Local Differences In ERP Systems Implementation

May 5
18:52

2012

Tracy Narvaez

Tracy Narvaez

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The requirements of companies in South Africa are worlds apart from those in Europe and the US. Even large companies in SA do not really require the all-encompassing scope and equally high price tag that comes with global solutions provided by multinational providers.

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The tantalizing prospect of an enterprise-wide customized package is what makes ERP systems such a big deal. Each department gets to map out every single process on to its module in the software,Local Differences In ERP Systems Implementation Articles and then integrate it with all the other modules. Similarly, companies in different regions or countries cannot be expected to do the same tasks in the same way. So a package that can be customized as per regional needs by a local implementation team is naturally going to be sought after.The requirements of companies in South Africa are worlds apart from those in Europe and the US. Even large companies in SA do not really require the all-encompassing scope and equally high price tag that comes with global solutions provided by multinational providers. The end result is that many firms have paid too much for a large-scale system they don't need or gone the other way and settled for a lower midmarket offering that precludes any possibility of growth.What makes it worse is that these international vendors send in people from their American and German offices for the implementation. These foreign consultants have no clue when it comes to the South African way of doing business. Before anything else can be done, the customer's divisional heads and IT manager have to sit down and explain the whole process and the paper trails. To get past such problems, what the region needs is an upper-midmarket solution implemented by a local team.The ideal answer lies in something with a built-in framework for companies in the midmarket range that can easily be implemented by a local implementation team. It brings together everything from subsidiaries and agencies to offices under a single IT system. It is scalable enough that when the company decides to wade into a new area, the framework is already there and simply needs to be activated and customized.The company can start off with a few of the core modules such as Production, HR, Finance, Accounting, Distribution and Marketing. They can get started with the data migration from old systems to the ERP, and move the whole thing from test to live servers. As and when convenient, other modules can then be customized, tested and integrated with the live system.This kind of easy to use and low cost package with a smaller implementation timeframe appeals to companies in SA where value for money is still very much a deciding factor. This is another factor that rules in favor of local consultants. Foreign teams have way too many overheads, with culture shock considerations and a learning curve that must be overcome before they can even begin to work on mapping out business processes on to the system.A local team can co-ordinate with the company's managers and get the implementation over with very quickly. In addition, they can help with change management. It is critically important to get the management and users on-board with the new program and the new IT-based method.A lot of companies fail with ERP systems because users simply do not understand why they have to use the system to do things they have been doing manually for years. Employees will only accept the new methods if it comes from experienced local consultants who can explain how it is working well in other companies in South Africa. It needs training and has to be explained in a way that employees can relate to.