Erp systems are used everywhere in the world, regardless of the size of the enterprise in question. According to reports, the ERP market had reached $78 billion in sales in 2004, and all of it needs implementation. In addition to those who have already used the erp solutions, more than 70 percent claim that it has failed them. Well, so many factors come to play here, and it is wise to question why the erp systems don’t deliver what they promise.
Come to think of it, the main issues lie in the implementation methodology and project management and not the erp software package or the IT technology. The truth is that most of the implementation methodology is not broad enough to deliver, whether they are suggested in the literature or supplied by erp vendors, these approaches include the knowledge of project management. However, most of them limit their sreaction to the conventional project management processes of monitoring, executing, and closing, not focusing on planning and initiating.
Some of the most critical problems blame the definition of the project. Because this would affect the approach pursued take to carry out the implementation. Although many people expect the erp solution to deliver top notch results as soon as it is implemented, the technology is not what should deliver. Instead, the results are achieved by the processes executed by people who may not use the tech well when carrying out operations.
Therefore, the scope needs to have a stage to define the procedure the organization must do well to achieve their business strategy and be successful, for example, collect receivables, implement price changes, measure employee performance, manage warranties, deliver product, and also the way in which the erp system is going to improve such processes. In short, the implementation projects need to look at the world from the company’s point of views and not through the eyes of the erp functionalities and system practices.
Unfortunately, the conventional methodologies have not tried enough to address this problem, most of them have not included or selected the right mix of procedures from the project management teams to achieve the tasks at hand.
Click here to know more about ERP evaluation.