In a recent Enterprise Resource Planning (ERP) implementation survey, Panorama Consulting Solutions identified 60% of respondents received under half of the expected benefits from their ERP implementation.
For businesses considering investing in ERP these statistics are alarming. For businesses embarking on an ERP journey, whether replacing an existing solution or buying for the first time, it is important to understand an ERP implementation is very complex. ERP impacts on both data and processes, as well as removing departmental barriers within an organisation. For the benefits of a successful ERP implementation to be realised it is essential for the process to be carefully considered.
Xperience Group’s top tips for ERP success:
1. Leader sponsorship
As with any project undertaken by a business it is integral for it to be lead from the top. Without leadership buy-in and ongoing support it is impossible for a project to succeed. It is vital for business leaders to communicate a consistent message and reinforce the business need.
2. “Fail to prepare, prepare to fail”
Careful planning, with support from your chosen partner, will help to ensure your ERP project is successful. ERP has multiple touch points across a business and therefore many people will be involved in the project. Planning is an opportunity for clear project stages to be outlined, responsibilities to be assigned and milestones set.
3. User participation and engagement
The end user is essential for ERP implementation success, because the chosen system is only as good as the information entered. To get users to buy-in to a project it is important for them to recognise the business need and the benefits of the proposed system and this can only be achieved by communication.
4. Thorough testing
The ERP provider will conduct testing, however it is important to take ownership and conduct additional testing before go live. This may seem like duplicating efforts, but it is preferable to identify issues within a test environment as the impact on a business is lesser.
Training is essential to success, yet it is the one area where most businesses try to cut corners. A new ERP system is a big change for everyone, as it is a business wide solution, therefore it is important to invest in training for each business function ensuring capabilities, best practices and business value is understood.