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Organization of every sector must understand that ERP implementation is a project which must be taken seriously. Organization must go forward with proper planning and strategy before starting the project. Implementation of Enterprise Resource Planning or ERP software is a huge undertaking. If it is done correctly, then an organization may benefit greatly but, if done wrongly, then organization might spend money for nothing. Building an ERP implementation strategy in a phased approach would ensure that organization can accomplish set goals in an effective manner. It is nearly impossible to know about the success of ERP implementation strategy without having set goals that may tell about how far the project has come. Every organization must calculate cost of ERP implementation versus benefit analysis. Cost of implementation varies upon on size of ERP implementation. Indeed organizations would have to pay for license and consulting but, they also have to spend for maintenance of software. Maintenance of software includes updation as well as necessary upgradation whenever needed. Organizations must work-out on the needs of the system, and then move forward towards ERP implementation. After taking decision, organizations have to choose a product which is suitable for their business. Suitability of the software to business, cost, support seller would provide, future upgrades, and availability of consultants for support in future are some of the features which must be taken under consideration before choosing a product. The most useful feature of software is that, it can be tailored to suit a business needs which is referred as customization. It can prove to be helpful in many ways, for example it can plug the gap from business solution perspective. Although, customization is a useful feature of the software, but organizations must avoid it or at least use it to a minimum, because there is an additional cost for customization. Also, it must be upgraded along with the entire software which would incur extra cost in future. And, any change in the business process would affect customization, which means it would require enhancement and thereby cost. Organization should have a steering committee, which lead project towards successful ERP implementation. The software must be chosen by future users for successful implementation of the software. Also, it would build zeal in them to go through the training sessions, and help them to understand the system more easily, since it has been chosen by them. An ERP implementation project can have different vendors associated with the project, for example hardware, network, operating system, and server. Organization can have a project management office or PMO, which would report the day to day coordination of the project to the steering committee. This will help committee to have proper control over different vendors. Steering committee would choose right ERP software implementation methodologies for a successful implementation. Different methodologies are suggested by the consulting services after doing thorough research on every aspect of the business organization. Proper planning and strategy, application of enough resources, and consulting a good service provider are the key features of successful ERP software implementation. Read more about ERP Implementation Best Practices. Also know ERP Software Selection Criteria. Read about SAP R/3 Architecture.
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