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An ERP like SAP and Peoplesoft forces change in company rules

Other ERP articles:

ERP Testing ERP Business Analysts ERP Contracting ERP Data Migration ERP Reasons to Get One ERP Forces Changes in Business Rules ERP One ERP is the same as any other ERP ERP Security is OXYMORON ERP The Whole is Bigger than the Parts

Lets do that old favorite, "Ask the DBA about ERP Business Rules." Naturally, I am not a business type person but I cannot resist giving free advice. 

> Hi my name is Nadeem and I'm a student in (Sheffield, England).
> 
> I came across your article pertaining to the choice of erps's and read it 
> with interest.  I am currently studying erps and approaches to application
> development and find it rather interesting.  
> 
> I was wondering what are your thoughts on whether or not a business needs to
> change their practices to get the best from erp's?  I already read your views
> on the choice of an erp which was well justified and very valid, but is it
> possible that a business can find an erp that is perfect and could be 
> used with current business practices or one would need to change the 
> business processes even somewhat slightly?
> 
> I look forward to your reply,
> 
> Thank you 
> 
> Nadeem

Nadeem,

All ERP implementations will mean changes to the business practices of the implementing organization. No matter what SAP or PeopleSoft consultants say. Any organization management that thinks the ERP will be easily configured to match current business practices smokes crack (cocaine derived street drug). Or is so far from a reality based view of what an ERP is they may as well be smoking crack so they can truly feel as depraved as they are when they destroy the company.

Many of the processes that a company currently do are the result of arbitrary limits in old systems anyway. So you trade one set of arbitrary limits and rules for a new set... To successfully implement an ERP: do business the way the ERP is set up to do business, not the way your business does business. Why? Because the processes to be done by an ERP are "overhead" sorts of drudgery that do not make the company money. For example, timecards, payroll, general ledger, inventory, what ever the fancy name is for ordering and receiving parts, shipping product.

So if you are UPS and your business is "shipping" stuff better than anyone else, for God's sake, do not ship packages with an ERP. You will go out of business. But do the general ledger, payroll, timecards, equipment inventory the way the ERP is set up to do it and you save money.

All ERP implementations I have seen change business practices, sometimes radically. Successful companies do not spend huge effort changing the ERP configuration on processes that do not make money. They may spend some effort interfacing to the processes that make the money.

Good luck with your studies.