Even if your organization has picked up the best ERP software, it is still possible that your ERP implementation efforts can can undergo a slow rollout or fail to fully achieve its objectives. You want to avoid ERP implementation failure. All ERP system implementation rollouts are a combination of science and art that consist of planning, implementation and ongoing maintenance.
ERP System Implementation
An ERP software implementation becomes a way of life rather than a project with a tail tale ending point. Organization leaders, especially CFO and CIO, are best served if they have a full understanding of all of the internal business processes within thier organization, plan effectively , evaluate ERP vendors rigorously. It will serve the ERP implementation team well if they identify early on the most effecitve ERP implementation best practices to increase their chances of success.This article will describe some important best practices of ERP system implementation. You are encouraged to explore the rest of our website for additional ideas and tactics that will heldp you in this endeavor.
But before going through it, here are common challenges of ERP implementation, based on Panorama Consulting survey :
- Timelines are often longer than expected
- Poor cost planning resulting in more than 50% of ERP system implementation rollouts to go over budget
- Business benefits are not realized at the level anticipated
One measure of success is if the ERP system implementation effort finishes on time, remains on budget and results in a significant business benefit. But this is not always easy to achieve given the project involves many people both from external and employees who are expected to cooperate and integrate their efforts.
ERP Implementation - Best Practices
You can utilize the following best practices to ensure a successful ERP implementation. Every effective ERP implementation plan should provide you with the best chance for success.
1. Develop a Clear Understanding Within Management of what the organization is trying to achieve with the erp implementation rollout. Start with a cohesive plan of what you wish to achieve. Carefully evaluate the vendors and their ERP implementation deliverables. Get everyone within the organization on the same page and ensure their committment and understanding of the roles they will play in the ERP implementation process.
2. Take the necessary time develop a plan early on before the implementation efforts get underway. Look at customization options.
3. Ensure you have a good grasp of how your organizational processes operate. Focus on the main business objectives. Do not try to do too much and ensure that the ERP software modules you are considering align with your needs.
4. Remember the driving reason why your organization is implementing ERP. Keep the target on maximizng return on investment. Identify performance metrics and conduct a pre and post measure system to evaluate effectiveness of the rollout.
5. Ensure Senior Management is all on the same page. There cannot be a silo mentality such as this is just an information technology adventure, but rather the entire organizations needs to be aligned the needs of the project and steering committee should be formed to address implementation actions.
6. Organizational Project Management needs to cohesive and communication among the implementation team members with the rest of the organization should thrive. A project leader needs to be assign to provide oversight and coordination. Conduct test runs to simulate deliverables utilizing test scripts and address problems. Ensure employees are properly trained on how to utilize the ERP tools and software capabilities. Utilize continous improvement methods to make appropriate modifications.
7. Data Migration is the long pole in the tent and requires early defintion of data scope which is inclusive of master and transactional data. Utilize mapping data techniques and conduct pilot runs and testing simulations.
That’s all the best practice of ERP system implementation I can share with you now. Please let me know if you have some other best practices you would like to share. best of luck and success with your ERP implementation!
Avoiding ERP Implementation Failure:
ERP system – ERP Enterprise Resource Planning Basic and Evolution
ERP software – Finding The Right ERP Software for Small and Midsize Manufacturers
Choose the best ERP Software
Three factors for ERP success
6 Steps to success your ERP project
An anatomy of typical ERP implementation failure