Countless business owners today rely on enterprise resource planning systems. These systems have been shown to streamline operations while boosting productivity. They give the business an advantage over competitors, which any business owner is sure to appreciate.
However, many businesses struggle to implement the system effectively. They fail to plan or underestimate how the implementation will affect their workers. What does the business need to do to avoid ERP failures?
Know the Scope and Objectives of the Implementation
Every business must determine the scope of the implementation and define the objectives before moving forward with the process. To do so, it needs to call together the management team, those in charge of the various departments, and the individuals who will use the program to gather input on what is needed. If a business doesn’t take this step, project or scope creep becomes a real concern and the implementation may not bring any value to the company.
Choosing an ERP Solution
Selecting the right ERP solution for an organization takes time. With many products to choose from, the purchasing team might become overwhelmed. Research the various vendors and products to find one that fulfills the organization’s needs, taking into account future growth plans when doing so. Subject matter experts become of great help during this process, as do IT professionals.
Bring Together an Implementation Team
The implementation must go smoothly for the project to succeed. Gather people from different departments, project managers within the company, and IT experts to ensure it does. Request outside help if needed to ensure nothing goes wrong. Having a diverse team allows different opinions to be heard, as each person will have a unique perspective.
Establish a Timeline
Implementing an ERP takes time and resources. The implementation team needs to establish a timeline for each part of the project, including planning and training. When creating this timeline, the team must make certain the required resources will be available, along with the staff needed to use these resources.
Change Management
Employees must be trained on the ERP if the company is to see the best return on investment. A lack of training is one of the most commonly cited reasons for ERP implementation failures. With this training, employees will adapt quickly to using the program. A change management strategy also needs to be put into place, so employees know where to turn when they have a concern or need support. This strategy will help the employees look move favorably at this change.
Data Details
To implement an ERP successfully, a company must accurately and seamlessly migrate its data. Before moving any data to the new ERP, analyze and clean it. Then it must be mapped to the ERP’s structure. Robust migration tools are needed and the data must be tested to ensure there are no discrepancies. When completing this testing, ensure the ERP integrates fully with existing systems to prevent interruptions in the data flow.
Implement the ERP in Phases
Don’t implement the ERP company-wide. Phase the implementation in one department at a time, testing and refining the processes with each phase. This allows problems to be caught before they affect the entire organization.
Monitor and Evaluate the ERP
ERP implementation extends beyond the go-live data. Monitoring and evaluating the ERP should be ongoing processes to find areas for improvement, bugs, and more. Establish a feedback look so all users can have input into the working of the system and where changes are needed.
The right ERP program can do wonders for a business, but only if it is implemented correctly. Business owners must carefully plan and prepare for this implementation to ensure it is executed properly. The implementation process is not only about bringing this technology on board. The company must support those who will be using it. When the ERP solution is well-implemented, the business will see enhanced efficiency and productivity while setting itself up for long-term success.
