For enterprises with relatively weak information foundation, the complexity of ERP makes them face various puzzles in the selection and implementation of ERP, and its failure rate and capital investment make decision-makers hesitate to implement ERP. Summarized by Yihai Software, ERP system understanding, selection and implementation are usually faced with the following eight problems:
Q1: ERP is not feasible in smes? A: Many people think that ERP system is A patent of large enterprises because of its huge, complex functions, long implementation cycle and high cost. In addition, some small and medium-sized enterprises even think that informatization is only A cost, and the implementation of ERP system will not bring benefits to enterprises but also increase the burden of enterprises. Is ERP really not feasible in small and medium enterprises?
As a management concept, ERP is applicable to all enterprises engaged in business activities. The determinants of its use are related to enterprise management philosophy, economic strength and enterprise benefits, and the size of the enterprise has no substantial relationship. ▲ ERP implementation will bring a series of internal reforms in the organization. However, for small and medium-sized enterprises, they can adjust their strategies quickly and with less resistance in the implementation process, despite their limited resources. ▲ Senior managers of small and medium-sized enterprises are more likely to spend time on ERP implementation, because the higher management level and fewer employees involved make it easier to change ideas, processes and technologies.
Q2: Domestic or foreign manufacturers? **A: ▲ Foreign ERP vendors are represented by SAP, Oracle, Microsoft, Infor, Ebricor, Sage, NETSUITE, etc. The advantages of foreign systems are mature management ideas, rich experience in industry best practices, compliance with international rules, complete application functions and reasonable software design, while the disadvantages are high implementation and maintenance costs.
▲ The domestic camp is represented by Yonyou, Kingdee and Zhibang International, as well as Inspurtsoft, Neusoft, Baoxin, Aerospace Information, etc. The advantages of domestic products are low cost and in line with the application habits of domestic enterprises, while their disadvantages are immature management ideas, incomplete product functions and many technical loopholes.
Yihai software believes that SAP is undoubtedly the best ERP system in terms of function; From the perspective of technology development, Oracle is a technically perfect ERP system, and other systems can interface with it conveniently. The low cost characteristics of domestic software may be better suited to the needs of enterprises on a low budget applications.
Q3: Follow standard and scientific ERP or stick to flexible enterprise characteristics? A: ERP is an advanced and effective management idea and method, which borrows A new management mode to transform the old management mode of the original enterprise. ERP software in the actual promotion and application, its application depth and breadth are not in place, the effect of most enterprises is not significant, has not aroused the shock of enterprise decision makers and people’s extensive attention.
Follow the standard, scientific ERP or adhere to flexible enterprise characteristics become decision-makers must solve the problem, usually there are three answers: ▲ completely use ERP advanced methods, sacrifice their own characteristics; ▲ Follow the characteristics of enterprise management, ERP “big operation”; ▲ Not only the advanced method of ERP, but also to meet the characteristics of enterprise management.
The advantages of method 1 are short implementation period and perfect system function. The disadvantage is that it takes a long time for business people to adapt. Method 2, on the contrary, has long implementation period and high error rate. The advantage is the short time for business people to adapt. Method 3 is a kind of compromise, the key is to grasp the degree of it. Usually, mature ERP system only allows no more than 20% of the customized development workload, how to make good use of the 20% characteristics of the enterprise ERP implementation should be carefully planned.
Q4: Inherit the history or implement it completely? A: Before ERP system selection in many enterprises, information construction is not blank, or ERP has been implemented but not successfully, or A large number of single applications. Faced with a large amount of historical investment, every decision maker hopes to make good use of the historical system and protect the investment. It is hoped that the newly implemented ERP system can be integrated with the historical system and make use of some or all of its functions. Compatibility is a basic requirement for the new ERP system, but at the same time, the new system will inevitably be dragged back by the old system, which is the price that must be paid to protect the investment.
Therefore, whether to use the old system, how to make good use of the old system, before the system construction to carry out a unified evaluation and planning. The basic principle is: ▲ to ensure the realization of new system objectives; ▲ Maximize the value of the historical system as much as possible under the premise of # 1.
