The ERP lifecycle within Israeli enterprises is typically divided into 2 main phases:
ERP 1 – the first phase is getting the basic modules (Financials, logistics, and sometimes also HR) up and running, and also reaching stability of the system within the organization. This phase it rather complex, and takes several years to accomplish. The benefits derived from this phase are not entirely clear, but are usually referred to as operational benefits since an ERP 1 is essentially an operations support system. It is seen by most Israeli companies as a “must have” infrastructure that can help the organization in its future plans.
The 2nd phase, however, is meant to better align the ERP package with the business needs. ERP 2 includes implementation of more advanced and specialized modules (for example, project management, asset management, incentives management etc.), recently organizations have started implementing core vertical modules as the 2nd phase of their ERP lifecycle – loans management, core banking etc. Another characteristic of ERP 2 projects is the incorporation of infrastructure-type components that are becoming a part of the ERP’s technological architecture (for example, ERP-specific portals for dedicated ERP processes, DW/BI specific to the ERP data, internal BPM/Integration engine etc.). So ERP 2 is about making ERP work better and easier, and close to the business needs. Another focus point is upgrades to advanced versions. Most Israeli SAP customers have already upgraded or are in the process to upgrade to SAP’s ECC 6.0 version. On average, full upgrade takes 4-9 months and can cost up to $1M in a complex large implementation. Main reason for this upgrade is “staying in-line with vendor” in order to minimize future risk and avoid high maintenance costs (versus pure functional reasons). Oracle ERP shops have been less enthusiastic about upgrading to Oracle 12, most are planning to do so in the coming years but are not in a hurry to do so in the very near future.
But moving from ERP1 to ERP2 is sometimes tricky due to the "shock" that is caused to the organizations after ERP1; Some IT departments are complaining it's hard to get the support of the LOB managers although it's clear that ERP2 presents sibstantial potential benefits. The organization just "wants to relax" and have to stability, so getting on to the 2nd wave will not be so easy.
אין תגובות:
הוסף רשומת תגובה