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ERP system is broken not giving the expectations. Should company Repair or Replace?

<p><span>ERP selection at the end of the day is a human being decision weather was the proper and right decision or not, it was selected and implemented. After few years, management does not feel the difference and what was expected from the ERP.</span></p> <p><span>The question is </span></p> <p> </p> <p><strong><span>Should management Repair or Replace it? In either case why?</span></strong></p>

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Question added by Nash'at Sabri Janim , Cheif Financial Officer , Al-Ejou Group
Date Posted: 2014/12/28
Sarah Ezzeddine
by Sarah Ezzeddine , Project Manager , Path Solutions

This should depend on the issues faced, the cost of repair or change and the cost benefit for repair or change. Based on the above points you will be able to determine if a change is needed or a repair, or may be all you need is re-training on the system.

If the issues you are facing can be fixed and will guarantee they won't have any problems again for a good enough period of time, and the cost of fixing is less than replacing then it should be fixed.

If the cost of replacement is higher but more beneficial, then the answer should be clear.

Raid Shahin
by Raid Shahin , Associate Partner , IBM - Qatar

You need to have an assessment before you decide to replace or repair, based on the result of the assessment and the company needs, the right decision can be taken.

 

My personnel advise is always to have an expert to do the assessment to make sure all aspects are covered.

Muzaffar ShahKhan
by Muzaffar ShahKhan , AX Functional Consultant , MNC-Manufacturing

In MENA region the conclusion of ERP implementatiion is divided in2 areas,1st Operation Part &2nd Financial Part. Both together are never satisfied.

Just keep in mind Finance, HR, Estimation, Procurement & Stores should be intact and build on standard ERP (this is again another big question) and the rest operation part should be carefully customized based on user requirement experience linked with Accounts then over a period of time and maturity of system usage everything will be stable and then your Organization can discuss the improvement plan and features like Mobile ERP, etc.

Nagmeldin Mohamed
by Nagmeldin Mohamed , Finance Officer , World Food Program - Sudan

Well I'm not really an expert on ERP, but I have some idea about it. I did some researches and the following could be the answer:

 

1) ERP systems touch all parts of a company and you’ll want team participation from each major area of the company. Select a team of people from key departments that work with the system day-to-day and who also have a good understanding of the business.

 

2) Discuss the objectives for the system with the project team. Properly implemented ERP systems should support your strategic plan and may include:• Hitting your sales and profit targets• Shipping product or delivering service to customers on time• Generating sufficient cash to grow your business• Provide the infrastructure necessary to grow your business and its value• Support compliance with external requirements like the need to trace serial numbers or lotnumbers• Reduce the risks of upsetting customers by missed shipments or poor quality due to rushedproduction• Minimize the risk of ordering too much inventory

 

3) Define the Issues with the System.

 

4) Identify the Costs Caused by the Issues.

 

5) At this point you know what your objectives are for your system, you’ve identified the problems orissues faced by the users and you’ve determined the costs of continuing to struggle with the system.With this in mind consider the level of the problems:• Does the system generally meet your needs in terms of running daily operations?• Do the issues seem to be focused around a particular function or group of users?• Would the concerns be addressed if some automation were introduced in a particular areaallowing users to be more productive?• Is it primarily a matter of getting the right information out of the system?

 

6) If the answer to questions like these is yes, then you are probably headed toward Repairing the system, not Replacing it. Often your existing systems can be optimized by retraining new users in how the system was designed to be used and eliminating external work-arounds that have not been formalized as part of the managed system.

 

7) If, however, you find the answers to the above questions tend to be “no” or there have been somesignificant changes to the business and the system no longer supports the growth of the company, then it is probably time to Replace the system. Replacing the system involves looking at the market,evaluating prospective systems by comparing them to your needs and objectives, then implementing itonce a new system is selected.

fahed abdelwahed
by fahed abdelwahed , Accounting manager & Microsoft Dynamics AX Functional Consultant & Vat specialist , M.A. Almutlaq Sons Co.

It depends on the requirements of the management , may be the problem is from the implementors them selves they didn't spend the enough  time required to meet management requirements  due to financial reasons or experience reasons I suggest to discuss difficulties with one or more partner , successful partner and see their opinion after all if there is no solutions you can think about replacement

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