IMPLEMENTATION OF ERP SYSTEMS (STUDY OBJECTIVE 6)
There are many important factors and issues to bear in mind when an organization considers implementation of an ERP system. The management of an organization must consider each of these issues either before or during the ERP implementation. These issues include the following:
- Hiring a consulting firm
- The best-fit ERP system
- Which modules to implement
- Best of breed versus ERP modules
- Business process reengineering
- Customization of the ERP system
- The costs of hardware and software
- Testing the ERP system
- Data conversion
- Training of employees
- Method of conversion, or “going live”
Many of these issues are interrelated, but the following discussion will address these issues one at a time.
HIRING A CONSULTING FIRM
Very frequently, organizations considering an ERP implementation hire a consulting firm to assist with all or part of the implementation. If a consultant is hired to assist in the entire process, the consulting firm will help with the remaining factors 2 through 11 described in the next subsections. For example, the consulting firm is likely to assist the organization in evaluating and selecting an ERP system, implementing the software, and training employees to use the new system. Alternatively, an organization might choose to use a consulting firm for only selected parts of the ERP implementation process.
THE BEST-FIT ERP SYSTEM
An organization must choose the ERP system that best suits its needs. Chapter 6 described some ...
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