ERP+Implementaion

=__IMPLEMENTATION__= Implementation requires strategic thinking that allows companies to gain better understanding of business process. Organizations start with the project preparation. This usually involves a planning process where people establish targets and determine a plan to follow. The project management team sets forth its responsibilities and performance objectives then organizations can move on to the Business analysis of the existing business process which provides vital background information necessary for system selection. In The next stage, the organization can focus on developing a technical foundation while testing designs of business processes. Before going live, an organization should make any final preparations, complete the training process and then the company should be prepared to go live.



Quick Implementation Checklist
 * 1) asses business process and choose ERP package
 * 2) Prepare and define ERP implementation stages, stipulations and criteria
 * 3) Gap Analysis – identify gaps to bridge
 * 4) Business Process Reengineering
 * 5) Design the system
 * 6) In house guidance, training
 * 7) Systems Check
 * 8) Employee Preparation and Post Implementation Goals

To ensure Implementation is successful organizations may want to begin with diligent research into potential systems. It is also important to allocate enough resources, internal and external, to ensure adequate return. An Organization must adhere to all changes. It is also important that there is early user involvement and early adoption of new business solutions.

Implementation involves integration of ERP with data. The Value of system can be determined by the quality of data moving through it. Organizations may want to perform a data quality audit before implementation. They may also want to invest in an ongoing data quality solution that can be done by the ERP system, or by a Third Party. Data has to be identified for migration, Data migration is crucial to the success of ERP implantation and requires significant planning.

Implementation process usually fosters healthy relationships amongst different departments within an organization that would have not otherwise crossed paths. Once implementation is complete it will directly and indirectly redefine organizational functions. (//ERPWIRE)// The faster ERP is implemented, the quicker and better are the advantages and delivery in terms of results. Companies should also develop a plan for training their users which should include constant training on the system and refreshers when necessary.

It is best to implement ERP system in stages, with regular updating and expansions over time. Various implementation methods include
 * 1) Implementing whole system at one time. With this method, the entire business process will be revamped at once. Companies are able to experience the functioning of ERP system throughout the entire organization. This is by far the most ambitious method to implementing ERP, and this can also be the most difficult as well. Companies sweep away all of the old and replace everything with a completely new system. This requires the entire organization to make one change at the same time. With this method, organizational change may be stagnant, system may be slowed, and business will slow up as well.
 * 2) Partial Implementation is when the company chooses to implement ERP in selected functions that may or may not have a familiar interface. ERP package will only perform particular function or functions and the rest of business will operate as usual. ERP applications are implemented and deployed module by module. Organizations choose which modules match their business needs. Also similar to a “franchising strategy” (35) which tends to suit larger companies that do not share a lot of common processes across business units. Independent ERP systems are installed in each unit while linking common processes across the enterprise. The systems link together to share information necessary to get a big picture across all business units.
 * 3) Company can modify or restructure in order to align with the ERP functions. This method is not practical for bigger companies because it requires a large amount of restructuring
 * 4) Joint Venture Implementation with other organizations in the Industry
 * 5) Small companies can engage in “slam dunk” implementation – can take as little as 6 months, ERP dictates the process design where the focus is on just a few key processes. The ultimate goal is to get ERP up and running quickly

Implementation time can vary depending on the business size, number of modules, customization, scope of changes, and readiness of the organization to take over once implementation has neared completion. Most Projects take at least 14 to 36 months to complete. Some bigger projects can take up to several years to complete. Various customizations and configurations that may take place can also increase implementation time. If an organization is decentralized, then implementation may take longer due to the extra steps that the organization has to take in order to meet specified needs.

Internet driven changes have reduced implementation times. This is referred to as ON Demand or Software as a Service (SaaS). These types of ERP modules are usually HR or finance applications that are hosted by a third party. Customers have access to shared ERP application via Web. Software does not need to be installed, which reduces implantation time. It also allows for easier and more frequent upgrades since they can happen automatically because the vendor manages the applications and can rollout patches and fixes regularly and cheaper. Upfront costs also are reduced as a result of a reduction of integration and consulting costs. Organizations usually pay a monthly fee based on the number of users on the system rather than buying a licensing agreement. Vendors will provide hosting services as well.

ERP systems typically have many changeable parameters that modify the way the system operates. Customized packages are designed in consultation with individuals inside the company. Customizations cane makes the software unstable and harder to maintain. Employees have to adopt the specific business processes outlined in the software. Customization can improve user acceptance of the system as well. However customizing can also increase implementation time and resources. Customized systems may also require additional maintenance in the long. Some organizations have stated that Customized ERP modules/systems have inhibited communication between suppliers and customers that use the same system.

Configuration options allow organizations to incorporate their own business rules but there is often functionality gaps remaining after the configuration process is complete. Configurations are able to handle upgrades to system; Customizations may not handle them as well and may require retesting after updating is complete.

Challenges to ERP implementation or deployment are customization and integration. Integration can be the most difficult. There are “mismatches” between how companies want to run their businesses and their ERP applications because companies want to use the data in the system in a much broader way to integrate it into other business applications and processes. Implementation can also be hindered by cost, schedule overruns, resistance to changes in business processes, unavailability of adequate skills, and overall underachievement. (//Challenges,Robb)// Issues that can occur during or after implementation include enhancement issues, organizational reaction to change which can be negative at times, and inflating resources(consultants, vendors, etc).