What are the challenges management faces when implementing an ERP system?
Enterprise resource systems (ERP) continue to be popular in the business world. successful implementation hinges on everyone embracing the new system. What are the biggest challenges that managers face before, during, and after the ERP implementation process? What are the biggest challenges that employees and other stakeholders face before, during, and after the ERP implementation process?
ERP stands for enterprise resource planning. ERP are software packages that are integration-ally designed to handle organization’s multi-dimensional business information processing needs. A system that can effectively and efficiently integrate the... read more
Enterprise resource planning (ERP) is an integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise wide system environment.
An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex, expensive computer systems in areas which will not use their full capacity
In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another. Tasks that need to interface with one another may involve:
* ERP systems connect the necessary software in order for accurate forecasting to be done. This allows inventory levels to be kept at maximum efficiency and the company to be more profitable.
* Integration among different functional areas to ensure proper communication, productivity and efficiency
* Design engineering (how to best make the product)
* Order tracking, from acceptance through fulfillment
* The revenue cycle, from invoice through cash receipt
* Managing inter-dependencies of complex processes bill of materials
* Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)
* The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.
ERP brings a big Organization Change in terms of how the business processes are managed and changed roles and responsibilities thereof. A successful ERP Implementation has to be supported by an effective change management process as ERP Projects encompasses technology, people and processes. ERP brings a lot of business improvements due to implementation of new technology and influencing the people in the organization to adapt effectively to the new changes brings the true realization or resulting benefits. There are various areas where ERP Change Consultants can play a major role in optimizing change effectiveness.
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1.Before ERP system implementation, you should make your work flow reasonable, that will increase your success rate.
2.During, Creation of basic data will decide your system to be success or failure.
3.Leadership is one key to succss,too.
4.Strong support and ask of the boss, is also a major key.
5.During the process, successful test should be repeated.use many different scenarios.
god bless you
basically challenges are the basis of success. finacial constraints are always important in any implementation.
by joan 2q3q0 8 years ago
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by beadreamer247 6 years ago
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