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ERP system in overtaken company

By janez.vovk ·
Our company has taken over another company for first time. General manager has decided to implement our ERP system (which is still in implementation phase) in overtaken company.
Overtaken company is also in implementing phase of another ERP system. I think (after short analysis) it is better to build B2B solution between two companies in this circumstances.

What do you think? Have anyone any practice in taking over other companies and changes od ERPs due to this reasons? Are there any rules for appropriate actions? Any hints?

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ERP system in overtaken company

by eBob In reply to ERP system in overtaken c ...

I've been involved in this a number of times, on both sides of the activity. Frm the point of view of the business, it is almost always "better" to have one system, rather than trying to move information back and forth between two.

One of the bigreasons is simply to maintain consistency. So when each part of the business reports on something like "Work In Progress (WIP)" or "Value Added (VA)" they are being measured in the same way.

There is also a cultural aspect to having one system. Maintaining 2 systems maintains a "them and us" mentality which is almost always not productive.

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ERP system in overtaken company

by Shanghai Sam In reply to ERP system in overtaken c ...

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ERP system in overtaken company

by RealGem In reply to ERP system in overtaken c ...

This is a pretty big decision. I would do a bit more analysis. Pay special attention to the potential for cost savings.

ERP systems are notoriously expensive to upgrade (like, in the millions!). Two systems will cost twice as much, and you'll be subject to the upgrade schedules of TWO ERP vendors, which means you have even less control of your resource.

On top of all that, you will be constantly updating your B2B solution as one or the other ERP product changes.

Another thing: unless you had already planned to do this, it may cost extra to "enable" each ERP for B2B. These sorts of things are usually add-ons that cost extra, both up-front and on an annual basis.

This is a complicated situation. Do a good analysis and communicate it well. Your career may be on the line...

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ERP system in overtaken company

by Shanghai Sam In reply to ERP system in overtaken c ...

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ERP system in overtaken company

It sounds like you are shooting at a moving target.
The danger lies in the protocol of the take-over. Is it purely financial or is the intention a full merger on all operational levels with both companies loosing their identity (as much as possible)?
If the first, do not worry and build B2B solution. Might be more expensive but could be more effective quicker.
If the latter, you need indeed consistency in reporting in which case moving towards one ERP is better. Choosing the best one is tricky? You might consider introducing a third system to reduce politics and infighting.
Good luck with your challenge.

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ERP system in overtaken company

by Shanghai Sam In reply to ERP system in overtaken c ...

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ERP system in overtaken company

by janez.vovk In reply to ERP system in overtaken c ...

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