Country-based Needs Regarding Erp Systems Implementation

The tantalizing prospect of an enterprise-wide customized package is what makes ERP systems such a big deal

. Each department gets to map out every single process on to its module in the software, and then integrate it with all the other modules. Similarly, companies in different regions or countries cannot be expected to do the same tasks in the same way. So a package that can be customized as per regional needs by a local implementation team is naturally going to be sought after.

What South African businesses need is a lot different from what US or Europe based companies expect. In South Africa, even the large companies won't fully utilize the massive capabilities (and price tag) of ERP solutions provided by multinational vendors who offer the same huge software everywhere in the world. As a result, a lot of SA companies are now stuck with over-priced software or lower midmarket solutions that leave no possibility for growth.

Overseas consultants flown in from Germany or America to implement a standard global package would be all at sea trying to get an understanding of a South African company's business processes. IT or divisional managers would end up spending a lot of time trying to explain the culture and the paper trail. What the region really needs is an upper midmarket solution with local vendors and implementation partners who understand the regional nuances.

This means a package with the proper framework for mid-market to large companies and the availability of experienced local consultants. The unified information system connects offices, subsidiaries, agencies, etc. When the customer wants to enter a new market or start a new department, it is scalable enough and ready to activated and customized without any delay.

Customers can choose to begin with core modules like Sales and Distribution, HR, FI/CO and Production. The data from old packages can be migrated to the ERP and the whole thing can be moved form a test server to a live environment. Meanwhile, the company can keep adding and integrating other modules they need around this existing core.

Low cost, ease of use and a reduced implementation timeframe make this kind of a solution perfect for South African companies where value for money is paramount. These are all good reasons to choose local consultants. Overseas teams increase the cost and they have a steep learning curve and culture shock to overcome in South Africa.

Apart from the cost and efficiency factors, there is also change management to consider. Management and employee resistance to the massive company-wide change that an ERP package triggers is always a key factor that decides whether an implementation is going to succeed. This is perhaps as important as a competent customization, if not more.

Even with fully customized and very capable ERP systems, many companies never realize the full benefits because employees simply cannot understand why they have to give up manual processes that have worked well for so many years. This needs training and familiarity with the package. Local consultants with a lot of experience can explain how the package has made employees and entire departments more productive in other South African companies.

by: Tracy Narvaez

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