ERP Systems

ERP Systems

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ERP SYSTEMS

Enterprise resource planning refers to the process in which a firm or company integrates and manages all the important sections of the business for enhanced operations. However, if the ERP system is not carefully implemented, it would lead to cost overruns for the company. According to Ed Featherston, (2016), determining whether adequate time was taken to analyze the entire process by gathering the ERP requirements can be one of the approaches that can be applied to shed light on why the project fails. Ed further says that automating an already bad system can only fasten the bad process. Additionally, most companies do not sufficiently identify some of the crucial processes involved before implementing the ERP system. This hinders the required adjustments which would rectify the problems before automating the entire process.

Furthermore, confirming whether all end-users from the various departments were involved in the process can determine why the project is experiencing difficulties. This is because these users, and not just the employees from the IT department, require adequate training to ensure that the cope accordingly (Jennifer, 2017). More importantly, it’s necessary to ensure that proper budgeting was done to ensure that the project runs smoothly without interruptions. Moreover, bearing in mind that ERP systems are quite complex, it’s very important to confirm whether the implementation process was done systematically in small steps.

When tracking down these causes for the less-than-optimal outcomes of the project, it’s important for a company to ensure that they receive professional help, opinions, and solutions. As such, outside consultation from experts would be the better option as compared to relying on in-house talent. This is because there are certain individuals or software companies which offer specific support and solutions to companies based on the specific systems (Gavidia, 2016). Employees belonging to that particular company may lack the specific skills and expertise necessary to identify and track down the specific reasons and areas that would be making the project to fail. As much as it may be expensive to outsource, it would be the best option to yield the best results.

References

Gavidia, J. V. (2016). Impact of parent-subsidiary conflict on ERP implementation. Journal of Enterprise Information Management, 29(1), 97-117. doi: 10.1108/jeim-03-2014-0034

Jennifer, L. S (2017). 11 common ERP mistakes and how to avoid them. Retrieved from https://www.cio.com/article/2397802/enterprise-resourec-planning-article.html