Shane Co., a Colorado-based jewelry store retailer, filed for Chapter 11 bankruptcy in Denver on January 12, citing a mismanaged SAP implementation as a key factor of its financial difficulties. To help clients and the public better understand the scope of Shane Co.’s ERP troubles – and how companies can avoid similar situations – Panorama Consulting Group, a Denver-based independent consulting firm, will present a free webcast, “Lessons Learned From Shane Co.’s ERP Failure,” on Thursday, January 29 at 11 a.m. EST.
Key Steps to Realize the Full Benefits of an ERP System
- Invest time in ERP software selection. Small and mid-sized businesses have dozens of viable software options to choose from. Companies must take the time to evaluate and select the ERP system appropriate for their needs.
- Adequately manage project scope and cost. A company must balance its annual revenue with the cost of an ERP implementation.
- Create realistic budget and implementation plans. Any company considering a new ERP system must understand software companies may understate the cost and duration of an ERP implementation in order to close the deal. An independent ERP evaluation will often alleviate such mismanagement of expectations.
- Define and test business requirements and workflows. In order to ensure maximum effectiveness and minimum business interruptions, companies must clearly define their requirements – and thoroughly test their ERP systems – prior to go-live.