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Based on our observations, there are three commonly used ways of installing ERP.
The Big BangIn this, the most ambitious and difficult of approaches to ERP implementation, companies
cast off all their legacy systems at once and implement a single ERP system across the entire company.
Franchising strategyThis approach suits large or diverse companies that do not share many common
processes across business units. Independent ERP systems are installed in each unit, while linking
common processes, such as financial book keeping, across the enterprise.
Slam-dunkERP dictates the process design in this method, where the focus is on just a few key
processes, such as those contained in an ERP system's financials module. The slam-dunk is generally for
smaller companies expecting to grow into ERP.
Training
Integration and Testing
Data conversion
Data analysis
Consultants Ad Infinitum
Replacing Your Best and Brightest team
Implementation Teams Can Never Stop
Waiting for ROI
Post-ERP Depression
Travel and expenses for team members
Time that senior management is involved in decision-making and conflict resolution
Critical success factors?
SAP IS Retail
What is ERP?
Enterprise resource planning software, or ERP, doesn't live up to its acronym. Forget about planningit
doesn't do thatand forget about resource, a throwaway term. But remember the enterprise part. This is
ERP's true ambition. It attempts to integrate all departments and functions across a company onto a
single computer system that can serve all those different departments' particular needs.
Poor planning . organizations should conduct an internal audit of all of their processes and
policies before choosing an ERP system
Not properly vetting ERP vendors. Always ask for references. Request the names of at least
three companies "who are in your business sector, who you can contact and discuss the software
with, then call and discuss features, functionality, and challenges,"
Not understanding or using key features. creating a master list with all features, tracking
usage, and periodically reviewing the list to determine which features are being used and which
are the most helpful
Underestimating the time and resources required. The time involved can be estimated by
dividing the cost of the software by 100," he explains. "For example, $20,000 for software will
take approximately 200 man-hours or five weeks to implement using a certified consultant.
Double that number if you plan to self-implement with minimal professional assistance."