When implementing an ERP system, a company must go through careful strategic planning and have a strong commitment from top management. Implementation can take up to 2 years or more, cost around $100 million, and is very difficult to turn back once the company is up and running. There are many concerns when implementing an ERP system. Some of these concerns include management commitment, redesign, integration, and choosing the right consultant for the job. To be successful in ERP implementation, the most important aspect is the commitment of top management. Management must be involved in all aspects of the implementation as the company will reposition and transform business practices throughout the implementation. The entire implementation consists of re-engineering business processes; if management abandons the project halfway through, the company can suffer a loss of millions of dollars. Top management must monitor the project during all changes because the success of the ERP system comes directly from the commitment of top management. ERP implementation is about the people who manage the system, not the processes and technology. The next important step is the reengineering aspect of the ERP implementation. ERP provides a generic business model for the company to follow. The problem with most companies is the fact that they don't fit the model directly. Since ERP software can only be customized to a limited extent, many companies have to try to adapt to the ERP model. Some business techniques are so unique that software customization is appropriate. However, software customization should be avoided whenever possible due to extreme costs. Int...... middle of paper ......are packages that offer global packages that include exchange rates, multiple languages and many other features for the global market. positioning. You can find more information about these projects on company websites or in company magazines. ERP is one of the fastest growing segments of the software market. The enterprise resource planning software market reached a revenue of $66.6 billion in 2003. ERP systems are considered the wave of the future for managing small and large businesses. The integration and communication offered by an ERP system allow many companies to benefit from implementing these systems. While the systems can be very beneficial to the company, management commitment, reengineering process, integration, and ERP consultant are all important issues a company must consider when implementing an ERP system.
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