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Different Methods of Implementing ERP Software

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What Are the Methods to Implement ERP Software?

Enterprise Resource Planning implementation can cater to myriad business functions of a business and provide an integrated platform for seamless information flows between these various components. Companies engage several hours of their strategic planning department in order to analyses on why they need to adopt an ERP system. Once they have rationalized the need to finally move to an advanced ERP system, the next big question is on how to go about doing it, what is the appropriate implementation method to go by. ERP consultants jump in to the rescue and do a thorough analysis of the company in order to finalize the most appropriate method which involves if at all, only so much risk that the company can handle while ensuring the best possible outcome.

One way which most businesses are now opting for is to do a thorough research and choose a well established ERP consultant suitable to their needs to do the job of implementing an enterprise resource planning system. This ensures that the job is being done well, handled by well qualified team of functional and technical ERP consultants. This also ensures that the resultant enterprise resource planning system enforces the business practices which are considered standard and optimal for the respective industry.

Another way to go about implementing an ERP system is to hire the expertise and do an in house implementation. Here the company employs its own IT team to develop the ERP system. This decision is normally driven by the financial potential of the company, the requirements of the to-be system and the technical capability available to the company.

Finally some businesses may even opt for an enterprise resource planning system implemented by an external vendor for one of its business functions, ex warehouse management or materials management, etc and employ their in-house team to implement a basic order management component.

The method of implementation is generally decided based on the size of the company business, the efficiency of the current business functions, the extent of changes and most importantly the budget it has in mind for the whole transition process. A large business catering to various different market segments and consequently having several complex business functions normally opts for an specialized ERP vendor as against an in house implementation, since they can afford the services and do not have the expertise to handle such a big project on their own. A small business may however be willing to hire the necessary technical and functional expertise and do the job themselves, simply because its business functions are basic and do not need an exorbitant, fully fledged ERP system to do the job.

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