Key Decisions In An ERP Implementation

The implementation of an ERP system is always a difficult process. It's also a very long and tedious process.

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Even a simple project takes up to 18 months to complete. Larger the ERP implementation projects can span many years.

Perhaps the most important issue you will need to consider (often selecting the ERP software package) is the vendor who will be providing the hardware. There is some room for individual preference but generally the hardware environment is determined by the software package chosen. These days most the ERP systems are installed on client server hardware. Vendors which provide this kind of equipment include IBM, Unisys, Sun Microsystems, HP and Compaq. These are generally UNIX based systems that do come in different 'flavours'. So it's important to establish whether or not you all preferred hardware platform is appropriate for the ERP software which you have selected. Most ERP vendors have 'strategic alliances' with hardware companies. For example, SAP has over 18 'preferred vendors'. By choosing one of these suppliers you will go a long way in minimising the implementation risk.

The other key decision to be made is where you will source personnel with the right skill set to implement the ERP package. Here you have three options: you can use your own staff, or you can use staff provided by the ERP vendor, or can engage the services of an established the ERP consulting firm which specialises in the implementation of such products. This is the preferred option - but it's also the most expensive in the short term. Some of the major players include Accenture, Coopers & Lybrand, EDS, Ernst & Young and Deloitte & Touche. Again, checked with you ERP vendor as they may have an local arrangement with a consulting company in your area.

Using your own staff might seem like a good idea given the costs involved in outsourcing this to a third-party. This is 'false economy' because it is highly unlikely that your staff and have the required skill sets. Training them costs money and time. A more effective use of their time is to get your staff to document your company's business processes. This is a key task in the project and is best done by people who know your business. If you do use outside consultants, make sure that they transfer of skills to your staff so that they can maintain the product in the future.