Now is a Terrible Time to Purchase New ERP Software
In 2008, Panorama Consulting Group completed a survey of companies that were engaged in or had completed an ERP implementation. From 1,300 responses we compiled a list of eight traits found in successful ERP implementation.
Trait # 1 – Focus on Business Process and Requirements
- Understand how your business operates
- Define and prioritize your key business requirements
- Business requirements should be defined during selection and refined throughout implementation
- Don’t overemphasize the software’s technical capabilities if they are not aligned with your needs
Trait #2 – Focus on Achieving a Positive ROI
- Develop a specific and comprehensive business case prior to committing to an ERP solution
- Business benefits should be at least as tangible as the defined solution cost
- Establish key performance measures
- Set baselines and targets for key performance measures
- Track post-implementation performance
Trait #3 – Project Management and Resource Commitment is Key
- Have a strong project manager to support and participate in the project
- Leverage experienced resources including Subject Matter Experts
- Develop strong project controls
- Implement a Risk Management Plan with mitigation steps
- Conduct ongoing phase reviews throughout implementation
Trait #4 – Secure Executive Commitment
- Support at the CEO level isn’t enough. There must be vigorous support from all management members including the head of the IT department
- Establish regular project reviews with executive or steering committee members
Trait #5 – Take Time to Plan
- Make sure you do it right, don’t just launch the project
- Take time to validate the software vendor’s implementation plan and their understanding of your business requirements
- Budget time to thoroughly test new business processes, security roles, customizations, etc.
- The more time you spend planning the less time and money you will spend later
- Communicate, Communicate, Communicate to employees and other stakeholders
Trait #6 – Focus on Data Migration Early
- Define a data migration strategy up front including master (Customer, Vendor, Product) and transactional (Open PO, Open Invoice) data
- Communicate data migration plans
- It’s never too early to begin scrubbing and mapping data
- Migrated data should be thoroughly verified during Conference Room Pilots and testing
- Remember what happens to “garbage data”
- Don’t forget to plan for historical data and archival and access of data not being migrated
Trait #7 – Provide Adequate Training and Change Management
- ERP implementations involve significant change for the whole organization, including employees. Plan accordingly.
- Training, change management and job design are critical for successful ERP implementations
- ERP functional training should focus on business work flows rather than transactions. Don’t forget technical training.
- Train-the-trainer is a tried and true approach that embeds knowledge into the organization
Trait #8 – Know Why You Are Implementing An ERP System
- Don’t blindly follow what others did in their implementations
- Clearly understand what you are trying to accomplish with your ERP implementation
- Have clearly defined goals and objectives
- Look for lessons learned from successful and unsuccessful ERP implementations
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