Implementing an ERP system
How do you successfully implement an ERP system? Below are 5 important steps that we recommend you go through first.
1. Which people
A successful ERP implementation depends on involving the right people, at the right time and in the right way. Ultimately, no other decision is more important than the choice of the project team itself. Be smart when putting together the right internal team (owners, managers, executives and employees) so that you have the best information available. The size of the team will vary over time, but a core group of people will be involved throughout the entire project. From determining the scope and functions of the new system, to processing documentation and testing and training. It is the insight and participation of these key people that can make the biggest difference in the outcome of the implementation.
2. Document the process
The frustrations, inefficiency and shortcomings of the existing system have probably led to an increasing number of workarounds that are currently necessary. In fact, it is precisely these problems that have led to the search for a replacement ERP system. It is now time to 'formalize' these workarounds, at least in terms of a process document: What is the purpose of the process? What are the current steps in the process? Which of the steps are currently supported, and which now require a workaround?
The shortcomings in the current system, and the workarounds that have been created to work around them, are critical information. When it is time to choose a new system, these process documents can form the basis for an objective comparison of the replacement candidates.
3. Set the right priorities
When searching for a new system, it can be tempting to include every possible change or improvement that you or someone else can think of. Documenting the processes alone, and a short survey of your colleagues, will produce a long "wish list" of improvements. Years of frustrations will provide plenty of material. This is a good starting point, but this list must first be thoroughly reviewed and prioritized.
A successful ERP implementation will focus only on a carefully selected and ranked list of priorities. Start with the "everything" list. Then identify all functions, processes and analyses that have the highest priority, then the second priority, etc. Some items on the wish list will be business-critical and essential to the success of the company, while others will be very beneficial, but not quite first priority. This ranked set of priorities is essential for the next step.
4. Select the best ERP system
Armed with a set of process documents and a prioritized list of functionalities, we can begin the search. Where to start? Use the priority list and decide whether you need a "general" product with a strong set of core properties and functions, fast implementation and broad applicability, or a more specialized and targeted solution designed for your industry and perhaps even tailored to your own specifications.
The range of options for a replacement ERP system is extensive, with choices for implementation method, size and scale, and every budget. The key to making the right choice comes after the first three steps. Does the proposed system support my existing processes without the workarounds? Is the new system an improvement on my existing processes, does it provide greater efficiency and enable people to collaborate better? Can the new system support future growth, higher volumes, or new ventures?
5. Select an ERP implementation partner
During the selection process for the new ERP system, you make the final choice, and that is the implementation partner. Choose carefully; this decision is important. The ERP partner is responsible for delivering your vision, developed by your key people and based on your main priorities. Does the partner have the technical expertise for the project that needs to be started? Does the partner work according to a defined implementation methodology? Does the partner have an approach that is compatible with your own company culture and personality?
For every ERP implementation, it is the collaboration between your project team and the ERP partner that determines the ultimate success or failure of the project.
A successful ERP implementation does not require magic. It is the result of careful product selection and collaboration with the right partner.
Take advantage of these five important steps and take the next step with your company.
