By its very nature, an ERP system is comprehensive and complex. It touches on every department, business activity, function and transaction.
Dallas, TX (PRWEB) February 26, 2014
Implementing a new Enterprise Resource Planning (ERP) system or modernizing an existing one through system integration is among the most difficult things any company can do. Getting all of a company’s various data systems to efficiently, accurately and instantly share data takes great care and planning.
Timothy D. Garcia, founder and CEO of Apptricity, provider of mobile enterprise software solutions, has outlined three rules of thumb to help companies effectively implement and integrate their ERP system.
1. Look before you leap. “By its very nature, an ERP system is comprehensive and complex,” says Garcia. “It touches on every department, business activity, function and transaction. That means augmenting an existing ERP system with such capabilities as inventory management or supplier integration requires an equally comprehensive approach to planning. Every possible need or risk that could be encountered must be identified and addressed in the planning process. Failure to do that leads to frustrating and extraordinarily expensive delays as programmers and managers stop their progress while figuring out ways to solve unforeseen problems.”
2. Build the right team. “If there are too many decision-makers involved in the planning and development of a new or modernized ERP system, the end result is likely to be a system that can do several things only moderately well – and often at a much higher cost than anticipated,” said Garcia. “But if the planning and development of a new or modernized ERP system doesn’t include enough of the right executives and professionals, the result is likely to be a system with gaping holes. Select a mix of technical and frontline workers to serve as key players that can properly define the scope and budget of an implementation. That will help keep the natural temptation and pressures to expand the project’s scope and budget under control.”
3. Weigh your ERP software options wisely. “Many companies choose a vendor to design and install a system based on the promise that it is a proven, bolt-on system that can be customized to meet the company’s specific needs with the existing software,” says Garcia. “The problem is that instead of bolting on a proven system and customizing 15 to 20 percent of it, what typically happens is that 50 to 85 percent of the bolt-on ERP system ends up being customized. That dramatically inflates the cost of the project. It also creates lengthy delays and off-the-chart levels of frustration throughout the company.”
The key to avoiding these negative results goes back to the planning process. Once a company determines its scope and budget for a new or upgraded ERP system, senior management should firmly commit to it. That will require making some hard decisions about what to customize and what stays generic.
Fortunately, commercial off-the-shelf solutions (COTS) have come a long way. Organizations in need of automating a range of tasks used to require a lot of customization or special product add-ons. Today, stress-tested, proven off-the-shelf solutions can handle some of the most difficult jobs, intuitively and with a minimum amount of changes. Adopting such a solution is often far less expensive than rewriting millions of lines of code.
To learn more about Apptricity’s enterprise software solutions, please contact an Apptricity representative at 214-596-0601.
Apptricity Corporation provides mission-critical supply chain management and integrated finance solutions to Fortune 500 companies, small and midsize enterprises and government organizations across the globe. Apptricity software and solutions mobilize any enterprise with unprecedented levels of real-time information and business intelligence so management has visibility into every action and transaction within the enterprise and among its partners, customers and suppliers. Jetstream, our revolutionary platform, enhances legacy enterprise applications and extends the value of information technology investments. Apptricity Jetstream, Apptricity Smartfleet and Apptricity’s other applications address the universal objectives of business, government and the military with accelerated business processes and command visibility. For more information, visit http://www.apptricity.com.