Briefly explain the critical success factors for implementation of Enterprise Resource Planning (ERP) in an organization.

A lot has been said about the competitive advantage provided by Enterprise Resource Planning (ERP). An organization decides to take the plunge into the ERP route. The consultants will be hired to bring the "best practices" in the industry. It requires both the knowledge; functional knowledge as well as the software programming skills. The following factors are critical in ERP success. First and foremost is the top management commitment: The large investments needed to implement ERP ensure that the decisions are invariably taken at the top management level. It is fortunate, but not sufficient. This ensures top management involvement, but it is not tantamount to top management commitment. The management commitment involves the management of change. ERP is likely to turn the organization "upside down" unleashing lots of energy from vested interests. Unless top management is involved directly, it is impossible for any line manager to face the oppression to such changes. Another real test of top management commitment is the resistance to over-customization, particularly in the Indian context. One reason why many computerization efforts in Indian organizations have not been particularly successful is not having "systems in place". ERP implementation is a golden opportunity to put such "systems in place". Thanks to excellent IT skills available in many Indian organizations, wherein there is a strong tendency to "do it your way" leading to large-scale customization. It is better to follow the "standard" way and concentrate on "innovative" ways of doing better business.