What are the various pre-requisites of ERP?
Let us understand and describe the essential cultural elements based on best practices to make ERP a great success.
1) Highly customer focused environment.
2) Hierarchy and boundary less structure with empowered employees.
3) Well desired process based activities.
4) Responsible and accountable process ownerships.
The absence of any one of the above will lead to ERP malfunction. Hence to make the successful implementation, ERP must be properly interpreted in the following ways.
ERP is more a business strategy than IT strategy. The concept of ERP is more suitable for the lean manufacture than mass manufacture. In fact, in assemble to order scenario, ERP brings excellent business results, whereas in make to order scenario, it goes beyond business results and improves employee morale and motivation.
The culture of make to stock is not at all suitable to ERP, and hence forceful implementation of ERP will make ERP degenerate into more of a transactional system than a planning system, there by losing its core inherent capability.
The typical qualities of ERP users include team spirit, analytical mindset, and readiness to be a change agent, willingness to accept process accountability, viewing IT as a tool for scientific experimentations and improve information level.
The chief issue of ERP is not the process or the technology but the people. Hence, the Human Resource Head should be the main project leader for the ERP exercise.