Critical Success Factors for ERP Implementation in India

Since early 1990s, many firms around the world have shifted their information technology (IT) strategy from developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems.

As more and more enterprises move from functional to process-based IT infrastructure, ERP system becomes one of today's most widely used IT solutions in many large enterprises. IT managers responsible for managing their organization's ERP implementation view their ERP systems as their organizations' most strategic computing platform. In spite of the widely used IT solutions, many ERP implementations are not successful. It takes longer time and costs more money than expected. Given the large investment that an ERP project requires and the potential benefits it can offer if successfully implemented, it is important to understand what is needed to ensure a successful ERP Implementation , during a whole process of ERP implementation, i.e.: pre implementation phase, implementation phase and post-implementation phase.

Serving as a company's central nervous system, ERP systems orchestrate many functions, including order management, materials planning, warehouse management, payables, receivables, and general ledger. Because these systems touch so many aspects of a company's internal and external operations their successful deployment and use are critical to organizational performance and survival. In reality, ERP implementation is costly and complex. In many cases, ERP is the largest single investment in any corporate-wide project. The software is expensive, and the consulting costs even more.