Explain in detail in-house implementation in erp?
Answers
Developing an In House ERP for business. Developing an In-house ERP is the procedure whereby the organization utilizes their own labourers (in-house group of techno-functional consultant and business experts) to create or actualize an IT framework that fits the explicit needs of the organization
There are 6 phases that make up an ERP implementation project: Discovery and Planning, Design, Development, Testing, Deployment, and Ongoing Support. Though this is an iterative process, there will be a tendency for phases to overlap, and for movement back and forth between phases.
Answer:
theory, developing a custom ERP solution in-house to manage your wholesale and distribution business may sound like the perfect solution. However in practise it rarely is. Even though the system would be designed with your specific business processes in mind, the benefits gained from a completely customized solution are often outweighed by the resources necessary to maintain such a “perfect fit” system. It’s preferable to work with an industry specific software company, who can meet most of your software needs out of the box, and provides the option to customize as well. Working with an ERP software vendor who becomes a trusted business partner ensures you get the best of all worlds – a solution that is designed for your specific business type, maintained by a team that provides expertise is the areas of software development and management, and provides guidance and insight into industry process improvements. It’s often the smaller vendors who look to build these types of relationships, as it benefits them in the long run as well – working closely with customers means they get first-hand insight into industry specific requirements, and that enables them to continuously enhance the software to better meet the needs of their target market. Below we take a closer look at the dangers associated with developing a custom in-house system:
First and foremost, as a wholesale distribution company, your core competency is not in creating ERP solutions, nor should it be. One of the problems with developing a system in-house is that it eats up a lot of resources and requires a large investment into the technology and skills needed to keep the ERP application up and running. Even if this task is assigned to an IT department, it still takes time and other resources away from the activities that contribute to the businesses core competency.
Secondly, home-grown software of any kind does not come with outside support. ERP vendors have teams of people with a vast range of expertise in areas such as development, data migration, consulting, reporting, process management, training and more. If something goes wrong with a system developed in-house, it is up to the small team of developers and designers to fix it. This can often be a painful and time-consuming process and takes resources away from managing other IT processes.
The next issue arises from the fact that completely customized in-house ERP systems are way more difficult to maintain and upgrade. Home-grown solutions often require continuous pieces of customization in order to manage changing processes, especially for a growing business. All of these small additions can become unwieldy and leave users stuck when the person who developed them leaves. The development and design of new features are often limited by the imagination of an individual user and aligned with their specific way of thinking. Working with an outside software vendor gives you access to the knowledge of a team who has worked with other similar companies, and thus may be able to recommend better ways for managing certain processes. These systems are designed with the best processes in mind to ensure functionality developed does not disrupt other areas of the system or business. When developing a system in-house, time must be spent planning processes, developing the application, testing how it works and then training users on the new features. When working with an outside vendor, upgrading functionality is often simply a matter of turning on specific features that are already built in and ready to go. An example is turning on the ability to do warehouse transfers when your business expands to multiple locations.