Tuesday, June 06, 2006

ERP Justification: Is it Worth it?

There's a discussion on IT Toolbox about the benefits and disadvantages of ERP solutions that is worth examining.

Some key points this jogged for me (and a few I've added) are:

  • ERP improves enterprise visibility, collaboration, and integration. That's the chief selling point of ERP. If that's what your organization needs, ERP sounds like the right solution.
  • ERP does NOT typically improve individual efficiencies, and should not be sold as such. It's important to set the right expectations up front on just what an ERP system will offer the company and what it will not offer most individuals.
  • ERP can help achieve cost reduction IF it's replacing many manual steps.
  • It's not a bad idea to offer SOME predetermined set of key pet reports to decrease resistance. Aside from that, scope should be kept tight.
  • It's important to have someone running the ERP project with the clout to say no when everyone wants to retain their current way of working (getting past the "I've always done it that way" syndrome).
  • It's important to ask: Does the company want and need to operate as an enterprise? In most cases, the answer is yes.

However, until the organization reaches "enterprise maturity," chances are it won't realize the full benefits of ERP. On the other hand, an ERP system can help facilitate an organization's maturity in that direction, if that's where they choose to go.

Just some food for thought. I'd be interested in others' experiences and thoughts on the topic.

ERP benefits and disadvantages - ITtoolbox Groups

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