Q5: How to evaluate the success and failure of ERP? A: Compared with enterprises’ investment in production equipment or sales channels, ERP system investment is not A small amount of investment. What can ERP bring to enterprises? How to evaluate the success and failure of ERP?
The core value of ERP is to achieve effective management of the whole supply chain, so as to improve the overall operation efficiency of the business chain and reduce the operation cost. It is mainly reflected in the following three aspects: 1. Manage the resources of the whole supply chain; 2. Beneficial production, synchronous engineering and agile manufacturing; 3. Plan ahead and take control.
The measure of the success and failure of ERP implementation is whether it can realize the value of ERP. Analysis of ERP implementation failure cases, more than 80% are due to the “information island” and “information asymmetry” problems have not been solved, mainly showing that ERP application modules run independently.
In the process of ERP system selection and implementation, the following measures should be taken to ensure the realization of ERP value: ▲ Carry out information resource planning, predict the utilization degree of “information” in each business department, replace information island with information sharing, and realize the application value of ERP; ▲ Unified planning of ERP system modules, priority implementation of modules with good business synergy, to ensure that the early implementation of the system to generate business synergy value.
Q6: Do I need to straighten out the interior before going to ERP? A: Some people think that ERP requires very high application requirements, or they have used some small software systems before, and think that only the enterprise itself is very standard can use ERP. But in fact, this is not the case, as long as we really understand ERP after it is possible to understand under what circumstances can not be on ERP. ERP is a management tool, you don’t want to think about how it was developed, because that will lead you astray.
The likelihood still has a person to be able to ask, that went up ERP does not need to do ISO attetion again? Of course not, although ERP will standardize the process of the enterprise, but there are many ISO things ERP can not do, the two are not contradictory. However, in the order of implementation, if the enterprise has not implemented the ISO system, it is recommended that the enterprise first use ERP, then ISO management system, so that the cost of work is relatively small, do not have to do a lot of repetitive work. Another advantage is that the implementation of ERP online process in addition to the process, but also need a lot of system support, these system documents can be incorporated into the ISO management system, ISO standards to be managed, so the two are complementary.
Q7: Unified product or product combination? A: In the management software market, there are different products such as ERP system, CRM system, SCM system, eHR system and EAM system, and there are different brands in ERP system. The products of one manufacturer cannot contain all the management modules, and different products have different features and advantages in different modules. In this case, Decision makers will naturally come up with ways to combine the advantages of modules for different products.
▲ For ERP core modules, such as finance, procurement, sales, production, inventory and other modules should use unified products; ▲ For ERP epitaxial module, such as EAM, HR, CRM system, etc., can use different manufacturers’ products; ▲ In order to ensure the integration of different systems, it is recommended to adopt a general contractor to control the interface of different products to ensure the integration of the system.
Q8: Should we develop independently or choose mature products? A: At present, there are two modes in the ERP system construction of domestic enterprises: one is the consulting implementation mode of selecting mature products, and the other is the independent construction mode. Most enterprises choose the first mode, but on the one hand, due to the characteristics of Chinese enterprise management culture, ERP in Chinese enterprises can not adapt to the soil, many ERP modules in the enterprise promotion is not mature; On the other hand, because the implementation cost of ERP software in foreign countries is relatively high, while domestic products are not mature in technology and management ideas, enterprises’ satisfaction with ERP products is also very low.
Compared with the two, independent development implementation cycle is long, system maintenance is complex; Choose mature products, short implementation cycle, small system maintenance workload. However, most of the enterprises that choose independent development have certain implementation background conditions, such as undertaking a large-scale scientific research demonstration project, or introducing a prototype software in international cooperation and absorbing it. Yihai software believes that for most domestic enterprises, it is a more sensible approach to choose mature products for appropriate secondary development.
In short, only by getting rid of the imprison of ERP understanding and choosing a good and appropriate ERP system as the carrier can the enterprise give full play to its role.
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