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 ensure that the implementation is 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 the process, why ERP training is important, and more.
1. Define the requirements
Before you examine any aspects of the ERP implementation, you must define the scope of requirements. When describing it, focus on a few key factors such as:
The Selection of Proven Business Processes and System Requirements
Make a complete list of requirements
Identify your pain points and challenges
What systems are currently in use?
Define what you can optimize
Set realistic goals
Keep in mind—the more details you can specify now, the easier it will be to implement in the future. Defining your new ERP requirements precisely also makes it easier to select a system. You can also include this information in the vendor proposal to ensure that all requirements are taken into account before implementation. The options for an enterprise resource planning software package are endless. Each vendor has its own specific advantages and features. Once you’ve identified your pain points and business process needs, selecting a vendor will be much easier.
Select employees who can help with preparation and information gathering and provide feedback. Be sure to involve people from different business units, because they are the ones who will ultimately be using the new system. Don’t limit this project to the IT department alone. Allow selected end users to assist with your selection process.
Don't rush through this important first step!
2. Think outside the box
Avoid unnecessary "customizing" and individual modifications. Any additional customizing of the system that is incorporated into this project usually leads to long-term difficulties with future upgrades, bug fixes, and support.
Research suggests that the customization of ERP systems accounts for the majority of the time spent on an ERP project. These statistics also show that customization can be a necessary evil. However, it is important that you keep these additional upgrades under control to avoid lengthy delays and significant cost overruns.
3. Consider future expansions
During the planning phase, you and your team focused on which features are necessary for the go-live, and that is 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 that aren’t yet necessary to get started.
Keep these features in mind so that you can acquire them as soon as your schedule and budget allow. This step will help you stay focused on the long-term success of your ERP program and evaluate ERP vendors.
4. The Importance of Choosing a Team
As mentioned in Step 1, it is important to involve employees outside the IT department in ERP development. Those who work with the system every day are usually best positioned to identify which features are missing, how business processes can be improved, and how problems in the current system can be pinpointed. Listen to them.
Another major advantage is that the user experience will be smoother if everyone feels they have a say in the process and the new system, rather than suddenly finding themselves faced with the new system. Being presented with a fait accompli is usually very unpleasant. Involve managers and department heads from every functional area. These leaders are responsible for communicating with employees and will help gather and relay information.
Changes to routine are initially seen as negative by most people. A holistic communication strategy therefore helps employees understand why these changes are necessary. When employees are involved in identifying problems and suggesting improvements, some of them emerge as “heroes” who have made the work a lot easier.
Form your teams early on and communicate with them. Create a detailed plan and make sure your vision aligns with that of the company's decision-makers.
5. Training
Training, training, and more training. Be sure to provide adequate training for your staff. If your staff feels fully involved, they’ll be more motivated to participate in user training. You might even be able to get end users to look forward to the new solution with anticipation.
A successful ERP implementation requires a robust training program. If employees don’t know how to use the new system, they won’t be able to make the most of all the new functionality you’ve worked so hard to implement. Skipping this step will result in a less successful implementation.
End-user training is crucial to the success of your ERP implementation. Don't skimp on this part of your ERP budget.
End users who are not well-trained will start relying on workarounds on a daily basis and leave new features unused. This, in turn, will cause problems with many other interfaces and reduce the potential for cost savings.
Good luck.
