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Front
Ending ERP A Method of Approach
Integrated Appraisal
A
thorough evaluation of the organisational preparedness for an ERP system is critical
before venturing into ERP. This may mean an Integrated Appraisal of the organisation to
determine the current status, profit potential, future strategy and action plan to achieve
and sustain competitive advantage. Business Process
Reengineering
Once
the blue print for progress is ready, a business process re-engineering (BPR) exercise is
called for to determine the scope for improvement in the existing processes to achieve
dramatic improvements in the total costs. These new processes (after BPR) form the base
line for implementation of ERP. Organizational Cultural ChangeThe
organisational change for internalising the new processes needs to be addressed before,
while implementing and after implementation of ERP, to ensure that ERP succeeds. ERP is a
change in the way of life in an organisation. A radical change in organisational culture
forms the backbone for any ERP implementation. This
is required at all phases – planning, implementation & post implementation, to
derive the maximum benefit from ERP. Quantify the benefits due
to ERP in tangible terms
ERP is a means to an
end. To make a success of ERP one has to be clear about the goals. ERP must also be
treated like any other capital investment – ROI and IRR must be specified and the
decision to implement must be based on these factors. This is not underrate the intangible
benefits but to create a sharp focus for the entire organisation on why ERP and the
measures of success.
Management Inputs
The entire process
– Integrated appraisal and BPR – is best mapped prior to embarking on an ERP
implementation. The management input at all stages of ERP process is critical for its
success. This can be provided from internal resources of the firm (a multifunctional team
identified for this and devolved of operating responsibilities) and sometimes in addition
to the internal team by an outside Management Consulting firm. The degree of accuracy,
thoroughness and professionalism brought in by the consultants will complement, accelerate
and expand the firm's efforts.
Prepare the organization
before implementing ERP
It is important to
ensure that all the critical inputs required are in place before implementation to make a
success of ERP. This will enable an organization choose the ERP package best suited for
its needs. The cost of customisation will be minimised and the organisational change
required for making a success of ERP is already in place. About M K Raju Consultants
Private Limited (MKRC)
We
are a management consultancy organisation of 25 years’ standing and have dealt with
over 500 clients in MKRC will be
happy to assist clients considering ERP to evolve a clear action plan with quantifiable
results. MKRC can help a client during all stages of ERP – starting with the choice
of the best ERP package including planning, implementation, and post implementation
stages. MKRC will enable a CEO to answer hard questions, such as: ·
Why ERP?
·
Does
my organization need ERP? ·
Is
the organisation ready for ERP? ·
What
are the tangible benefits? ·
How
do I know / measure whether ERP has helped me? ·
What
is the ROI and IRR achieved vis a vis the plan due to ERP?
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