What type of business is an ERP system suitable for?

Successful ERP implementation must meet following conditions:

1. Consider creating a processAs we all know, an ERP system is process driven. If an enterprise's existing process is not standardized, or employees do not have an understanding of how to work in accordance with process, it will be difficult for enterprise to carry out corresponding work of ERP project. In fact, everyone here has a misunderstanding. Think business is better off without processes. User behavior can then be planned through ERP system. It is not right. If employees of enterprise have not established concept of how process works, but only want to establish such a mode of operation through ERP project in just a few months, this may be an impossible task. If an enterprise wants to use EPR system, it must have at least a set of relatively standardized operational processes, and employees already have some understanding of this process. Otherwise, it's better to touch less.

Secondly, whether direction of development of enterprise is being formed. Interlaced lines are like mountains. This sentence is also true in ERP system. Different industries have their own characteristics in business. For example, in food industry, there will be management requirements such as expiration date and batch number. In hardware industry, there is often no need for expiration date management. This difference between industries also puts forward requirements for development and design of an ERP system. To increase flexibility of ERP system, many enterprises have proposed industrial solutions. Really point is to add some industry characteristics based on some commonalities. In this case, it is not necessary for a particular industry to do too much secondary development, and enterprise can use it. This not only reduces cost of implementation, but also increases likelihood of project and implementation cycle success. For businesses or software companies, this is a win-win situation. Therefore, before embarking on a ROP project, an enterprise needs to consider direction of its further development, that is, whether an industry positioning has been formed. If it is still in exploration phase, then author still recommends temporarily postponing ERP project. Third, stability of enterprise management team. An ERP system is just a tool, and in end it has to be managed by someone. To grow a successful key user, companies often need to spend almost a year or more. In this case, if employees of company are highly mobile, they will leave after they have mastered mode of operation of ERP system. This will deal a death blow to ERP system. When author implements an ERP system for an enterprise, I often ask him about situation with change of work of employees in past year, especially about flow of key users in department. If employees in enterprise are unstable, then author will suggest that enterprise postpone implementation of project. If company still insists, then project should take additional measures to reduce negative impact of staff turnover on project. For example, each department is required to transfer at least two key employees to participate in project team. In this case, even if one employee leaves, another one will stay. The adverse effects caused by loss of key users during project can be appropriately mitigated. However, basic principle of ERP system in enterprise is to ensure relative stability of enterprise management team. Fourthly, there are reliable initial data. ERP project, three-point system, seven-point implementation, twelve-point data. It can be seen that master data is important for ERP system. Basic data collection cannot be completed overnight. For example, it takes a long time to fill in list of materials, working hours and process information, etc. Especially with regard to working hours and information processing: From collecting data to testing it often takes a year or more. It is inappropriate for an enterprise to use an ERP system if master data was not sorted before ERP system was installed. Because implementation of an ERP system is often self-paid, and it is charged daily. If most of time is spent on collecting initial data, cost of enterprise project will increase dramatically. And risk of an ERP project will increase significantly.