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ERP: A necessary risk

Zafar Anjum | Oct. 18, 2012
The need for ERP is no longer in doubt and is accepted as the “backbone” of any company. But the implementation of such systems still poses considerable risk, says Voon Ngee Yiew, managing director of ABeam Singapore.

What are the factors that local management may overlook when they expand an ERP system across regional offices?

The usage of our Local Requirements Template mentioned above plus having a combined team with local consultants will help to alleviate the common issues of different languages, culture and disparate level of skills and IT knowledge across the different Asian countries.

One of the major benefits of rolling out ERP is to achieve standardisation across the different offices. However, there is a risk of having too much standardisation, until it impacts the ability of the individual office to operate or compete effectively. ABeam Consulting utilises what we term as the Core & Edge analysis to minimise this risk. 

Aside from these issues, an important factor to consider for long term sustainability and continuous optimisation of the installed system is the need to have a strong governance methodology executed by a dedicated team. ERP is a major investment that is expected to serve the company for many years. And there will be many demands placed on it in terms of new business requirements, legal and statutory changes, additional entities, etc. Without a strong governance team to manage the increasing traffic, the situation will quickly deteriorate resulting in high maintenance and system downtime.  

 

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