The ERP system in Malaysia was introduced in the year 1986. It was developed by Bupa International Ltd., under license of the Ministry of Finance. Although the ERP system in Malaysia is nearly twenty years old, it has still had significant impact on the way the business in Malaysia runs. Nowadays, nearly all businesses that want to adopt an ERP system have done so. One of the reasons for this is that the steps involved in the ERP implementation in Malaysia have been fairly simple and straightforward, which has helped the country transition from its earlier software-based economy to one based on ERP software and hardware.
The following paragraphs below describe the ERP implementation process in Malaysia, as well as the processes that helped the ERP system in Malaysia to become a success. The first step was to decide upon the ERP system components and vendors. This would depend on the nature of the business in Malaysia, with more specifically, the industries in the petroleum, gas, chemical, electric and mineral-related industries. Consultants were then employed to help businesses in their decision making process and choose the appropriate ERP components. This would usually involve looking at the cost and expenses of implementing the ERP software, as well as the training requirements of the consultants.
After the ERP selection process was completed, the next step for ERP implementation in Malaysia was to develop the ERP architecture. This would take time, but was critical to the success of the ERP system. Next, the ERP structure would need to be defined. This would require a thorough analysis of the operational functions of the enterprise and an evaluation of the existing procedures, processes and workflows. The ERP architect then developed the ERP architecture using the relevant software and would test the application to ensure that it met the design goals.
After ERP system implementation in Malaysia, another important assessment was to identify the functional and organizational structure of the company. This would involve creating a functional and organizational chart to show the difference of individual departments or units within the organization. The chart would also indicate whether the company had a centralized or local management system. Malaysian companies often used their local systems, as the local language and dialect often made it difficult for foreigners to understand the local practices. For ERP implementation in Malaysia, however, it was important to standardize the functional and organizational charts so that everyone could understand the conceptual framework.
A third assessment was used to determine the feasibility of the ERP implementation. For this assessment, enterprises in Malaysia were required to develop and implement the ERP software according to the stipulated ERP software package specifications. The standardization of the packages also served to make sure that the applications were usable and could be effectively implemented by the various departments in the organizations.
There were some significant critical factors that affected the successful implementation of ERP in Malaysia. One of these critical factors was the standardization of the ERP software packages. Another critical factor was the establishment of the infrastructure for support and maintenance of the ERP system. The third critical factor was the establishment of the enterprise system that provided the basic functions for integrating the ERP system into the business.
Based on these three critical factors, an ERP system for Malaysia was successfully implemented. All the major enterprises of Malaysia have an ERP system, and the number of small and medium-sized enterprises has significantly increased over the years. Most of these enterprises are adopting the ERP system because they want to use a Planning System to manage their inventory, sales, and service activities.
Implementing ERP systems in Malaysia is a very complex task because most enterprises do not have the adequate knowledge and experience to design and operate an ERP. This is one of the reasons why organizations have made the decision to convert their current ERP system to an ERP system from a traditional software like Lotus Notes to ERP system from Microsoft Dynamics GP. ERP systems are very complex and most of the organizations need at least two or more qualified ERP system consultants to conduct the ERP migration process. These consultants are mostly involved in the process of reviewing the organization’s current ERP system and determining the requirements of the organizations to convert it to ERP system. After this, the consultants help in the ERP migration projects and conduct training for the work force in the organization.