Understanding the dynamics of ERP implementation

Achieving a successful ERP implementation requires for a companys serious commitment and an eminent investment. The cost for implementing ERP systems is basically influenced by company size and intricacy level of the ERP project. It is possible that various companies use the same ERP system but through several approaches. Then again a company may try to carry out an integrated ERP software application following a single procedure. Regardless of the types of methodologies and procedures used in implementing ERP, there are basically five common factors that could determine success of implementation.

These determining factors are project planning, information requirements, architectural devise, staged approach, data conversion, and organizational commitment.

Project planning allows a company to evaluate and re-evaluate all of projects integral components and development stages. This involves specific tasks, such goal setting, identifying significant business requirements, setting up lead project teams, and estimating overall costs of the project.

The architectural devise involves selecting and deciding the most suitable IT technologies for the company.

Information or data requirements refer to a precise level and comprehensive details of a companys business requirements. Identifying data requirements in the early stage of planning is very important to avoiding needless mistakes and resources to be wasted.

Staged approach simply refers to dividing an ERP project into manageable specific tasks by defining pilot agenda and short-term goals. Pilot project can show ERP benefits and provides some practical insights on ERP implantation.

Data conversion is using an effective RDBMS (relational database management systems) to storing and managing a companys various types of data.

Organization commitments basically reflect how an organization fully understands ERP and its benefits to its individual functional departments.

A company basically ensures itself a successful ERP implementation by conscientiously considering the above factors in all of its undertakings.