The success of an ERP implementation depends on many variables. Therefore, it is impossible to have complete control over the project. However, you can significantly increase the chances of success by having a grip on a few factors that are critical:
1. To implement is to change
A new ERP system almost always means a new way of working. From management to the workshop, from sales to administration, the whole organization has to deal with change. Change management is therefore an important part of the project from start to finish. Involve employees in the project from the selection of the new system until after going live. You do this by keeping them well informed, letting them participate in deciding on package selection, process changes and system design, and by offering them optimal support for the changes in their daily work. Even after going live, this team will continue to be involved in changes (read optimizations).
2. Pay attention to both the organization and ICT
ERP implementations are often treated as ICT projects. While they deserve much better the qualification 'business project' because of the impact on the entire organization. An ERP implementation is an excellent time to scrutinize the organization at all levels and assess where improvements can be made. Indeed, if you do not pay attention to the organization, you will never be able to gain maximum benefit from the software. The biggest improvements are in the process; the software helps to carry them out as efficiently as possible.
3. Ensure clearly defined outcomes
An ERP project has a beginning and an end. Within that period and within the framework that you define together, you aim for the best possible results. It is important to clearly define these results in advance. Strive for goals that help the organization move forward, but are realistic (time/quality/budget). By setting goals, you can focus on what is really important and afterwards evaluate whether the project has brought you what you expected. It also keeps the scope of your project manageable and guarantees a successful live go.
4. Manage expectations based on results.
Not everyone has the same expectations of a new ERP system. Where some see it as a redundant and laborious process, others think it is the golden grail that makes all problems disappear like snow in the sun. Both expectations are unrealistic and undesirable during the project. Explain clearly what benefits can be expected with the new system, but also certainly what cannot or should not be expected. This is an ongoing process!
5. Ensure clearly defined roles and responsibilities
An organization entering an ERP implementation does so with a team that includes members from various departments. Clearly agree in advance who does what and who is responsible for what. Then everyone realizes what is expected of them, how much time they are spending on the project and what decisions and activities they are responsible for. Proactive monitoring of this is crucial.
6. Adopt a structured project approach.
There are plenty of examples of ERP projects that get out of hand in terms of costs, fail to meet important deadlines or even go completely haywire and never get to a go-live. An inadequate or unstructured project approach is perhaps the main cause of this. In consultation with the software vendor, choose a structured, step-by-step project methodology that has proven successful with your type of organization. This will allow you to shift gears in a timely manner when things don't go to plan and keep the project on track. Pragmatic structuring is the key to success.
Do you have a grip on these 6 factors? Then you are well on your way to making ERP implementation a success!
Alex Bouwmeester is Project Manager Europe at Dysel and accompanies the customer from start to finish in the implementation.
