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ERP stands for enterprise resource planning. It’s software that manages a company’s financials, supply chain, operations, commerce, reporting, manufacturing, and human resource activities. We provide small and medium sized service and retail organizations with advisory services in selecting business management software / ERP software that is an appropriate fit for their needs and scale of operations.
ERP software applications are important to companies because they help them implement resource planning by integrating all of the processes needed to run their companies with a single system. An ERP software system can integrate planning, purchasing inventory, sales, marketing, finance, human resources, production and more.
One of the key requirement of ERP implementation is explaining the requirement of the organisation and varied levels of management, discussing the flow of information through various channels of softwares and ensuring that the outcome of the data processing is meeting the requirement of management, operator and regulator.
We provide software recommendation and implementation methodology to support clients in selecting and implementing enterprise software packages.
Our priorities are to enable the customer to realize gains that should ensue if the right product and right implementation is done.
We develop system requirements and conduct analysis of systems capabilities, systems vendors and the market for implementation services. We evaluate the resources necessary for and cost of project implementation, develop a strategy, determining the scope of implementation and integration, scheduling and resource planning.
We can assist you in evaluating the composition of the team preparing the “go live”, as well as measures taken to negotiate critical situations before, during and after the launch of a new system.
We assess the execution of “go live” processes, including preparation, consultation and change readiness, managing risks, resolving problematic issues, planning responses in case of contingency situations, managing project benefits, planning the “go live” and subsequent monitoring. We also assess the readiness of the personnel, business processes and infrastructure for the launch and the implementation of changes.
Our services in this area include:
• Managing/Assigning the project team
• Project planning and control
• Developing and supporting the organisational change
• ERP related corrections according to the business structure
• Training of system users
• Establishing of effective project communications
• Managing work quality
ERP auditing is the process of testing and reviewing ERP functions to ensure they’re working as efficiently as possible. The objective is to determine how adequately individual ERP modules are solving problems and streamlining workflows, with a view to make improvements
Implementation is only the first step in the ongoing task of managing and refining ERP software. Following go-live, regular maintenance and auditing are essential in ensuring that the system continues to deliver the results
Carrying out an ERP audit is essential for the following reasons:
- Ensures data accuracy
- Safeguards compliance
- Error avoidance
• Better reporting tools with real-time information
• A single source of truth – one integrated database for all business processes
• Better access to customer information
• Faster response times
• Improved on-time delivery
• Improved order accuracy
• Better reporting tools with real-time information
• A single source of truth – one integrated database for all business processes
• Better invoicing and better collections tools to bring cash in faster
• Faster cash means more cash on-hand for the business
• Improved inventory planning.
• Better procurement management.
• Better customer service.
• Improved vendor relationship management.
• Dedicated security resources
• Avoid installing malicious software
• Data distributed across multiple servers
• Automate manual or routine tasks
• Implement smarter workflows
• Gain efficiency
• Effective demand forecasting and lean inventory
• Reduce production bottlenecks
• Transparency through the business
Successful ERP implementations will vary slightly depending on verticals and business requirements, but the basic steps remain similar regardless of the industry.
The implementation life cycle outlines the stages of ERP implementation from start to finish. However, it’s important to remember that the ERP life cycle lends itself to continual improvement by fine-tuning the technology to serve better business processes that support specific objectives. Therefore, some believe that the implementation life cycle ends only when the ERP is shelved for a new solution:
ERP implementation stats describe various aspects of software implementation that reveal important ERP and implementation processes.
• Nearly 50% of ERP implementations that do not involve implementation oversight by a third party, fail the first time around.
