What are the critical issues that you need to address for the successful implementation of erp?
Answers
Critical Success Factors in ERP Implementation
This blog review of Enterprise Resource Planning or ERP Implementation procedures and critical success factors. Now the ERP use is generally common in big corporations and even SME’s are using various available ERP packages. But not every company gets the return from using the ERP system. I have been part of 3 different ERP systems and in my experience companies are failing to set up the ERP system because they cannot reach the predetermined goal. The ERP is not only a technology that support the management but also a way of the management. ERP provides many benefits but in nutshell any ERP system provides two major benefits that do not exist in non-integrated departmental systems:
A unified enterprise view of the business that encompasses all functions and departments; and.
An enterprise database where all business transactions are entered, recorded, processed, monitored,
ERP Implementation
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My experience suggests 9 critical factors for the successful ERP implementation:
Clear understanding of strategic goals
Commitment by top management
Excellent project management
Organizational change management
A great implementation team
Data accuracy
Extensive education and training
Focused performance measures
Multi-site issues
So from these critical factors, we can find that a successful implementation of the ERP system is not only set up a technology support of the information system, but also change the way of management. Successful ERP implementation requires the organization engage in excellent project management. This includes a clear definition of objectives, development of both a work plan and a resource plan, and careful tracking of project progress. And the project plan should establish aggressive, but achievable, schedules that instill and maintain a sense of urgency. A clear definition of project objectives and a clear plan will help the organization avoid the all-too-common ‘‘scope creep’’ which can strain. From this part, we can find that the ERP system is an information system. It is in charge of the collection, storage and supply of the information. But the critical factor of the successful is not how to build the information system but how to use the information that we get from the information system.
Unfortunately, some companies view ERP implementation as simply a software system and the implementation of ERP as primarily a technological challenge. They do not understand that ERP implementation may fundamentally change the way in which the organization operates. This is one of the problematic issues facing current ERP systems. I think the reason why ERP implementation fail is generally due to poor planning or poor project management, change in business goals during the project, and lack of business management support are the top three reasons for the failure of IT-related projects cited by IT managers. I believe that the main reason why implement fail is not the failure of the ERP system itself but the usage of the ERP system.