Implication of ERP systems on Business organizations:

Enterprise applications have been in existence for a very long time. The advancements of enterprise applications are none other than the popular Manufacturing resource planning, material resource plans and the latest throb enterprise resource planning. The only distinguishing feature of one after the other is that they undergo improvement constantly and out beat in some aspect.

Some of the enterprise applications are as follows

●      Management Information Systems
Management Information Systems are the systems that help in canalizing the data and processing them into information. This includes systems and operations as well. It is important both from the academic and industry point of view. The functioning of management information systems is like that of a computer. Infact management information systems are itself an important component for the working of a computer. It is for this reason MIS is citied to be an important factor study in Information technology and engineering. Management information systems have to be implemented after careful planning.

●      Information Integrated Systems
They are helpful in ensuring that the information processed reaches the concerned persona and in the proper time and place. They are instrumental because if they are not properly done it defeats the very objective of management Information Systems. They are implemented by way of discussing with committees. Companies do the mistake of neglecting their suggestions or dropping them (the committee members) halfway. It is strongly advised to refrain from both.

●      Executive Information systems
This is an enterprise application that is aimed at helping the executives in taking decisions quickly. This is strategically designed in a manner that it provides the required information to the executives and senior managers so that they can immediately act upon or forward the proposals if any to the board of directors in the company. This system is designed in such a manner that it helps the executives by conveying it in a form understood by them.

Example:-

Here are few general rules to remember when selecting an ERP vendor. we should keep these issues in mind throughout your selection and evaluation process:

●      There is no such thing as a “one size fits all” ERP system, since each should be tailored to the needs of the individual company.

●      For many, risk mitigation is a priority in the ERP vendor selection process. This is a valid goal. Careful planning, clear communication rigorous vetting of candidate vendors is a good initial step in minimizing the risk of an implementation disaster.

●      Realize that getting people to change how they do their daily jobs is the most formidable challenge in getting any ERP system successfully implemented. That’s why it is critical to have high levels of involvement in your company from the beginning.

●      All products have specific strengths and weaknesses that are more dependent on your objectives than they are on technology.

●      Most systems are either built to specialized needs or have evolved from a specialty application, meaning they are naturally stronger in some areas and weaker in others.

●      Beware of any software vendor that says their suite of applications can totally fulfill all of the unmet needs your organization has for an ERP system. There is no perfect fit—every company’s needs are slightly different and customization is always required.

●      You might need help. Its fine to solicit help from a third-party consultant, but be diligent about who you choose. Be sure that they really are totally impartial, vendor neutral and objective. Many can bring certain biases or prejudices to the party.

●      Beware of turnkey implementation promises. You should be heavily involved in the implementation so that you can be sure you will derive the value you paid for.

●      Your final selection will more than likely come down to certain intangibles, such as your level of trust with one vendor versus another.

●      Ask for several references in your specific industry, and then visit those implementations (if possible) in person to see how they are using the ERP system to attain their goals.

●      Finally, there is your team. Remember that an ERP system will touch or affect almost everyone in your company at some point. Almost every business function will need to interface with, be directed by, supply information to, or extract decision-support information from your system.

ERP Selection Methodology refers to the process and steps you take to evaluate and choose a new Enterprise Resource Planning System.

Phase I – Strategy and Requirements Definition

This phase develops the vision for the future ERP system taking into consideration the key drivers for the company from both inside and outside the company.

The following are the major tasks that occur in this first phase:

●      Develop a clear understanding of your current business and information systems

●      Interviews are scheduled and held to understand the company’s future plans and focus

●      Working with top management, develop the top four or five strategic objectives required to achieve the company’s plans for the future

●      Review technology status and trends based on your understanding of the “best of class” organizations

●      Develop a high-level “Future State” model that describes the attributes of the future system required to support the company’s vision for the future.

●      Develop a detailed list of specific and distinctive requirements that must be supported by the new ERP software system

●      Develop a Long List (8-10) of ERP Vendors based on initial understanding of your requirements

●      Research each vendor’s product functionality and features as well as key vendor issues/deficiencies to arrive at the short-list finalists

●      Identify the two vendors who shall provide an end-to-end demonstration of how they will support your future vision

●      Optionally, evaluate ERP software Value Added Resellers (VARS) for each candidate software to participate as potential implementation partners

●      Based on the requirements and business processes, a demonstration script is developed

●      Optionally, develop a high-level business case to justify the investment in a new ERP system

Phase 2 – System Evaluation and Selection

This phase is the detailed analysis and comparison of the two software vendors chosen above.  As project manager ensure that the information provided by the vendors during their demonstrations, functionality and features discussion, hardware configuration recommendations and reference assessment is as accurate and factual as possible.

During the vendor evaluation phase, the following key tasks need to occur:

●      Review the demonstration script with the selected vendors

●      Create scoring sheets based on the demonstration script

●      Manage the vendor demonstrations closely.  Work to avoid exaggeration and embellishment and keep the demonstrations on course

●      Score and rate the vendors

●      Conduct reference checks

●      Visit and interview vendor customers at their site

●      Rank the two vendors based on all the relevant business and technical criteria

●      Review vendor proposals and determine key areas for negotiation

●      Hold software vendor contract negotiations

●      Prepare a high-level implementation plan, schedule, and budget

●      Communicate to vendors the selection outcome