ERP-system-meeting between consultant and In-House Team
Introduction
No matter what type of business you are in, implementing an “Enterprise Requirements Planning System” (ERP) solution is a critical project that must be taken seriously and must have backing from top management if it is to succeed.
From concerns about cost and demonstrating ROI, to practical considerations about who will manage the process at your organisation, ERP implementation efforts require commitment by a project team and support by business leaders to make sure it will be successful.
To accelerate the ERP implementation process, make sure your project is scoped appropriately and consider having an independent ERP expert on your implementation team.
So what is an Enterprise Requirements Planning System (ERP)?
Put simply, installing an ERP system aims to bring all your legacy systems which have been developed separately over time into one completely integrated piece of software i.e. your ERP system.
By doing this, all your systems will be able to talk to each other and data can be shared amongst the various sub-systems from one common database.
There is no getting around the fact that ERP implementation is a major undertaking. But the process doesn’t have to be painful. With accurate planning and execution, implementing an ERP system should be a smooth process and quickly improve efficiency across your entire organisation.
The 3 Possible Solutions
Given the range of functions that an ERP includes, it should come as no surprise that there are several types of ERP implementation solutions falling into 3 broad types:
1 Build your own custom ERP and program it from the bottom up, though the cost and complexity of taking on such a huge project can make a do-it-yourself approach a poor one. Don’t even contemplate this option, chances are it will be a disaster.
Why re-invent the wheel when there are proven systems available off the shelf.
You are probably thinking “Oh but we are different” So many companies think that the are different, unique, special.
Well the fact is… No! you are not different. You just think you are!
But don’t worry, you are not alone 🙂
2. Purchase on-premise ERP software and install it on your company’s computers and servers.
Before investing in an on-site ERP solution, however, consider this fact:
Two-thirds of mid-size organisations are running old versions of their ERP software!
Why the lag? Organisations often decide that the pain required to re-implement incremental releases is too great, especially since each upgrade means the business risks losing critical customisations and integrations. Keeping ERP technology current is key to maximising its potential, so it’s essential to select a system deployment option that’s easy to update and will preserve custom features.
3. The third more recent technology alternative: a cloud-based ERP solution.
Because the system is cloud-based and managed entirely off site by the ERP vendor, a cloud-based solution means you don’t have to make huge upfront investments in IT hardware and servers, nor worry about dedicating personnel resources to managing it.
In addition, cloud-based implementations are usually much faster and easier to deploy than on-site deployments, and maintenance is much easier since the cloud-based ERP vendor is responsible for keeping the technology up to date.
Most importantly, with cloud technology, product enhancements are painless—customisations and integrations automatically update with system upgrades—so you can always be assured that your business is running with the most advanced capability and latest version.
Get Executive Buy-In and Build Consensus
Getting buy-in from company executives means more than just getting a signature to approve investment in an ERP solution (though that is certainly important); it means educating leadership about what ERP implementation means for the organisation.
More than just software, ERP technology can transform the business, an idea that executives must support before moving forward with any deployment effort. Frequent communication from executives about ERP implementation plans and changing processes are crucial to helping build consensus—and even excitement—across your entire company.
Set Realistic Expectations for ERP Implementation
ERP business software is a powerful technology that can streamline processes, improve visibility, reduce costs, and entirely change the way that your company does business—but it won’t happen overnight. ERP solutions include many complex front-and back-office systems, from accounting and inventory management to ecommerce and CRM, which need to be integrated to create a seamless experience for end users.
This takes careful planning and time to execute. To accelerate the ERP implementation process, make sure your project is scoped appropriately and consider working with an ERP expert or a business consultant with ERP expertise.
Tip: The average NetSuite customer is typically able to implement its ERP system within three months—much less than the on-premise ERP implementation industry average of a year and a half.
Focus on Staff Resources and Strong Project Management
Before starting any ERP implementation, make sure that your organisation has the resources in place to see the project through to completion. This may seem like an obvious point, but many companies begin deployment without resourcing it effectively, resulting in overworked, unhappy employees and a less-than-optimal installation.
Identifying a dedicated project leader and a team for your ERP implementation will help ensure that the project runs seamlessly. For ERP team members, consider reassigning or removing some of their daily job duties so they have sufficient time to concentrate on the task at hand. Identify a team leader with strong project management skills who can facilitate team communication, address any issues that may arise, and keep the ERP implementation on schedule and within budget.
Bring in an external consultant with experience in ERP implementation to guide your internal project team and troubleshoot when things go wrong -which they will at some stage
Keeping these best practices in mind will help you launch your deployment on the right track and keep it there throughout the entire process.
Researching the best ERP implementation option for your organisation, building consensus around the effort, setting realistic expectations, and giving your staff the support they need—these steps take more time, but they result in a more effective ERP experience and a better-run business in the long term.
Last Updated November 2020
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