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Thursday, October 21, 2010

ERP Myth or Reality?

The IT Department is responsible for the success or failure of an ERP System

This is a myth! And it couldn’t be further from the truth. The IT Department does have a defined role, however, the reality is that the success or failure of an ERP system is the responsibility of all employees. Just as “People” determine the success of an organization, “People” determine the success of an ERP System. In fact, at many manufacturing companies the two successes or failures are intertwined.

The IT Department has the responsibility of providing the end-users with an operational and well maintained system. This is true of any business. IT must properly maintain the network, the ERP Application and the Database. Other ERP responsibilities can include, but are not limited to; custom report writing, application development, client configurations and system backups.

The day-to-day operation of the ERP system indirectly or directly involves nearly every employee from Sales to Production to Finance and in between. Management must fully support the ERP initiative, stay involved and ensure the cooperation of every department. In addition, Management must define their business procedures and ERP Policies, document and communicate, and most importantly educate their end-users so that they understand their responsibility to properly use the ERP system.

No matter when the ERP software was implemented, it is an evolution and companies must continuously adjust as their business changes. At the end of the day, the end-users of the system will decide the success or failure of the ERP system.

Posted by Joe Zalewski, Managing Partner and COO at BizTech

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