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Steps in ERP System Implementation (Part 1)

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By understanding the benefits that can be obtained by using an ERP system, making this system a necessity that can not be avoided by a company. But often we hear the implementation of ERP systems in a company running full of challenges and not smooth.

Therefore, in implementing an ERP system, careful planning is needed, we try to share some tips on the steps needed in general in ERP system projects. Each step requires careful thought and planning, so we will describe the details of each step in a separate section.

The steps required in an ERP implementation project are:

1. Selection of ERP system (Software Selection)

before we start this project it is very important to decide which ERP system to use? some considerations in this phase are: (a) Are we going to make ( custom made ) or buy an ERP system that is already available in the market ?. (b) If you are going to buy an ERP system that is already available, will you buy the system provided by a local or international vendor?

The question above seems easy, but finding the answer has its own challenges. We often see ERP system usage failures occur in this step. This is because the Company or Prospective Users do not understand exactly what they want from the ERP system. On the other hand we often see the ill-fitting desires of companies or users, as if by using a new ERP system, all problems / challenges that have occurred so far can be solved by the ERP system. Therefore before we can determine which ERP system we will use the first thing we have to think about is? what are the target companies and users ( users ) of replacing this system . By thinking carefully about the needs of companies and users it will be easier in making decisions in choosing an ERP system. in this phase we see how important it is to determine the Expectations of the Company and Users after the use of the new system.

Mistakes that often occur also, company management sees that the ERP project is more to the MIS / EDP / IT team so, the vendor selection process is left to the team with technical considerations. This results in the selection of ERP systems leading to technical benefits such as the use of newer technology, rather than the functional benefits of the system to improve business processes.

Tips in the Software Selection Process :

(a) Make a checklist of operational challenges currently faced by the company, from the management level and checklist of each section or division.

(b) Make a list of the company’s requirements for system replacement. The company may not currently experience operational obstacles, but according to the company’s vision it will develop in the coming years, and the current system can no longer support this development.

(c) Give the second weight of the check list above so that we can know the importance of each operational obstacle that occurs and needs, making it easier to determine priorities.

(d) Whether the vendor selection process is for making (custom made ) or buying a finished ERP product becomes easier by checking the list above, where we can compare an ERP product with another not because of the many functions available in an ERP system, but to whether it fits our needs .

(e) The selection process is an activity that must involve all lines of management and each section / department / division. This is because the users of the ERP system are each division, not the MIS / EDP / IT division

Must be avoided

(a) The most common mistake in this phase is, Management and prospective Users do not make a check list of their needs. A common thing to do is that the MIS / EDP / IT department immediately brings together management and users with ERP vendor software to view product presentations. Finally, after seeing a number of applications, the decision taken was not documented but only based on intuition. In addition to the results of decisions that are not measurable, the expectations of management and users of the use of a new ERP system are also difficult to know which in turn is difficult to measure whether the implementation can be said to be successful or not.

(b) Management’s general perception that ERP implementation is an IT problem, so the selection process is left to the MIS / EDP / IT team.

continued to Steps in ERP System Implementation (Part 2) – Selection of ERP Implementor / Consultant

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