E R P (enterprise Resource Planning)implementation is still a jargon for SME (Small and Medium Enterprises) whereit is a challenge to implement an ERP due to absence of a good coordinator fromthe companys side.

Why most of the SMEs are either unwilling toimplement ERP or unable to implement successfully, despite the fact that thereare number of good ERP software available in the market in branded and semibranded categories at an affordable price. Most of the SMEs are uncomfortableto implement ERP, mainly due to high failure rate in the market. If we recallhistory of ERP failures, most of these failures are not due to softwarefailure, but are due to poor implementation. This calls for a study of reasonsfor the failure.

At the outset, SMEs fail to engage highly paidconsultants, who are the main link between the software provider (technicalteam) and the end user. Further, ERP implementation is not just installationand configuration of the software but is process of defining the way an organizationshould work, it involves defining the process flows within differentdepartments and across the departments, imposing the checks & controls atdifferent points and implementing the authorization levels in all departments,which requires certain important and stern decisions to be taken for successfulexecution.

Who can be a better person than a functionalhead in the company to fulfill the above said requirement of a consultant and astrong coordinator, who has the pulse of the organization and is in aninfluential and controlling position.

ERP implementation involves certain steps whichstarts with BPR (Business Process Reengineering) and who can understandBusiness Processes better than a Functional Head, who understands the processof Purchase, Sales, Inventory, Material Movement, Accounts, Excise, Vat,Consumption, Production, HR etc especially during the Internal Audit process.

The second step of ERP implementation involvesunderstanding the process flow of the ERP software that the organization is inthe process of implementation. Understanding the process flows requires certaintraining on the software and an EDP Engineer with a bunch of exposure andexperience in the technical processes requires certain limited sessions tounderstand the technicalities in any ERP software.

The third step of ERP implementation is to mapthe functional processes of the organization with the functionality of thesoftware. This is where the role of functional consultant is most important andcritical and the best bet is a Senior Executive of the company with functionalexposure and training of the ERP software.

Ones the mapping of the processes is done, theexecution of ERP starts with process definition within different departmentsand across the departments, imposing the checks & controls at differentpoints and implementing the authorization levels across all departments.

To sum up, for SMEs the Functional Head alongwith the EDP Head is the best bet for implementation of ERP.

About the Author:

The Author is a FCA and AICWA by qualificationwith COP, COAIM, CTLC accreditations and is an expert in ERP Softwaredevelopment and implementation strategies. He is the founder & CEO of ERPproduct and services firm Exa Infotech Pvt. Ltd. He has been at the core of thedevelopment of erPro, an ERP software for SMEs.

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