Arguably, Enterprise Resource Planning (ERP) systems are extremely complicated. Hence, when implementing an ERP (Enterprise Resource Planning) software application, it is crucial to select efficient team representatives from all areas in business. The central team selected will cooperate with application consultants in adjusting and evaluating the application to fit business requirements in a unique manner. The team members to be selected are individuals who stand for their relevant functional areas within the organization being empowered by the management team in the decision-making process.
What is an Enterprise Resource Planning (ERP) system?
Enterprise resource planning system is a term used to describe the broad activities that help the business in managing its entire activities. ERP systems integrate external and internal management information on the company, holding accounting, customer relationship, manufacturing, service, finance, as well as sales. The all activities across the company are automated by integrated software application (Heizer & Render, 2012). The purpose of the selected team is to ease the flow of information within the organization, as well as managing connection framework between the company and stakeholders. Enterprise resource planning systems is able to run on various network configurations and computer hardware, using a database as storage area for information.
What are some of the advantages and disadvantages in using ERP?
ERP has been used to solve various problems in large organization. Perhaps, the fundamental advantage of ERP is that it integrates many processes; hence, saving money and time. Additionally, it centralizes information and data within the business. ERP systems also eliminate synchronization of changes between various systems. Centralization of data by use of ERP systems brings transparency and legitimacy.
Nowadays, large corporations are the only groups that benefit from technological services of EPR systems. This implies that the medium and small sized enterprises are still in the dark. Research shows that the biggest challenge in implementing ERP systems concern investment. The selected team and employees should be trained continuously on how to work using the system; additionally, it is the mandated of the company to ensure that data integrity is protected (Nah, 2002).
The success and effectiveness of ERP systems depend on how the selected team and employees use it. Hence, workers in the company need to be trained rigorously, but most companies have reduced training sessions in order to cut cost. Therefore, the ERP systems will be underutilized and improperly used. Another disadvantage of ERP systems is that it is exceedingly difficult to customize. A study shows that, remarkably few companies effectively use ERP systems. This is because, EPR system must be modified and customized to go well with the companies needs, and this procedure is both tedious and expensive (Nah, 2002). Most of the leading companies have multiple sections with separate missions, independent resources, as well as chains-of-command; hence, it is difficult to consolidate the departments into a single enterprise, but incase it is consolidated it may reduce benefits. Additionally, ERP system is decidedly restrictive and it does not allow flexible usage and implementation (Heizer & Render, 2012).
Perhaps, re-engineering company’s process to suit the ERP system damages competitions, as it diverts focus from other vital issues. The switching costs incurred during implementation of ERP systems increase the negotiating power of ERP vendors, which may lead to high maintenance, upgrading, as well as support expenses. Due to ERP system architecture, there is a high possibility that ERP systems may not suit SCM (supply chain management), and production planning (Leon, 2007).
Who else from the company should be on the selection team?
The selection team should include core members from each department in the company. This is because companies needs will be incorporated in the implementation process of ERP systems. Additionally, vendors application consultants should be include in the selection team (Leon, 2007). Together the groups will work in adjusting and evaluating what suites the company and the entire business requirements. Vendor’s consultants and core members of each department have a thorough knowledge of how process and operations influences the groups within the company. Furthermore, visionary individuals should be included in the selection team; this is because they understand where the company is going, and how to go by in achieving companies goals.
The members selection team should be respected by peers as their potential team players. They must have a good command in communication, possessing both written and verbal communication skills, as well as being trusted by the company’s management team. Furthermore, the individuals should have strong skills in analyzing the company’s issues and events. The selection group should also be skilled in process analysis, thinking abstractly, and solving problems (Heizer & Render, 2012).
The core team members and vendors consultants selected participates in meetings, transfers, and workshops to transfer their knowledge and understanding of the business. In fact, they are indispensable in explaining future requirements and business process, and defining solutions, as well as evaluating existing gaps, and finally proposing solutions (Nah, 2002). Generally, the selection team should be individuals who have traits that have been tested in the past and have become useful in other projects.
Conclusion
Certainly, those who have been excellent in quality management, product launches, certification projects, as well as manufacturing initiatives make the best selection team. The preparation and selection of highly functional team is essential to the success of ERP system installation and implementation. Conclusively, replacing ERP systems and implementation is a tremendous factor in achieving competitive advantage among other competitors. Selecting the right ERP team to evaluate ERP systems is truly vital for company’s success.
References
Heizer, J. & Render, B. (2012). Operation Management. Upper Saddle River, NJ: Pearson.
Nah, F. (2002). Enterprise Resource Planning (ERP) Solutions and Management. London:
Springer.
Leon, A. (2007). Enterprise Resource Planning. New York: Wiley.
