ERP’s scope usually implies significant changes to staff work processes and practices. Generally, three types of services are available to help implement such changes—consulting, customization, and support.
Process Preparation
Implementing ERP typically requires changes in existing business processes. Poor understanding of needed process changes prior to starting implementation is a main reason for project failure. The difficulties could be related to the system, business process, infrastructure, training, or lack of motivation.
Configuration
Configuring an ERP system is largely a matter of balancing the way the organisation wants the system to work with the way it was designed to work. ERP systems typically include many settings that modify system operations. For example, an organisation can select the type of inventory accounting—FIFO or LIFO—to use; whether to recognise revenue by geographical unit, product line, or distribution channel; and whether to pay for shipping costs on customer returns.
Two tier Enterprise Resource Planning
Two-tier ERP software and hardware lets companies run the equivalent of two ERP systems at once: one at the corporate level and one at the division or subsidiary level. Each independent center or subsidiary may have its own business models, workflows, and business processes.
Customization
ERP systems are theoretically based on industry best practices, and their makers intend that organizations deploy them as is. ERP vendors do offer customers configuration options that let organizations incorporate their own business rules, but gaps in features often remain even after configuration is complete.
Extensions
ERP systems can be extended with third–party software. ERP vendors typically provide access to data and features through published interfaces.
Data migration
Data migration is the process of moving, copying, and restructuring data from an existing system to the ERP system.