As our QAD / ERP clients continue to integrate third party systems such as MES and shop floor data collection solutions, the scoping and planning of these areas in the context of an ERP implementation becomes more complex and important. Often teams do not consider the detailed implications of embarking on an ERP implementation without detailing the assumptions for the upcoming project related to the integration between these systems and their ERP backbone. Embarking on a project which includes the implementation and inclusion of all systems in the ultimate strategic footprint is often a risky and costly proposition.
Some of the considerations are…
- Cost of adding integration between third party systems and ERP
- Additional timeline likely involved in scope of integration between these systems and ERP systems
- Risk to critical business functions that are required for go-live
- Internal resources required to support and drive process and technical integration definition
We find that the best way to manage this dynamic is to make sure that a conservative approach is considered, which calls for implementing the mission critical functions which support critical business processes for procure to pay, plan to production, order to cash, and supporting financial reporting. Integration to third party systems that do no immediately and directly support these business processes should be considered in a later project phase in order to reduce initial project cost, risk, and over-allocation of critical resources.