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Planning and Managing IT Infrastructure                   Manmohan Sharma, Lovely Professional University




                    Notes                    Unit 11: Enterprise Resource Planning – II

                                     CONTENTS
                                     Objectives

                                     Introduction
                                     11.1 ERP System Implementation Process
                                          11.1.1  The Prior-implementation Stage
                                          11.1.2  Various Stages of ERP Implementation
                                     11.2 ERP Best Practices
                                     11.3 ERP Trends
                                     11.4 Summary
                                     11.5 Keywords
                                     11.6 Review Questions
                                     11.7 Further Readings

                                  Objectives


                                  After studying this unit, you should be able to:
                                      Explain the process of ERP system implementation
                                      Discuss different stages of ERP implementation
                                      Define the concept of ERP best practices
                                      Discuss critical best practices of ERP
                                      Recognise various trends of ERP

                                  Introduction

                                  The term Enterprise Resource Planning (ERP)  was used  to describe the planning  of a  large
                                  organisation to manage its organisational resources. The uses of ERP systems were restricted to
                                  the larger industrial companies. Over the years, the use of ERP has greatly changed and has
                                  grown to be extremely comprehensive.  ERP implementation can be defined as the installation
                                  of a software package that integrates all data and processes of an organisation into a unified
                                  system.  These  software  are  cross  functional  and  enterprise  wide  system  that  handles
                                  manufacturing, HR management, order entry, accounts receivable, and payable general ledger,
                                  purchasing, warehousing, transportation, etc. for an organisation. Picking the best practices to
                                  implement ERP helps all size businesses regardless of size to achieve what their organisation is
                                  missing for implementation.  The scope of this unit is  to highlight  the  best practices about
                                  implementing ERP in any organisation; this is because most of the ERP implementation fails
                                  due to the fact that they either go over budget, over time and/or lose the focus of the business.

                                  11.1 ERP System Implementation Process


                                  ERP can be defined as an  integrated, multi-module system that  assimilates all the data and
                                  processes of an organisation into a unified system. To attain this goal, it is essential to strike a
                                  successful combination of both hardware and software and that at times make the process of ERP





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