Reasons why implementations have problems
There are a number of theories why implementations have problems:
- Poor planning or no planning at all
- Top Management not involved or did not commit to the project
- Unreliable data
- Lack of training or implementation assistance
- Poor selection process
- Lost project momentum
- Business processes are not corrected
- No proper change management
- errors in detailed requirements collection
- The main reason that implementations fail is the legacy selection process commonly used is flawed.
What is ERP?
ERP is a term that is widely used today but still not well understood. Although ERP (Enterprise Resource Planning) was initially used in the manufacturing industry to plan factory production resources, today it encompasses any resource that can be used and controlled across an enterprise. When implemented effectively, ERP enables companies to break down traditional organizational silos, replacing them with a tightly integrated horizontal structure in which strategy, organizational structure, process and technology are closely aligned. Applications can include financial, distribution, manufacturing, human resources, payroll, customer relationships and time management to name a few.
There is also confusion about differences between an accounting system and ERP. In the past an accounting system was limited to just financial's. This came about when manual books were replaced by computerised bookkeeping. The Sliderule for engineers disappeared and everyone started using spreadsheets. Soon these were replaced by more user friendly systems. Next external (in a silo) specialist systems were used to generate financial information till these were integrated and the modern ERP environment evolved. Today it is difficult to distinguish between and accounting system and an ERP system.
There is also confusion about differences between an accounting system and ERP. In the past an accounting system was limited to just financial's. This came about when manual books were replaced by computerised bookkeeping. The Sliderule for engineers disappeared and everyone started using spreadsheets. Soon these were replaced by more user friendly systems. Next external (in a silo) specialist systems were used to generate financial information till these were integrated and the modern ERP environment evolved. Today it is difficult to distinguish between and accounting system and an ERP system.
Eliminating mistakes
Due to the complexity and diverse nature of the modern ERP system, many companies make wrong choices when selecting a solution. This is understandable given the complexity of systems today. To eliminate this companies should follow a selection process. This can be time-consuming and risky. With the right strategy and tools you can turn your selection into positive change and make the process work for you. If the correct process is followed, you may even uncover strengths and weaknesses you never knew existed .
Due to the complexity and diverse nature of the modern ERP system, many companies make wrong choices when selecting a solution. This is understandable given the complexity of systems today. To eliminate this companies should follow a selection process. This can be time-
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