Need assessment is the first step
Lot of articles have been written about preparation, planning and implementation of ERP project. Still what is to be discussed is which organization needs an enterprise resource planning solution (ERP) and at which stage?
Every organization which is planning to implement an ERP solution must perform an honest and thorough assessment of business needs and alternatives. This is an important factor of taking ownership in the ERP or any alternative solutions.
Though there are plenty of good reasons to implement ERP including many "no brainers", in most organizations the decision is not so obvious and one must objectively evaluate the validity of the proposed business case and timing,
It is therefore businessmen must ask the some questions before spending on ERP to bring some sanity to the decision-making process.
Are the business and technical strategies that integrated in the new ERP system compatible with your business?
What is the real problem you have with your existing software or your business processes?
Would an ERP project be one of the top two priorities within the organization given other internal and external projects, initiatives, or probable events?
The claims of the new ERP system actually result in better decision-making or make lousy managers more effective?
Does anyone understand the data or capabilities of the current software?
Can the new ERP system bring result-oriented performance so that the existing application which seems to be working fine could be discarded?
Is the current application software gives you a sleepless nights?
Is the current software is too old to be customized and no not supported by any vendor?
Can a few purchased (and integrated) "bolt-on" applications do the trick vs. buying an entirely new package? Should a limited pilot project to be deployed to check the efficiency of the software before going to the full fledged implementation of new ERP system?
Are the proposed operational benefits and cost savings of new ERP system authentic?
Should all the implementation and support cost in the ROI be considered?
It is advisable to hire independent business consultant to analyze the situation comprehensively. A need assessment is the first step which will be followed by the ERP readiness assessment, which are two different things. So think right and act right. No doubt, success will follow you.
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An effective ERP system gives the solid foundation to the supply chain which enables information; material and money
Organizations must realize that after the implementation of an effective ERP system all of its process becomes more efficient.
THE latest reports shows that majority of the midsize organizations are using ERP to support a variety of business issues.
We can very well say that the ERP buying decision is like any other procurement decision.