Research on enterprise resource planning have shown that the flaws in ERP implementation have resulted in the vast majority of companies failing to unleash the benefits of ERP softwares.
This has led to lot of problems right from litigations to misinterpretations in business media. The vendor is always taken aback because the entire community blames him and the products. Enterprise resource planning phases are very important in this regard.
Probable reasons behind Failure
The actual problems lie in choosing the right software for your company. If this is either taken for granted or done hastily then the chances of ERP Success are rare. Some of the reason for failure could be exorbitant costs, inadequate training, longer time, and failure of strategy and the lack of attitudinal change on the part of employees to accept and manage change. They have to analyze "What companies use enterprise resource planning?"
- Very few companies succeed in the first instance after implementing ERP.ERP is not a fortune but a technology that delivers results only after effective execution of the laid down procedures. Therefore to merely bank on it will not suffice to obtain any results. What is more important is the implementation of the necessary changes in the organization so as to combat ERP.
- ERP is not an answer to the errors in business plans and tactics. In fact ERP consultants are reluctant to attend to it because they don't want it to disturb the purpose of ERP. It should therefore be understood that ERP is an I.T. tool that assists and facilitates the business process by being a part of it. On the contrary it is misunderstood that ERP can rejuvenate the business. The answer to the popular question "What companies use enterprise resource planning?" will help in clearing this trouble.
- ERP gap analysis and business process reengineering should be performed properly. This will ensure that other steps are followed systematically and in accordance to the company's need. They are otherwise referred as enterprise resource planning phases.
- IT facilities in the organization should be at par with market standards and international reputation. This will enable the operation people to constantly modify and update as and when it is necessary in order to stay in tune with the competition. Research on enterprise resource planning will reveal this.
- The process of ERP implementation should be carried on by a team of competent personnel so as to ensure perfection, accountability and transparency.
ERP should become a part of the daily routine. If that does not happen then the company cannot expect any fruitful results inspite of having followed the above mentioned steps meticulously inorder to ensure the successful implementation of ERP and no amount of successful planning of enterprise resource planning phases will help in this regard.
There is another important issue that needs to be addressed in this regard. Even after successfully implementing and setting ERP right for action the trick lies in combining it with the business process. The restructuring should also address issues like finding solutions for the current business problems. It should not be done with an illusion that ERP will take care of everything. Unless these fundamental problems are solved the functioning of ERP will do very little to help connectivity and facilitation in business. A choice is to be made from ERP implementation models after knowing "What companies use enterprise resource planning?"
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