ERP Software Selection

Business Articles | March 26, 2008

ERP is a system that integrates all functional department including planning, production planning, sales, HR, Finance, Purchase, Inventory etc. Earlier, they were not designed to support customization, but nowadays customizations are available nearly in all ERP packages.

Enterprise resource planning is a system that integrates all functional department including planning, production planning, sales, HR, Finance, Purchase, Inventory etc. Earlier, ERP packages were not designed to support customization, but nowadays customizations are available nearly in all ERP packages.

For a company it is really a tough job to select right ERP. Selection of ERP software is a critical issue. Only key member can select the right ERP for the organization who has a minimum 5-6 years of experience in management level. At the time of selection we should focus on implementation and customization part, timeframe for implementation, cost and time for the customization.

The ERP software solution should be based on the processes in the concerned organization. Software should be from the same vertical like if you have discrete manufacturing then process manufacturing may not suite your requirement. Before finalization of any ERP you can demand for a client visit in similar kind of industries where same ERP is running successfully. This will help you to understand the exact timeframe and cost for implementation and customization in the similar kind of industries. Product may be good but not necessary that it will be good for you also.

Some ERP packages are very simple and ready to use with little customization which is expected in every implementation. In such cases, third party reporting tool that interface to particular ERP should be purchased. Some companies also have a web based ERP (3-tier architecture) systems that require no onsite implementation. This type of system can be access through web browser.

For successful implementation of ERP software users must be ready for change, for this change, management should drive them and explain all the benefits of ERP software. Management plays an important role in ERP software selection as well as successful implementation of ERP software.

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ABOUT THE AUTHOR

Nick Mutt is an ERP consultant and has an in-depth knowledge of ERP and Business Management. To learn more about ERP and business strategies, read Business Management Books. Also know the Customization of ERP Software, cost, timeframe and benefits.