ERP Implementation Best Practices - Literature review Example

Enterprise Resource Planning Enterprise Resource Planning Introduction Enterprise resource planning refers to a business process management software that enables a firm or organization to put into use a system of integrated applications to manage the company and automate many back office functions related to technological services and other human resource functions. ERP achieves all the operations of the organization including product planning, development, manufacturing and even marketing. Moreover, firms that use ERP benefit greatly when it comes to competition in the market with other companies due to their being ahead in product development and marketing. The software is designed to be used in large business organizations and often requires dedicated teams to analyze and handle the data. Due to this fact, ERP is considered an enterprise application. Small business ERP are however customized for small business organizations. For ERP to yield superb results, it is important to apply efficient implementation practices. Discussion ERP software modules ERP software consists of multiple application software, individually purchased depending on their purpose and particular needs of that given organization. Every ERP focuses on a particular area of a particular business process like marketing or product development. ERP modules come in different product forms and some of the most common of them include; those for product planning, inventory control, material purchase, accounting, finance and Human Resource (What Is Enterprise Resource Planning - PDF documents. n.d). Moreover, these modules play a fundamental role in the expansion of a given business organization due to the improved production and enhanced marketing standards. With its popularity, other software applications emerge on the daily basis to help business managers implement ERP into other business practices and may incorporate modules for business intelligence, integrating it into a unified package. ERP applications The fundamental goal of using an Enterprise Resource System is to provide one central channel for all information shared by all ERP facets to improve the flow of data across the whole organization. Business organizations uses ERP to manage back office business activities and processes including supply and distribution chain management, enhanced project planning processes, management of human resource and creation of payroll, assessment of business needs and accounting and other financial services in the organizations. To facilitate information flow, ERP systems uses software applications that integrate internal and external flow of information across the whole organization, extending to stakeholders and shareholders (Shanks, 2003). Moreover, ERP applications also include real-time analysis and reporting tools that enable the business organization grasp an unprecedented insight and control over operations that are accessible from smartphones, tablets, pocket PC’s and are capable of deployment across various locations. Additionally, these applications impact significantly in the achievement of business operational goals and improvement of the various business activities. ERP implementation best practices Implementation of an ERP solution is a very critical project that should be given all the seriousness it deserves no matter what type of business one is in. ERP implementation requires commitment from the management team and all the experts involved and should be supported by the enterprise leaders to ensure that the whole process is a success, no matter the cost of the project. With proper planning and execution, implementation of the ERP should be a smooth process that improves the efficiency of the whole business process. For a successful application and solution deployment, some critical ERP implementation best practices should be put into consideration. Select the best ERP implementation that suits your business Given the various functions that ERP does in business operations, there are multiple application processes. Hence, one can choose to build his or her customized ERP and program it into the company’s operations. However, the costs and complexity of this project are too high, and the project may also end up backfiring. One may also purchase on-premium ERP software and install it on the organization’s computers and servers. Keeping ERP technology current is the key to ensuring that the organization tap n more business potential and hence it is vital that one chooses a system deployment option that is easy to update and can easily preserve custom features. Moreover, with cloud technology, product enhancement are painless, and integrations automatically update with system upgrades. Cloud-based ERP provider is responsible for ensuring that the technology is up to date. Moreover, cloud-based ERP does not lead to the business organization incurring a lot of costs as the method of one choosing to build his customized ERP. Get executive approvals and build consensus on ERP implementation The implementation process means more than getting a signature from the company’s Executive members to approve the investment in an ERP solution. Getting executive buy-in and building consensus around ERP also means, educating leaders about the necessity of the ERP implementations to the company. Before moving forward with deployment efforts, the executive must support the idea of ERP technology transforming the business. Building consensus and even excitement across the enterprise depends on frequent communications