Explained ERP Design Alternatives Hindi | What are the ERP Implementation design alternatives? | Techmoodly
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In evaluating ERP, most organizations consider alternative design options and each of these options has its own price as well as its own advantages and disadvantages.
A “vanilla” ERP implementation, which is the complete implementation of a vendor ERP system, is costly and time-consuming but offers the benefits of total integration and re-engineering of business processes.
Implementation of selected ERP modules, such as the financial and accounting modules, is less costly and time-consuming but
lacks the benefits of total integration of data across multiple functional areas of the business. This alternative is less costly but the benefits are not as great.
Building an in-house ERP system is the most time-consuming and expensive alternative, and it poses considerable risks.
The advantage of this approach is that the organization can build a software system based upon its own unique processes, and its software
will not be shared with its competitors as with the “vanilla” ERP alternative.
However, management can argue that operational processes, such as financial accounting, production planning, and materials management, do not necessarily provide a competitive advantage, and the substantial investment involved in developing and implementing a customized system cannot be justified.
Finally, another alternative is to maintain current legacy systems. The problem with this approach is the organization could be putting itself into a competitive disadvantage by not having an ERP system in place when its competitors do. An ERP system is built upon the re-engineering of business processes around “best practices” and provides the advantages of data integration and standardization.
By implementing an ERP, an organization can keep up with its competitors.
