8. How can the features of an ERP system be customized to meet specific requirements of a company?
What is an ERP System?
A Enterprise Resource Planning (ERP) system is an information technology infrastructure that consists of integrated enterprise-wide applications used to effectively manage and monitor the various operations of an organization. ERP systems help companies collect, store, manage and interpret all the data from different business processes in one single platform.
Measurement of Successful ERP Selection
The success of an ERP system lies in how well it performs in addressing the needs of the company. While selecting an ERP system, the company must evaluate and measure how it would help the company achieve its objectives. The organization should consider factors like budget, scalability, features, level of customisation, user experience, vendor engagement, availability of resources and support, etc.
5 Common Mistakes and solutions in ERP Selection
1. Not mapping an ERP to growth strategy
The ERP should be sufficiently flexible to be adapted to the company’s business strategy rather than the company having to conform to the ERP system which means that the ERP should be scalable to support growth within the company.
Solution: Before selecting an ERP system, the company should have a clear idea of its growth plan, budget, and desired features.
2. Failing to involve key stakeholders
The team that takes the decision of which ERP to select should involve various stakeholders like IT team, employees and customers while making the selection to ensure their requirements and feedback is taken into consideration.
Solution: Have regular meetings involving the decision-making team and all relevant stakeholders to discuss the company’s objectives and to share ideas, opinions, and suggestions.
3. Not considering the cost and time of a complete implementation
It is important to consider the total cost of implementation of the ERP system, which includes the cost of implementation, customization, sofware, training and support.
Solution: Create an implementation plan that focuses on cost optimization and possible shortcuts to speed up the implementation process.
4. Neglecting the level of customisation necessary
The ERP system may not support all the features that the company wants and depending upon the kind of industry and company size the level of customization will vary.
Solution: The IT team should conduct thorough research to determine the level of customization.
5. Selecting an inappropriate vendor
Many organisations make the mistake of selecting an ERP without considering the vendor’s expertise, overall track record and reputation.
Solution: The company should thoroughly review the vendors by looking at references, visiting customer sites and assessing the vendor’s expertise.
Summarised table of the mistakes and solutions
| Mistake | Solution |
|---|---|
| Not mapping ERP to growth strategy | Before selection have clear idea of growth plan, budget and desired features |
| Failing to involve key stakeholders | Involve all stakeholders in the selection process |
| Not considering the cost and time of a complete implementation | Create an implementation plan focusing on cost optimization and possible shortcuts |
| Neglecting the level of customisation necessary | Conduct thorough research to determine the level of customization |
| Selecting an inappropriate vendor | Thoroughly review vendors by looking at references, visiting customer sites and assessing their expertise |
Conclusion
The selection of an ERP system is an important investment, and it is essential to ensure that all the mistakes and solutions mentioned above, are taken into consideration before making a decision in order to avoid any costly mistakes. ERP selection requires planning and comprehensive research to successfully select a system that is tailored to meet an organization’s every need.
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