The Problem of ERP Implementation

The Problem of ERP Implementation
Because of the need to adapt the generic software to the specific needs of the firm, ERP vendors were required to provide tools and utilities that will allow the firm’s in house IT personnel or independent consulting firms to customize the software. Actually, customization and implementation of ERP software became an industry on its own. AMR Research Inc. estimates that 75% of the ERP market size relates to programming and consulting services for the implementation of ERP in the organization. The customers also spend several times more money on ERP associated services compared to the purchase of the software license. The industry standard is 3 to 5 between amount spend on software purchase versus amount spent on software customization and implementation services.
With the evolution of the “Active ERP” systems, the customization issue becomes even more critical. Active ERP systems incorporate workflow, triggers and alerts as an integral part of their logic. These processes are more susceptible to be customer specific and dynamic over time (and within the same organization). The current ERP programs do not provide an adequate solution to this problem.