Lukman Jaji
October, 2019
Paper Source: Source: https://www.syspro.com/dl/WP/SYSPRO-Executive-Guide-To-Selecting-Implementing-and-Operating-ERP-ALL-WP.pdf
In recent times, many companies have come to the realization that operational proficiency correlates directly with the capability to automate core processes while minimizing human intervention. These core processes vary from one form of information management or the other. ERP systems help in automating core processes that would hitherto be extremely time consuming, less accurately, efficiently and effectively executed, and most importantly, would have required several hands to execute.
The paper reiterates the fact that Enterprise Resource Planning solutions have become a major backbone in the operations of companies and corporate establishments. From human resources management to procurement, to supply chain and management of finances, ERP systems are an integral part of the success or failure of an establishment in delivering on its mandate. The paper does give some strategic approach to selecting and implementing ERP solutions with particular emphasis the need for business objectives drive the entire selection process. The paper also outlines a number of questions business executives must answer in order for investments in these systems yield maximum benefits for the establishment.
The paper is silent on legal issues which should be of utmost concern to business executives. The question if what kinds of licenses are available, how easy will it be for the company to migrate their data from the said system to another, should incase a change is required. This will prevent being locked into a path dependence and guard against company operations being grounded.
Furthermore, the paper posits that ERP systems are usually expensive and that the specific business objective being pursued and how much the ERP system will contribute to realizing that objective should inform the company’s investments. What the paper is silent on, however, is the purchasing a complete ERP solution may be expensive, but some it is possible to buy only the modules that are required by the company. This will be less expensive than purchasing a complete ERP solution.
The paper also outlines certain ERP systems selection strategy to be followed, which have proven to have worked over the years. It makes a strong case for ensuring that the implementation strategy is followed is followed, as this will ensure success in this phase. In addition, the paper mentions that how easy or hard it is to operate the ERP system will be the yardstick to measure success and failure. Once the system is deployed, a systems maintenance and user upskilling strategy needs to be in place.
The paper concludes that companies usually use one ERP system for a fairly long time. With this background knowledge in mind, it is important that executives ensure the right system, that fits the company’s business objectives is selected. The paper is silent on the issues of infrastructure needed to effectively and efficiently run an ERP system. Even though it calls for further reading, an issue such as the hardware needed, and a significant part of the overall cost of the system should have been mentioned.
Reference:
SearchERP (2019) Available Online https://searcherp.techtarget.com/essentialguide/ERP-hardware-and-infrastructure-Laying-the-groundwork-for-excellence