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What are the important elements to cover when planning an ERP implementation?
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3 Answers
So many elements, Caty! But these are a few of my 'favorites' that are sometimes missed or short-changed, resulting in potential delays and disappointments later.
1. Assemble a multi-department project team, with intended end users as well as management. Make sure the team members are able to make a solid time commitment that is discussed and agreed to upfront. Team members should be well-versed in their specific roles in the organization as well as how a new ERP system is supposed to transform, change, enhance, or support the organization's broad goals.
2. Perform an in-depth analysis of business processes and information flow. This is often a good step to engage a consultant who can help facilitate and document the sessions. It also helps to have someone out of the process who can challenge some of the information, determine the business reason behind certain decisions, and get down to the 'why' of things.
3. After determining the current state of affairs, perform similar analysis to determine where the business wants to go. What processes need to change, become more efficient, or can be removed? How does each process support the current and future goals and direction of the organization? What must be changed, what shouldn't change, and what is negotiable?
These steps are essential to setting expectations and direction. They are essential for ensuring that technology projects play a role in moving the business forward rather than being seen as necessary evils. The planning, thinking, and documenting build the foundation for all that comes after.
Dana's advice is spot-on, and I'd like to add to it from scheduling and resource allocation perspectives.
Given the extent of the organizational changes that are undertaken, ERP implementation projects can't be successfully delivered if they're done on a part-time basis. Changes such as process re-engineering and redefined organizational structures require full commitment.
From a scheduling perspective, companies should plan the project as a full-time endeavor. To do so, they need to be prepared to allocate their strongest departmental people to the project for at least 75% of their working time. This is often times the genesis of an internal conflict - the best people need to be largely removed from day-to-day operations.
Thus, when planning an ERP project, businesses should address foreseeable operational vacuums. For many, planning should include backfilling.
To summarize, when planning ERP projects, businesses should 1) schedule the project as a full-time endeavor, and 2) plan to address any resource gaps that may arise as a result of these full-time commitments.
Agree with both Dana and Jonathan. Assuming the vision and direction of the company and processes/work flows are agreed upon prior to implementation, below are my top five critical success factors:
1. Executive sponsorship/committee and support: Without the key executives holding people accountable and providing guidance and support as appropriate, the chances for a successful ERP deployment are looking dim. It will be too easy for people to avoid their implementation responsibility as other pressing issues will always receive higher priority
2. Select a project manager: A person with broad knowledge of the company’s ERP solution vision, business, processes, respect of the Executive sponsor/committee and the personality strength to work and communicate effectively across functional lines, the implementation team, and the Executive sponsor/committee.
3. Cross functional team assigned: It is imperative that an adequate number of key personnel from all impacted functions be assigned to the implementation team as they will be relied upon to make important workflow decisions, obtain input at the appropriate time and communicate decisions and status to others.
4. Test prior to “go-live”: Adequate testing needs to be performed to ensure that all the “kinks” are worked out prior to flipping the “go-live” switch. Case studies for various scenarios should be run and analyzed.
5. Training for all users: Don’t skimp on training. The more knowledgeable and power users the company has the better. The ability to really understand and know the system including the magical “tips and tricks” will pay itself back many times over.
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