from the executive about Enterprise Resource Planning implication plans and the changing processes. Scrutiny and building of the security profiles by the board of directors facilitates the smooth running of the ERP implementation process. Once the board approves the investment in ERP implementation, it is vital for the company to look for experts with adequate skills of implementing the process (Rom & Rohde, n.d). Additionally, these experts should be well trained in the handling of the software. Set achievable targets for ERP implementation Applications processes give long term results meaning that changes do not occur overnight. Due to the ERP being a powerful technology software, it can streamline business processes, reduce costs and even improve the way the company carries out its operational processes. The process usually takes time to initialize and hence patience is vital when carrying out the implementations processes. Moreover, ERP solution contains complex back office systems which need to be integrated to make working easier for the users and their experiences enjoyable to a larger extent. Data migration and execution also is encompassed in the implementation of ERP and enhances the workability of the organizations’ personnel. Therefore, implementation of the ERP needs careful planning and time to be executed. Cautious approach to the implementation of the ERP is vital in ensuring that none of the business’s operation processes get disrupted (Nah, 2002). To ensure that the implementation process accelerates, it is important to work with skilled and experienced personnel, who will see to it that the operation goes on well without any interference with the normal business transactions. ERP experts play a critical role in the success of most of the business organizations around the globe. Put attention on strong project management and organizational staff Before any ERP implementation processes, it is critical that the company has the staff resources and personnel to see it the project goes on to completion. Necessity of this process cannot be underestimated since it forms an essential pillar in the implementation of the ERP process. Many companies that begin the deployment process without putting into account focus on staff resources and project management end up facing cases of lack of satisfaction and overworking of these employees (Sprott, n.d). Instances of poor installation also end up being witnessed. It is critical to identify a leader and a team for your ERP implementation as this will ensure that the project goes on without obstacles arising. Average ERP employee members should shed off some of their company’s duties to create room to concentrate on tasks at hand. Choosing a team leader with adequate project managerial and communication skills facilitate the smooth running of the project. The team leader ensures that all issues get addressed in time, and implementation is kept on schedule. Staff members being given a forum to air their views on the project implementation process tends to be pivotal especially during the installation of the ERP into the computer systems and servers. The knowledge from these employees tends to influence even the experts on what software they should integrate into the organizations system and servers. Staff members of that given group know their systems very well as compared to the external ERP experts being required to do the installation. Moreover, a good working relationship between the team leader and staff is very vital throughout the implementation process (Sumner, 2005). Additionally, a proper staff training assessment plays a major part in ensuring that the project goes on well without cases of underperformance. Conclusion For ERP to yield superb results, it is important to apply efficient implementation practices. Keeping these best implementation practices in mind ensures that launching of your deployment remains on track throughout the entire process. Ensuring that there is a process definition and workflow, a better communication plan, and system validation leads to an efficient implementation of ERP. An organization applying best ERP implementation practices ends up yielding high returns in terms of productivity and efficiency. The management team of that organization taking into consideration training for the employees also helps in ensuring that the projects go on without disruptions. It is evident that companies are putting into use the best practices in the implementation process end up reducing time-consuming project tasks like documentation, configuration, testing, and training. It is thus vital for any business organization to apply ERP in the running of its operations because ERP has many benefits to organizations. References Sumner, M. (2005). Enterprise resource planning. Upper Saddle River, N, J.: Prentice Hall. Nah, F. (2002). Enterprise resource planning solutions and management. Hershey, PA: IRM Press. Rom, A., & Rohde, C. (n.d.). Enterprise resource planning systems, strategic enterprise management systems, and management accounting: A Danish study. Journal of Enterprise Information Management, 50-66. Sprott, D. (n.d.). Enterprise resource planning: Componentizing the enterprise application packages. Communications of the ACM, 63-69. Shanks, G. (2003). Second-wave enterprise resource planning systems are implementing for effectiveness. Cambridge, U.K.: Cambridge University Press. What Is Enterprise Resource Planning - PDF documents. (n.d.). Retrieved March 18, 2015, from http://www.docs-archive.com/What-Is-Enterprise-Resource-Planning.pdf Read More