Organizational Challenges in Successful Implementation of Enterprise Resource Planning

Strategic Solutions

Enterprise Resource Planning for ProductivityEnterprise resource planning is gaining a significant role in every organization. Almost every fortune 500 companies have already implemented enterprise resource planning software in their environment and they are using the software efficiently to increase their production. Enterprise resource planning software is very complex. It has lots of tools and techniques involved in it.

To successfully implement an enterprise resource planning software, the company should clearly mention its requirements to the vendor and there should also be sufficient software managing staffs employed by the company solely for operating and maintaining the ERP applications.

Studying enterprise resource planning requires studying different areas. This is not as simple as to learn single software. There are many areas involved in its study which varies from the implementation of the software, outsourcing of ERP, studying impact which it can cause to the international business economy, job opportunities, etc.

The main for the development of ERP is ultimately to increase the productivity and value of a company by assisting the company in fine tuning the manufacturing process. The first software which was implemented for a similar kind of management was named as ‘Material resource planning’ (MRP) in 1975. And later by incorporating many new technologies MRP got evolved into enterprise resource planning (ERP).

The enterprise resource planning systems will collect the data related to the company and stores into a single repository. It also takes into account the several processes and the data sources pertaining to the company. For implementing these data and product services, various software and hardware modules will be used. These hardware and software modules are integrated to form a single enterprise resource planning system.

enterprise resource planning solutionIf the ERP system is planned and implemented successfully then it is undoubtedly going to serve the company is raising its productivity. But there are many challenges involved in planning, implementing and integrating the ERP system.

The challenges involved starts from the point of selecting the right vendor. Failure of enterprise resource planning can never be analyzed or traced back. So, before implementing the software, lots of planning should be done. Also, the requirements posed by the vendor should be fulfilled completely. The vendor also should be in a position to provide successful implementation within time and the quality should also be good.

Some of the other challenges are lack in knowledge level of the employees. The management should thoroughly understand the process and should choose the right vendor. Lack in expertise might cause huge loss. Some companies limit the budget of implementing ERP software to a very minimal level. This in turn will result in less customization and templates.

The real usage of ERP software might be in a toss. Sufficient information can’t be managed and leading to very minimal information to be available. The other major challenge which every organization faces is the lack of support staffs. For a successful ERP implementation, there should be sufficient number of employees assigned by the company to work on the tools. If the companies are able to overcome these challenges, then certainly ERP is going to yield them a lot of profit.

Strategic Solutions