Practical Considerations For ERP Implementation

Enterprise resource planning is a growing approach to business that permits the sharing of business information for the purposes of strategic decision making. Investment in an ERP framework is a significant undertaking which is why it is important to adopt a well thought out approach.

The first and foremost consideration prior to selecting an ERP vendor solution is to determine the critical business process that you wish to improve. Using a balanced scorecard assists in this regard. Members from the business units and information technology department function together as a check and balance to ensure that business functional requirements and system process can work together without causing conflict.

The vendor solution is then matched against the selection criteria to determine operational best fit. In some cases, organization wide implementation will be the best approach whereas in other instances a modular approach may be more fitting. Implementing a modular approach allows a company to integrate one unit at a time. To some extent, this is a ‘go slow’ process that allows system wide rollout in an isolated manner. When the solution is built form the round up, companies need to ensure thy have the expertise to carry out the task at hand.

An implementation plan helps to scope and bound the range of activities that comprises the implementation process. A project management framework and the appointment of a team leader to devise and manage the rollout assist with mandating tasks, tracking progress and adapting to the practical demands of integrating the new system within the organization.

Testing and training are activities that are frequently overlooked and not accounted for in operational budgets. Many ERP projects fail because the workers are not empowered to understand and use the full functionality of the system. Without adequate training, the software becomes little more than an expensive calculator. Time is consumed working out the finer details of the system and generating the required information as opposed to creating fast and efficient processes which is what the system was intended for in the first place.

Companies that invest the time and resources into ERP implementation can enjoy significant productivity, improved business transparency and lasting performance improvements that directly impact the bottom line. Before you start commence an ERP project, it is important to take the time to understand the critical success factors that can shape the project outcome.