Many ERP implementations do not go as expected. The project takes too long, the costs are too high and, most important: the intended benefits for the company are not or only partially achieved. With these 6 steps, your ERP implementation will stay within scope and increase the chances of realizing benefits for your company.
1. Understand the current situation
Before you start selecting and implementing an ERP system, you need to understand your company's current situation. How do you work now, with what systems and why does it need improvement? What are the main pain points and frustrations among employees and what negative impact does this have on the success of your business? This requires interviews with employees in all departments and a comprehensive inventory of the organization.
2. Set clear goals
Once you know how the flag is flying within the company, it is time to make improvements. Ideally, you would like to tackle everything right away, but that is not realistic. An ERP implementation is a far-reaching project and to make it a success it is important to focus on the main points. Therefore, set clear, realistic goals that you want to achieve with the ERP project and choose a partner and ERP system that will help you achieve them.
3. Create support in the organization
You can be fully behind the project, but that is not enough. The rest of the organization must also recognize that the change is necessary. There must be support for the ERP implementation in all parts of the organization. Management must support the project, but end users in all departments must also recognize that the ERP system will make their work easier. Without support in the organization, the project is doomed to fail.
"The scope of the project should be well defined and the project schedule should provide guidance and clarity."
4. Establish a clear project plan
You know what you want and the whole organization is ready. A common mistake in ERP projects is to then get started without a clear project plan. Make sure you clearly document how the project will proceed. Who will do what, when and with what result? The scope of the project must be clearly defined and the project planning must provide support and clarity. Only with a clear project plan can you make timely adjustments, hold people accountable and complete the project on time and within budget.
5. Keep appointments
Does someone suddenly want to expand the scope of the project? Does one of the key users not have time to do his or her share of the work? Is there no or insufficient testing? These are all serious threats to the project. Make sure everyone sticks to the agreements made and intervene immediately when this does not happen. A scope change or postponement of work are only allowed if the project steering committee deems it acceptable or necessary and thus agrees to it.
6. Measure results and adjust as needed
Even during ERP implementation, it is important to measure results. Is the process indeed much faster now? Are you gaining insights you didn't have before? Where necessary, you can make adjustments. For example, by changing processes, adjusting the setup or spending extra time on a subject during user training. Even after going live, continuously measuring and monitoring whether you are achieving the intended results is enormously important.
These steps do not guarantee success, as guarantees are unfortunately impossible. But by following these steps, you will be better prepared for setbacks and avoid some of the biggest pitfalls in ERP implementations.
Ivan Dale is Project Manager at Dysel North America and in that role manages the team of consultants to achieve successful projects along with clients.
