THE KEY QUESTIONS FOR SYSTEM JUSTIFICATION
- Why do you need a new system? What benefits are there of moving from an existing system?
- To remain competitive in the market place, management needs to understand the benefits prior to talking to suppliers.
- Everyone needs to be as one on the process.
SPECIFICATION OF ERP
This is like trying to build a house without the plans and detailed specifications. This is true for anything in business
This enables you to clarify what your goals are, with the implementation of the ERP. this will make sure that you are not diverted from your important features required. most ERP systems are so feature rich when you review the particular ERP system you may be distracted from your original goals.
It is true to say that there will be many motherhood requirements, such as improved customer service, improved production and or distribution. however this document should be more specific in explaining how the ERP system is to improve process or solve your business pain points.
When defining what eBusinessERP system you will be implementing it is appropriate to define the following for your business;
Business Structure:
- What Business Type -(Manufacturer, Exporter, Importer, Distributor, Retailer, Local, Global, Niche, Mainstream, Service Provider,Consultant, a combination, etc)
- How do you market - (Bricks and Mortar presence, On-line, Magazine, Radio, TV, Word of mouth, leveraging related businesses client base, Mobile, SMS, Social Networking, Multi-level, door to door, etc)
- You may or may not have official departments, however the business processes should be categorized into departments.
- Sale process - (inside outside web store, Sales Reps, Affiliates, Contractors, Partners, Commissioned staff, etc)
- Accounting
- Quoting
- Orders
- Sales
- Service & Support
Reporting System:
- Is it robust?
- Are most reports available?
- Will you need custom reports?
Have you been asking any of the questions?
Our current, ERP,accounting, CRM system,etc is old and outdated, and any changes in our corporate process are stifled by the inflexibility of our current software.
Our desire to gain advantage over your competitors by effective access to all our corporate information becomes difficult by the fact that our current system is based on old technologies, therefore making it difficult, if not near impossible to achieve the level of integration we need.
The need to utilise specialised external reporting tools to gain the business intelligence of all the enterprises information. The information may exist in disparate systems, however time, effort and resources required to obtain that information outweighs the benefit of keeping the current system. Often a new flexible, fully integrated ERP system is a better option.
If so complete a review of your business and ask yourself these key questions:
-
- Do I enter information in the system only once?
- Is the information available to the correct people to assist in doing there job?
- Have you developed other systems, business processes to enable your company to complete the tasks where they developed because your current system cannot accommodate those requirements?
- Has your business changed to the extent that your current system no longer meets your business requirements?
- Do each of your staff have their own personal process to enable them to effectively do their job? Is this a workaround,duo to the lack of functionality in your current system?
- Have you tried to undertake internal review of your process, but have been told that your current system doesn't allow you to make your desired changes?
- Are you employing best practices in your industry? Are your competitors more efficient, enjoy a lower cost base, produce more with less resources?
- Are more and more of your processes taking place outside your enterprise?
- Are you finding that many transactions take place as a batch process? Are you getting real time data or are you experiencing delays in information?
If any or several of these points are relevant to your current circumstances, you should be considering the implementation of an effective e-business ERP system.
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