Enterprise Resource Planning (ERP)

An ERP system is an attempt to integrate all functions across a company to a single computer system that can serve all those function's specific needs.

In other words, ERP signifies the techniques and concepts employed for integrated management of business from the view point of effective use of resources and to increase the efficiency of an Enterprise.

Different benefits of ERP system

1. Business Integration
2. Flexibility
3. Better analysis and planning capabilities
4. Use of latest technologies

Functional Modules of ERP System

1. Financial module
2. Manufacturing module
3. HR module
4. Materials Management module
5. Production Planning module
6. Quality Management module
7. Purchasing module
8. Marketing module
9. Sales and Distribution module

ERP Implementation Life cycle

The different phases of ERP implementation life cycle are :

• Pre-evaluation screening
• Package evaluation
• Project planning phase
• Gap analysis
• Re-engineering
• Customization
• Implementation team training
• Testing
• Going live
• End-user training
• Post-implementation

Critical Factors for ERP implementation

1. Selection of right package
2. Commitment of top management
3. Participation and dedication of the future users
4. Support and cooperation of the IT personnel
5. Development of interfaces of current operational system and those under development
6. Effort of consultants. The consultants should have respect for the company's know-how and work-culture
7. Spirit and collaboration on the part of all

Why do many ERP implementation fail?

Some of the most common reasons of ERP implementation failure are :

1. Lack of top management buy-in, commitment and support
2. Improper planning and budgeting
3. Use of wrong ERP tool
4. Lack of training
5. Work culture of the organization