ERP RIO continued

Streamlining business processes via ERP systems has been of great benefits to companies no matter how big or small. This has led to reduced costs and has been able to provide a bird’s eye view of operations as a whole. Companies such as PeopleSoft, SAP and Baan have been on the forefront of this business process streamlining applications. They help companies make more effective decisions on a corporate wide basis. This id due in large to the aggregation and consolidation of all reports thereby outputting this data in to not only meaningful but also useful information. By diligently following the standard steps needed to implementing an ERP system, a company can potentially unlock the keys to more cost effective decision making techniques. On the contrary, by deploying an ERP system without the due processes to be followed might require a serious disaster recovery plan coupled with solid company insurance to cover potential losses.
Furthermore, a solid sensitive analysis plan that is comprehensive enough to include all facets of operations will greatly pave the way for a solid ERP system implementation.
Notwithstanding, lack of responsibility on the part of business units or a lack of dedication on the part of key members of the deployment team can adversely affect an implementation plan at the execution stage. There are risks involved with the deployment of an ERP system, especially with success in mind. From budgeting to stakeholders to a solid leadership, recognizing these pitfalls greatly reduces risks.

Return on Investment (ROI) MUST be taken into consideration when implementing an ERP plan. Consolidation, integration and streamlining could be reasons why some companies deploy ERP systems with not a lot of emphasis on Return on Investment. Nevertheless, ROI is still taken into consideration. It may take some companies a longer period say a year, two, or maybe more to fully get an ERP system running. Costs associated with this may be very high and Return on Investment may take a few years to set in. ERP changes the way business processes are done and getting this message across, integrating systems, training and consultation costs which may be the biggest cost have to be carefully planned and glitches in the processes should be anticipated for successful deployment. A successful deployment will be the platform and set the stage for future e-commerce systems. Although ROI may require the company to change its business model, payback may often take some time.