• On average, ERP implementation takes 30% longer than a company initially estimates
• Nearly 74% of ERP projects require more time than the business expected
• 65% of implementation budgets are exceeded due to modifications for improved usability
• 64% of all ERP implementations end up going over budget due to poor planning or selection of the wrong software system for the business
• Manufacturers save an average of 22% on administrative costs through ERP
• Manufacturers save an average of 23% on operational costs through ERP
• ERP systems increase on-time delivery by 24%
• A 2018 Oracle study reported that 76% of businesses have already transferred processes to the cloud
• 58% of businesses have already integrated AI into ERP or are planning to do so
Small- and midsize businesses (SMBs) often work within tighter budgetary restraints, requiring more precision and discipline for implementation compared to enterprises with larger budgets.
Following steps cans be taken to ensure that the implementation results in the expected benefits -
• Obtain full implementation support from the business owners, department heads, and managers first.
• Define your business objectives, business processes, and the IT requirements that support your business goals.
• Outline the expected business benefits to be derived from the ERP.
• Ensure that incoming ERP is compatible with any existing systems that will remain in place.
• Train staff on the new system before full implementation takes place.
• Facilitate communication within and between teams and departments.
• Focus on quick, short-term wins before attempting larger victories.
Planning an ERP implementation should begin with leadership from the top of the company, starting with a clear formulation of the business objectives which the organization needs to achieve.
Once business objectives have been identified, it's important to relate the business processes that achieve these objectives to the technological solutions offered by an ERP. A tightly-controlled ERP implementation plan will avoid scope creep by maintaining a strong focus on business objectives and the ERP functionality needed to support those objectives, thus avoiding unnecessary features.
Recruiting managers and department heads to help with planning may provide additional value by relying on the specialized expertise they've gathered in your industry and in their particular operational areas.
After your organization completes the software selection process to choose an ERP system that aligns well with your particular business requirements, you'll need to partner with an implementation team. Whether you're dealing with an independent contractor or an in-house implementation team provided by the software manufacturer, you'll need to include them as part of a detailed plan to install the new solution, transfer data, and test the ERP before you go live.
ERP implementation failure still occurs, even if the rate of failure has been curtailed over the past few years. The following list represents common obstacles to a successful ERP implementation. All organizations should strive to avoid these pitfalls.
1) Failure to set up realistic plan
2) Failure to embrace change
3) Lack of commitment by key stakeholders
4) Lack of competent project managers
5) Failure to modify or align the system with business processes
6) Ignoring Common Application deficiencies
7) Overreliance on Consultants
8) Burdening the implementation process on the Finance & Accounts Department
The cost of an ERP implementation will be different for every business and organization. The price for software licenses or a subscription is a part of the overall capital commitment, with implementation costs adding to the total cost of ownership.
Company size is a major predictor of ERP implementation cost, with most small businesses operating under tighter budgets compared to bigger firms.
ERP implementation cost variables include:
• Software customization or business process re-engineering costs
• Public cloud, private cloud, or on-premise implementation
• Data cleaning and data import costs from legacy systems
• Any business productivity disruption during the changeover from the previous system to the new ERP
• Human resources costs, including hiring an implementation specialist firm to help with implementation or covering for staff pulled away from typical tasks due to implementation duties
• Training for end-users, department heads, managers, etc.
• Additional network security and intrusion countermeasures, including disaster recovery plans for ERP
• Hardware upgrade or configuration costs
• Audits performed on current processes for alignment with business objectives
• Work required to comply with different compliance regulations, along with other standards demanded by specific industries or business sectors
• Additional business software integrations, such as AutoCAD, Office including different types of productivity programs
• Testing performed to ensure ERP stability before going live
• Negotiations taking place during the software selection process regarding the implementation
The biggest risk related to ERP implementation problems involves losing money and time due to serious issues with software and hardware installation and setup.
The risks extend to the survival of your business. Incidents with data management can destroy or distort the valuable data which underpins business operations.
Incorrect cleaning and importing data from multiple databases may result in unintended consequences in the new ERP system, negatively impacting business operations.
Your data's security is paramount to your business's continued operation, especially when regulations demand compliance with procedures to protect the sensitive private data from malicious hackers and intruders.
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