E.R.P. Implementation Problems

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Enterprise Recourses Plan implementation issues


Implementation of an E.R.P. System is a huge complex process, because an E.R.P. combines or integrates the all processors in an organization in to a single operating entity and implementation process shouldn’t disturb the normal production process. R.Appuswamy , the Department of Engineering and Technology, Deakin University, Australia says, “Based on the implementation experiences of a few companies like Cable Systems International (Appleton et al.1997),Amoco Corp (Jesitus,1997) McKesscn Corp(Wilder,1998), BCAG, Ansett Australia the issues that confront ERP implementation are People, Business Process Reengineering, Data migration, Hardware and Network topology and configuration issues , Enormity of the effect (ie interruptions to production processes) of go-live on production ,integration of existing legacy systems to ERP and above all the massive cost associated with a ERP Project which may result in cost overruns.” The overwhelming effect of some or all of these issues have resulted in abandoning the ERP software midstream by a number of companies (WM, 1999]. Therefore there is enormous risk associated with such bold initiative. As in all projects, risk management of ERP project will need extreme attention in project management strategy. A quick appraisal of Project Management strategies required for ERP implementation compared to traditional IT project is not out of place”. In the statement, R.Appuswamy hints us not only about the complexity, but also about the cost and the possible risk.

Budget and cost schedules

White Papers on “www.projectperfect.com“say,
“Implementation effort will be bigger then ever talked about or even imagined. We are yet to hear from an organization who have implemented ahead of schedule and under budget.” This statement address the same issue R.Appuswamy hinted by his statement. Actually meeting the cost and schedule budgets is one of top requirement in...
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