Extract from ERP 2009 Supplement, Sunday Business Post, May 10th 2009
The IT Industry is discovering that enterprise resource planning (ERP) if properly applied, can bring great results. It may be permanently fixated on the next big thing, but some technologies have stood the test of time. Enterprise resource planning (ERP) is one such solution.
Company-wide reach
Whereas some business software performs a single task, what makes ERP different is its reach throughout an organisation, according to Frank Crewe, European Business Development Director with BSM Ireland.
“I would define ERP as finance, manufacturing, sales, human resources, production, inventory and purchasing. The business processes are tightly integrated, supported by an integrated system,” Crewe said. “If you want to draw a boundary, it would be the core internal processes as opposed to what reaches out to the market-place – such as your suppliers or customers.”
A typical business process might involve receiving customer orders, fulfilling these orders through the warehouse, delivering the product and invoicing the customer for the value of the order.
Ensuring success
Breaking a project down into manageable pieces can increase the chances of success, Crewe said. “You have to have mile-stones: project deliverables working towards an end game. You shouldn’t ever start an ERP implementation without a business strategy and an IT strategy,” he said.
“ERP projects are complex and will involve a project team consisting of internal resources and external consultants provided by the ERP vendor. Other external consultants or contractors may also be involved to supplement the internal project team, where there are insufficient resources to fill all the roles internally. Good project management should define the governance structure with clear roles and responsibilities", said Crewe.
Other key requirements include a detailed project plan to ensure all tasks are managed effectively, exit criteria for each phase of the project, constant control over project risks and a plan for change management and communications. Crewe recommended that the steering group and project team hold regular scheduled meetings.
Embarking on an ERP project shouldn’t be taken lightly. A lot depends on a firm’s appetite for change, but a clear focus on the goals of the project will greatly improve the potential for a success outcome – and a better business as a result.
For further information on ERP systems, please contact:
Frank Crewe
Tel: + 353 (0) 91 746900
E-mail: frank.crewe@bsmconsulting.co.uk
Linda Davey will respond to your query.