July 07, 2011

Understand the objective of ERP application

For a large percentage of ERP customers, an ERP implementation has been the most complicated andcostly software project they have undertaken. Companies have made big investments in ERP software, and leading CEO¡¯s now want to see IT contributing more to the bottom line ¨C producing higher value at lower cost. Notwithstanding, patches and new releases create ongoing support and business adaptation challenges that can chip away from the returns on ERP investments. Unmanaged changes to ERP applications have generated some of the most recounted project horror stories. Consequently, ERP Change Management is becoming the focus of attention in many IT organizations. Changes are inevitable. Most companies adapt their business processes for their ERP, but initially find it easier to reduce the impact of the organizational change by customizing and extending the ERP functionality to provide legacy system capabilities that are considered to be business critical. The magnitude of these collective changes is more than most companies can effectively manage. Staffing levels required for steady-state support operations quickly become overwhelmed because the roles they have traditionally played must take on significantly more responsibilities, and the roles in the ERP environment are very different from legacy system administration functions.

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