Editing Enterprise resource planning (section)

===Process preparation===
Implementing ERP typically requires changes in existing business processes.<ref>Turban et al. (2008). ''Information Technology for Management, Transforming Organizations in the Digital Economy''. Massachusetts: John Wiley & Sons, Inc., pp. 300–343. {{ISBN|978-0-471-78712-9}}</ref> Poor understanding of needed process changes prior to starting implementation is a main reason for project failure.<ref>{{cite journal | last1 = Brown | first1 = C. | last2 = Vessey | first2 = I. | title = Managing the Next Wave of Enterprise Systems: Leveraging Lessons from ERP | journal = MIS Quarterly Executive | volume = 2 | issue = 1| year = 2003 }}</ref> The difficulties could be related to the system, business process, infrastructure, training, or lack of motivation.

It is therefore crucial that organizations thoroughly analyze processes before they deploy an ERP software. Analysis can identify opportunities for process modernization. It also enables an assessment of the alignment of current processes with those provided by the ERP system. Research indicates that risk of business process mismatch is decreased by:
* Linking current processes to the organization's strategy
* Analyzing the effectiveness of each process
* Understanding existing automated solutions<ref>King. W., "Ensuring ERP implementation success," ''Information Systems Management'', Summer 2005.</ref><ref>Yusuf, Y., A. Gunasekaran, and M. Abthorpe, "Enterprise Information Systems Project Implementation: A Case Study of ERP in Rolls-Royce," ''International Journal of Production Economics'', 87(3), February 2004.</ref>

ERP implementation is considerably more difficult (and politically charged) in decentralized organizations, because they often have different processes, business rules, data semantics, authorization hierarchies, and decision centers.<ref>{{cite web |title=Requirements Engineering for Cross-organizational ERP Implementation: Undocumented Assumptions and Potential Mismatches |first1=Maya |last1=Daneva |author2=Roel Wieringa |author2-link=Roel Wieringa |publisher=University of Twente |url=http://www.vital-project.org/papers/Daneva-Wieringa-Camera-Ready-RE-Paper.pdf |access-date=July 12, 2008 |archive-date=5 July 2010 |archive-url=https://web.archive.org/web/20100705020710/http://www.vital-project.org/papers/Daneva-Wieringa-Camera-Ready-RE-Paper.pdf |url-status=dead }}</ref> This may require migrating some business units before others, delaying implementation to work through the necessary changes for each unit, possibly reducing integration (e.g., linking via [[master data management]]) or customizing the system to meet specific needs.<ref name="Thomas H. Davenport 1998">Thomas H. Davenport, "Putting the Enterprise into the Enterprise System", ''Harvard Business Review'', July–August 1998.</ref>

A potential disadvantage is that adopting "standard" processes can lead to a loss of [[competitive advantage]]. While this has happened, losses in one area are often offset by gains in other areas, increasing overall competitive advantage.<ref>Turban et al. (2008). ''Information Technology for Management, Transforming Organizations in the Digital Economy''. Massachusetts: John Wiley & Sons, Inc., p. 320. {{ISBN|978-0-471-78712-9}}</ref><ref>[[Bruce Dehning|Dehning, B.]] and T.Stratopoulos, 'Determinants of a Sustainable Competitive Advantage Due to an IT-enabled Strategy,' Journal of Strategic Information Systems, Vol. 12, 2003</ref>