The issue should actually be over: The introduction of a ERP software at a medium-sized company has been methodically researched, practised and almost standardised. Whether it's a short blog article or a comprehensive reference book, they all describe a more or less similar approach to implementing business software.
.. It's not unusual for an ERP project to end way over budget, ... and sometimes, a total disaster, not at all...
At the same time, the standardised ERP implementation nevertheless did not run smoothly and often not the desired results to run. A ERP projectt often ends up with a budget that is far exceeded, significant compromises in terms of the desired functionality and sometimes, the total disaster, not at all.
Mistakes and culprits
Often enough, however, the mistake lies in the selection of the ERP product and/or the ERP partner. What does not fit from the outset can often not be made to fit despite great effort and expense. The selection of ERP software also appears to be an exercise that can be mastered with the right guidance and a few standards.
Nevertheless, many companies are taking a path that, although many are following, often does not lead them to their goal or leads them to it via many complex detours.
A few basics
Some of the following basic knowledge may be familiar to some readers. However, knowledge of the interrelationships and challenges of an ERP implementation is not really universally available, especially in SMEs.
ERP - something different for everyone
Since the 90s of the last century, ERP has been an abbreviation that has a meaning for companies. Along with ERP, several other abbreviations for business software have come into common usage: MES, CRM, PPS, DMS, PDM, PLM and and and.
The functional transitions between these software packages are often fluid. And so the expectations of different people as to which functions and areas are covered by which software vary greatly. It is important to realise that, on the one hand, there is no fixed demarcation between the packages. For example, there is ERP software that covers many PPS (production control) functions or has integrated CRM functionality.
The more detailed the mapping of processes in the ERP software, the more "concreted" these processes often become.
Not everyone can do everything
At the same time, it is also important to bear in mind that it is not always possible to harmonise the building blocks in terms of strategic orientation, for example. CRM software should leave plenty of creative freedom to quickly adapt processes or leave them open. This is the only way to react quickly to changes in trends. An ERP system, on the other hand, always pursues the strategy of processes automatically and therefore in a standardised way. The more detailed the mapping of processes in the ERP software, the more "concreted" these processes often become.
The paradigm of the standard
It seems like a platitude. The idea of a standard software is of course based on an assumption: there are processes in companies that are so similar that they can be automated for many of them in the same way in one software. The idea was further developed by assuming that there is a best practice solution for many processes. In other words, exemplary procedures that achieve the best results. An ideal ERP software therefore has such best practice processes in its belly.
The approach of high standardisation, especially in the SME sector, is opposed to high Specialisation of the companies. Specialisation is necessarily reflected in special or even unique processes. In many cases, it is precisely this specialisation that gives the company an advantage over its competitors.
Standard for specialists
..A standard software for mapping special processes...
The claim that has developed from this: A standard software for mapping special processes.
The ERP industry's answer to this seemingly excessive demand. Configuration, also known as Customization called. In other words, the ability to customise the standard software for the specific needs of many different companies - without creating a special application and losing the benefits of the standard.
The complexity behind this task then also characterises the operability of the configuration. This usually requires specialists.
The other solution for the diverse requirements placed on a standard ERP is simply a large number of functions. The number of functions in a package can be seen in manuals and accompanying literature. These often run to several thousand pages.
The ERP consultants
As a rule, an ERP system is not software that you install and then start using. Normally, a user is overwhelmed by this task, despite online help and a manual as thick as a catalogue. This is where the ERP consultant into play. Experts who do and have done nothing else but deal with an ERP package. Depending on the size and type of software, individuals focus on individual areas and/or modules.
The specialisation of individual consultants may depend not only on the level of knowledge of the functionality of the different modules. It always goes hand in hand with knowledge of the typical processes in companies. As the typology of these (depending on the industry) varies greatly, a certain often requires the consultant to have a certain proximity to the industry. A lot is required and nothing that can be learnt overnight.
more on the subject:
ERP selection - if it were that easy / Part 1
ERP selection - if it were that easy / Part 2
ERP selection - if it were that easy / Part 3
ERP selection - if it were that easy / Part 4
ERP selection - if it were that easy / Part 5
