ERP Software and Business Strategy
The effectiveness of the multi-faceted ERP software package is unquestionable, but there is no fixed formula or a well defined methodology that will guide the organization to develop a business strategy to extract the maximum benefits from ERP. It is a tough situation for the business executives and the management in properly aligning the ERP with the business strategies. But there are some standard principles and result oriented techniques, which can be applied to most of the business organizations to frame a business strategy to derive the ERP software objectives to the best. The applications of the ERP software must be linked directly to the different entities of the business organization to make the proper use of ERP.
ERP applications streamline all the major functions of the enterprise producing a realtime visibility of the business and increasing its productivity. It is always tough to strike a balance in managing the huge costs and the inherent risks involved in ERP implementation with the immense potentiality of the software package, which contributes significantly in achieving business goals. Implementation of ERP puts the organization under stress. The ability of the organization to assimilate the changes related to ERP and its readiness can either lead to tremendous success or produce turmoil that will readily affect the organization's strategic performance.
Strategy of ERP Implementation This is perhaps the most important business strategy, which every organization must consider seriously, as the success and the failure of ERP execution is totally dependent on the implementation strategy. To achieve success in ERP implementation, the organization should set up well developed project plans by expert consultants and should have an extensive repository of various software tools that will collectively aid in an organized and successful ERP implementation. Implementation of ERP should come under three major factors like Vital, Essential and Desirable (VED). The vital things must be considered first followed by the other two. ERP implementation must follow some basic rules, but it is not necessary that it should be restricted within these.
1. Implementation should be directed towards the AIM of the organization. 2. It must be time bound with a realistic approach. 3. Carrying out implementation in different phases through a well chalked out project plan. 4. Change Management Program (CMP). 5. Prior training to the users to make the software applications user friendly 6. Provide supporting tools like Web-based project management, automation tools, web based issue resolution system and other internet based tools that help in better flow of information.
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