functions be thoroughly analyzed before starting the change to the ERP system. For the configuration process of this implementation, accurate data on a company’s processes is key. For example, it is necessarily to know what type of inventory accounting the organization uses or the manner in which projects are managed. This analysis helps match the software to the business and customize aspects of the ERP based on the company. However, it must be noted that additional customization will increase the length of the implementation period. An important factor that must be considered is that it is much easier to implement an ERP system in a centralized company, as opposed to an organization where the functions are highly decentralized. However, once the company’s units are adjusted, the ERP system works perfectly. Another important aspect of implementation is data migration, which is key to the success of an ERP system. It is important to identify this data, time its migration and set data-related policies to ensure that the migration process is successful.
When it comes to this software, there is even a two-tier ERP system available for companies that wish to run two different systems at once: one system for the corporate level and one for the divisional level. Customers can further customize their ERP system through mechanisms such as rewriting parts of the software or adding a new module. However, these mechanisms are expensive and difficult to sustain. Additional features include extensions, which are external software that can add more functions to an ERP system.
In this manner, an ERP system can be implemented and configured. It is quite clear that with this process, companies and ERP vendors must be vigilant and careful with how they configure the system to suit the business.