In our earlier article we talked about the importance of ERP systems for organizations, and how to know if your company is ready for an ERP system. Now we turn the focus towards how to implement such systems. Even if an organization chooses the right ERP system, the process would fail project without effective implementation. Research shows that failed implementation of ERP systems has been a recurring decimal in different organizations. The PSSI Blog reports that Gartner Research shows a nearly 100% failure rate for cloud ERP implementations: https://pssiusa.blog/2017/09/05/gartner-research-predicts-near-100-failure-rate-for-cloud-erp-projects-by-2018/ So here are six factors that can improve a company’s odds of a successful ERP implementation:
- Project preparation: ERP implementation largely depends on the preparation made beforehand and how well the created strategies cater to the needs of the organization. To ensure the success of ERP implementation, it is thus essential for the proper preparations to be made towards the business strategy, the strategy of the ERP as well as IT strategy. Proper efforts should also be made towards preparing members of the organization for the changes that may be associated with ERP implementation.
- Budget: The budget for ERP implementation has been identified as a key success factor. As the implementation process unfolds, budget cuts and adjustments tend to be affected by organizations. These modifications typically affect the success of ERP implementation. It is thus advised that proper budgeting is carried out and modification avoided jeopardizing successful ERP implementation.
- Management commitment: The level of commitment of the management of an organization to the implementation of ERP has also been identified as a key success factor largely because the involvement of the management of an organization conveys the importance of the process to the employees. Management involvement in ERP implementation is thus largely encouraged at different levels, from project inception to resolution of arising issues.
- Project scope: The identification of the scope of the project as well as the design of an efficient strategy for ERP implementation is essential for successful implementation. The scope of the project will define activities that will be coordinated by the system. When these activities are identified, appropriate plans can also be made for activities not integrated into the ERP system.
- Project team: The effective implementation of ERP is also determined by the team that is in charge of the process. The team should comprise full-time members such as a project manager for proper implementation. The core team and consultants should also be able to establish an excellent working relationship. It is also necessary to emphasize the importance of proper communication between the implementation team and the employees of the organization.
- Post-implementation activities: The implementation of ERP systems results in changes in the general operations of the organization. Thus, it is essential for provisions to be made for change management as ERP systems are implemented. Employees should be trained on managing these change that would be associated with the ERP, and this training could come from an in-house team that could be trained by consultants.
Successful ERP implementation requires the efforts of all involved parties, from the core team to consultants and the management of the organization towards the incorporation of the processes and acceptance of necessary change.
ERP Advisers will work closely with you to ensure a winning strategy and outcome to help your business grow. Please call us at 905.332.5469.