Join the newsletter! Sign in with LinkedIn Sign in with Facebook. Events Pulse Check Register for this event on 25 November Because they include so much functionality for different companies in different industries, it can sometimes be difficult to configure them to do something as simple as entering and paying an invoice. Difficult that is without an army of consultants.
The way to avoid complexities and to get ERP implemented on time and budget is to ignore its broader capabilities and deploy as plain vanilla a version as you can get away with. Flexibility and the ability to customise might be very seductive at sales time, but they are the worst enemy of implementation and are certain to chew up resource, time and money.
Instead the secret is to focus on the ways in which Finance in your organisation is the same as it most other organisations. Once you have this sorted out and a basically successful system in place, you can then think about bells and whistles.
It's called "triangular distribution," and he does a good job explaining how to do it subscription required. Gliedman provides an interesting example, using a classic buy-versus-build scenario on an enterprise application that all IT departments face today.
Using the triangular distribution methodology, Gliedman shows that adjusting for risk on the buy-versus-build example whether its for ERP , CRM , supply chain or BI application reveals that initial ROI estimates were too high, and the "more expensive" alternative may actually not be more expensive in the long run.
Do you Tweet? Follow me on Twitter twailgum. Follow everything from CIO. Of course, as the report notes, the actual costs are even higher: the estimates didn't include the internal costs for rolling out the system, such as for project management, user training and IT support.
So if the CFO and CEO can stomach that kind of initial capital outlay—and most can—there's much, much more to contend with around the corner, namely thorny and expensive customization issues, upgrade decisions and annual maintenance fees. Customization is a fact of life with ERP systems, so companies are supposed to take the good, take the bad, you take them both and there you have your ERP system.
In fact, eight out of ten respondents reported that their companies "have customized their ERP systems either moderately or extensively in order to adapt the product to the company's unique business requirements," according to the CFO study.
What were they doing? States the study: Adding modules and functionality, rewriting core applications, modifying outputs, improving system performance and updating the technology.
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