5 Steps to a Successful ERP Implementation
Is it time to consider a new ERP system for your organization? And is it your job to make sure it's a success? These 5 tips will help you achieve a smooth implementation. You'll learn how to define your scope, involve the right people in your process, why ERP training is important, and more.
1. Define the Requirements
Before you dive into any aspects of ERP implementation, you need to define the scope of requirements. When describing them, focus on a few key factors like:
Selecting proven business processes and system requirements
Create a complete list of requirements
Define your pain points and challenges
What systems are you currently using?
Define what you can optimize
Set realistic goals
Remember – the more details you can iron out now, the smoother the implementation will be down the road. Clearly defining your new ERP requirements also makes system selection easier. You can even include this information in your vendor proposal to ensure all requirements are considered before implementation. The choices for an Enterprise Resource Planning software package are endless. Every vendor has its own specific advantages and features. Once you've addressed your pain points and business process needs, selecting a vendor will be much simpler.
Pick employees who can help with preparation, information gathering, and feedback. Make sure to involve people from different business areas, because they're the ones who will ultimately be using the new system. Don't keep this project exclusively within the IT department. Allow selected end-users to help with your selection process.
Don't rush through this crucial first step!
2. Think Outside the Box
Avoid unnecessary "customizing" and individual adaptations. Every additional customization of the system built into this project usually brings long-term difficulties regarding future upgrades, bug fixes, and support.
Research indicates that individual customizing of ERP systems takes up most of an ERP project's time. These statistics also show that customizing can be a necessary evil. However, it's important that you keep these additional upgrades under control to avoid lengthy delays and major cost overruns.
3. Consider Future Expansions
During planning, you and your team focused on which functions are necessary for the go-live, and that's extremely important. However, you also need to think about the "next steps" that will need to work in the future. During Step #1, you can create a "wish list" of features that staff have requested but aren't yet essential to get started.
Keep these features handy so they can be acquired once time and budget allow. This step helps you keep an eye on the long-term success of your ERP program and evaluate ERP vendors.
4. The Importance of Team Selection
As mentioned in Step 1, it's important to involve employees outside the IT department in ERP development. Those who work with the system every day can usually best articulate which functionalities are missing, how business processes can be improved, and where problems lie in the current system. Listen to them.
A big advantage here is that the user experience will be smoother if everyone feels they have a voice in the process and the new system, instead of just suddenly finding themselves in front of it. Being presented with a fait accompli is usually very unpleasant. Involve managers and department heads from every functional area. These leaders are responsible for talking with employees and will help gather and relay information.
Changes to routine are usually seen as negative by most people at first. A holistic communication strategy, therefore, helps employees build an understanding of why this change is necessary. If employees are involved in identifying pain points and suggesting improvements, you'll essentially create "heroes" among them who have made the work much easier.
Get your teams set up early and keep the communication flowing. Draft a solid plan and make sure your vision aligns with the key decision-makers in the company.
5. Training
Training, training, and more training! Make sure your staff gets proper instruction. If they're well-engaged, they'll be more motivated for user training. You might even get end-users eagerly anticipating the new solution.
A successful ERP implementation needs a robust training program. If your employees don't know how to use the new system, they won't get the most out of all that new functionality you worked so hard on. Skipping this step will definitely make the rollout less successful.
End-user training is absolutely critical for your successful ERP implementation. Don't skimp on this part of your ERP budget.
End-users who aren't properly trained will start relying on daily workarounds and leave new functionalities untouched. This, in turn, will cause issues with many other interfaces and reduce potential savings.
Good luck!
