Enterprise Resource Planning (ERP) software is an integral part
of the automation plans that businesses will implement to keep up
with the developing technology. ERP software constitutes the
largest part of Enterprise Application Software (EAS).
If we think of a business automation system as a train, ERP
software will be the locomotive of that train. Effective operation,
enhancement and integration of each coach to be added to this
train, that is to say, of each automation application, will be
based on proper construction of the locomotive.
A company should conduct a thorough analysis to determine the
type of ERP it needs. ERP software preference or adaptation of ERP
software to suit a company's needs is very different from
uploading a package program to the server. It requires a
complicated process. I would like to draw a diagram to simplify the
The success of an ERP Project is primarily based on a
Company's correct assessment of its needs. To achieve this
purpose, the Company will benefit a great deal from an ERP
consultant within the company or, preferably, from an independent
consultant outside the company. When deemed necessary, the Company
may assign this ERP consultant as a technical controller at the
implementation phase or even elect him/her as a member of the
Project Management Committee.
After the company identifies its needs, these needs will be
turned into a tender technical specification and go out to tender.
The companies applying for the project will probably participate in
the tender with a standard software of which the Intellectual
Property Rights and/or distribution/processing rights they possess
and proposals for adaptations specific to the Company.
The companies participating in the tender do not have to accept
the specification as it is. What should be done is to state which
needs they can meet, state the differences, if any, and finally
expressly state with reservation any technical specifications they
are not able to meet. Especially, if one part of the proposal is
ERP software and the other part is the implementation process
specific to the Company, it is better for Software companies to
indicate them separately. If the Parties are open and honest to
each other at the initial stages, the implementation/development
stage to follow will run more smoothly.
Reaching a mutual understanding on the tender specifications
will, in a way, serve as preliminary preparation for the blueprint
document that the parties will prepare later on within the scope of
the ERP Project.
Besides the technical aspect of tender specifications, the
administrative-legal specifications are also important. The Company
announcing a tender will specify its demands regarding the method
of participation to the tender, presentation of draft agreements to
be executed later on, penalty sanctions and warranties and the
companies participating in the tender will state whether they will
meet such demands.
At the end of the tender, the Company will conduct a thorough
evaluation and select the most appropriate ERP Project proposal
that suits its needs and invite that company for an agreement.
This second stage will require an administrative and legal
process as challenging and detailed as the first.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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