ERP software promises to bring all the departments and functions of a company together into a single computer system that caters to the specific needs of all those departments. All organization functionality is enclosed in a single package that will cover two or more systems. An example of such software would be accounting software that offers payroll and accounting functions. The entire business works more efficiently with a single program that meets the requirements of human resources, finance, and warehouse.
Each company department is equipped with computer systems optimized to perform certain department functions. However, in ERP, they are all integrated into a single program that works with one database. It allows all departments to share information and communicate with each other.
Implementing erp software does not require any inside skills. While a small project may take as little as three months to plan and execute, a rollout to multiple sites or countries can take years. The cost of small projects can be reduced by hiring specialist ERP consultants.
A group of consultants takes responsibility for the initial implementation of ERP. One also carries out the delivery of work before its launch. Your job usually involves product training, creating process and workflow triggers, system optimization, improving reports, extracting complex data, or implementing business intelligence; and expert advice on how to improve how ERP can run a business.
The team also handles the most important part of the project: planning and collaborative deployment testing. In larger ERP projects, consulting is carried out at three levels: system architecture, business process consulting, and technical consulting.
The cost of implementing ERP in most midsize businesses ranges from the list price of ERP user licenses up to double the amount, depending on the level of customization. However, large companies spend much more on implementation than on the cost of user licenses.
The customization process involves extending or changing the system with new user interfaces and application code. Customization usually reflects business practices that are not currently found in the core procedures of an ERP system software. One of the main considerations of an ERP package is that it can be costly and complex. Therefore, most companies use the best practices built into the purchased erp system.
Customization work is usually done with time and material considerations as custom software development. In many cases, the work done as customization does not include a service agreement with ERP vendors. Therefore, the ERP provider is under no obligation to keep the code working.