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erp system how to pick right one?

7. Select a solid ERP provider and make sure that the company you are considering doing business with today will still be here tomorrow. Apart from reading financial statements, talk to analysts and business contacts about the ERP software provider.

8. Understand skill levels in your company and look at the skill levels of the people in your company and IT department, and compare them with what you will need in the future. Identify the areas of need and invest in training and hiring people experienced in ERP concepts, business processes, and technology.

9. Focus on training your people and change management, which is absolutely crucial to the success of an ERP implementation. Every year companies invest millions of dollars in ERP systems, but do not provide adequate training. An investment in technology will not yield returns without adequate investment in people.

10. Understand your organizations integration requirements. Most companies have multiple applications that need to talk to the ERP software. Build integration architecture and use integration tools to reduce total cost of ownership and build a flexible architecture for the future.

Areas in which integration of ERP System best suits, includes:

Integrated Financials: General Ledger, A/P, A/R, integration/consolidation, cash management, multi-currency, multi-language, fixed assets.

Business Intelligence: Ad hoc reporting, executive information systems, multi-dimensional modeling.

Manufacturing / Importing & Scheduling: Purchasing, production scheduling, production process control, material requirements planning, master production scheduling, capacity planning, product definition, WIP tracking.

Distribution: Inventory management, bonded warehousing, logistics, transportation planning.

Customer Service: Sales order processing, returns.

Communications: EDI, Internet / Intranet.

The nuance in picking ERP software

Pre-ERP implementation includes analysis, constructive criticism; homework's which has a significant place in the whole process of ERP. Lot of research and base work needs to be completed prior to the implementation of ERP or even before thinking about bringing ERP into the organization. The plans of the organization must be clearly charted out and how it tends to benefit from ERP operations have to be looked from a broader context.

Conclusion:

This discussion should include important things namely financial issues. Besides it should also account for the potential strengths, weaknesses and threats. How much profit will be incurred need to be discussed and substantiated? Other non-monetary benefits should also be discussed. These studies should involve the contribution of the entire group in the organization right from the person in the highest hierarchy to the one in the lowest level of hierarchy in the organization. The contribution should be validated and brightened by means of presentations, which will help everybody to get insight of the different perspectives, and views. All of them will be helpful in the successful implementation of ERP.


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