Local Differences In Erp Systems For Businesses

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.

It would be pointless for a divisional or IT manager to try and explain a business process done the South African way to a consultant from America or Germany. The culture and the paperwork are both just too far apart to reconcile or adjust for the local market. The real demand is for upper mid-market solutions provided and implemented by regional vendors.

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.

The company can start off with a few of the core modules such as Production, HR, Finance, Accounting, Distribution and Marketing. They can get started with the data migration from old systems to the ERP, and move the whole thing from test to live servers. As and when convenient, other modules can then be customized, tested and integrated with the live system.

This is the kind of low-cost, simple to use and smaller customization/implementation timeframe package that appeals to South African businesses who seek value for money above all else. This also leads to the obvious choice of local consultants. A foreign team would be expensive and they would have too much culture shock and a big learning curve to get the project completed as quickly or effectively.

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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