Challenges of an ERP Implementation in SME Segment

Challenges of an ERP Implementation in SME Segment
By Nick Mutt

ERP implementation is always a tough job for the organizations. To get successful implementation organizations need to be very careful. When SMEs think about ERP implementation, they identify the need of an ERP system. They prepare pre-implementation strategy for enterprise software. This strategy involves identification of business needs, budgeting for the procurement of ERP software and services, evaluation of various ERP software to suite its business process. After finalizing the enterprise software they start the implementation and finally adopt the ERP system as an organization wide solution. The major challenges of an ERP implementation for an organization are:

Selection of ERP software:

This is a very critical decision that an organization needs to take. However it is vital to consider the size of the business operations, the projected growth in the years to come, geographical spread, nature of business and investment figures as key factors in determining the selection of ERP software.

The key considerations evaluation and selection of ERP Software are scalability, vendor management, functionality, reliable service and support. ERP systems are designed to grow with the organization. Unlike some stand-alone systems, they do not succumb to volume and change pressures, leaving you to start from scratch. Managing excess of vendors for customer service is not easy. An integrated ERP system gives you one solution supplier to work with. Organization needs to access the software functionality which is necessary to run the business over time at an affordable cost. It may not be cost effective choice at first, but it will usually be the most cost effective and economical in the long run as your business needs grow and change. It gives better ROI. Reliable service and support at affordable cost is critical. It is easier to support an integrated ERP system environment than a mixture of different stand alone applications.

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