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Saturday, 22 October 2011

ERP Solutions – Best Practices Implementation

ERP software solutions in Indonesia need to provide a high level of reliability, as well as good customization and configuration options due to the geographic and cultural environment. ERP solutions that are publicised as easy-to-implement and ready-to-go software, however, should be taken with a pinch of salt because no reputable ERP software company should claim its solution is a universally easy-to-implement system. Implementation of ERP systems is a complex process, involving in-depth study of an enterprise’s needs and requirements, data migration, configuration and possible customization of software, etc. ERP solutions consist of different modules that have to be configured to suit the correct needs of a customer; therefore, best ERP implementations practices involve long procedures and thorough analysis and assessment of different aspects of successful software deployment.

ERP solutions provide increased business processes efficiency, automating essential business management procedures and tasks, while allowing corporate executives to analyze data in a more comprehensive fashion across different departments. Thus, implementation of ERP systems secures operations of the everyday management procedures and decision making, helping managers to focus on strategic decisions instead of procedures and methods for data collection across departments and subsidiaries.

Best practices in implementation of ERP platforms show that few large corporations can rely on ready-to-install solutions but need to go through a process of customization and tailor-made configuration of the ERP systems they use or implement. The ERP systems are developed in modules; therefore, a trade corporation can take advantage of particular software modules like financial operations and accounting while setting aside modules that are designed to fulfil the needs of a manufacturer.

Although all ERP systems are developed to enhance the existing corporate business model and practices, an enterprise can barely expect to see immediate positive impact on its Return on Investment (ROI). Best practices in ERP implementation show that a corporation should witness improvement of financial results over a period of time, depending on process complexity and overall company size it could be 3 to 5 years.

A crucial element of ERP implementation is data migration, a process which has to be carefully prepared in advance, while data templates should be developed for seamless migration of data. Data migration takes place at a relatively late stage of the overall ERP system implementation; therefore, some managers and IT specialists tend to underrate the importance of the process. According to the best ERP implementation practices, data migration can secure, or ruin, flawless transition to a new business management system and is an essential element of each smoothly-operating ERP system.

A reputable ERP software company will usually require over a year or two to complete ERP system implementation within a large enterprise. Best practices include hiring of third-party consultants to assess all needs of the company, evaluate the ERP software, and develop processes, together with the ERP software vendor, for achieving best implementation quality within budget and time.

Support is another underestimated aspect of ERP implementation, and underrating this element can result in disastrous results for a corporation. Pre-implementation and post-implementation support plays an equally important role in the best ERP implementation practices. While many companies offer consulting, configuration and customization prior and during implementation of ERP software, a first-class service should include reliable and affordable post-implementation support.

A company may consider implementing a Software-as-a-Service (SaaS) ERP solution, which eliminates a number of difficulties related to on-premise installation and configuration of ERP software. Such a solution runs on remote servers and all data is stored on these servers that are managed and supported by a third-party vendor. However this may not be a good idea in Indonesia till the telecom infrastructure develops across the nation and can guarantee nearly 100% uptime and low latency.

The best practices in ERP implementation are heavily dependent on a software vendor an enterprise selects to perform the implementation. While choosing an ERP software solutions company in Indonesia, it is crucial to go with an organization, which has many years of implementation experience, good references and offers high-quality and configurable ERP systems at competitive prices.

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