The ERP Quandry

The Information Systems blogs are flowing thick and fast !! This time we've been summoned to write on:

• Should companies adapt to ERP or should it be the other way around ?

The basic purpose of ERP is to have a central system that co-ordinates resource planning for the entire organization. In addition to handling resource allocation issues, this system can also be used for reporting purposes. That is, the finance and accounting department can use the system to calculate exact labour costs and the management of the company can use the reporting functions to monitor company performance and make accurate forecasts. However, quite often these systems have been quite expensive and difficult to use and they have also been accused of not delivering tangible value to the organization.

So who should be the one adapting ? Well, I think the key issue lies in choosing the right system for the organization. If the CIO and his team make the correct decision on the ERP system, there shouldn't be too much adapting required from either side. However, I also believe that what adapting there is to do in this case should be done by the software vendors and the people customizing it.

I do not believe in the "one-size-fits-all" type of ERPs. All organizations are different and choosing the ERP system that best fits your organization is a critical business decision that needs to be taken by the CIO. It is critical for the CIO to choose a system that will enhance the efficiency and productivity of the organization. If there do happen to be deficiencies in the solution, I think it is up to the CIO and the software vendor to enhance the system such that it meets the needs of the business and delivers value.

In conclusion, I think it is the ERP systems that should be made to adapt to organizations.

Till next time - caio.