Successful Implementation of ERP
Companies today have realized the benefits of having an ERP system in place. However, an ERP implementation has several phases to it and if
· 2 min read
1. Support of the Upper Management
The upper management should always be closely associated with an ERP implementation. Having a top-down approach will ensure the success of ERP Implementation. This is because the top management can understand the company’s ability to adopt the changes and will push for the application until the last level, guaranteeing a faster implementation. On the other hand, a bottoms-up approach will not result in a very smooth implementation.
2. The Comfort of End Users
People are resistant to changes. And this holds true for ERP too. For instance, if you are implementing an ERP process in the manufacturing sector, you have to first understand the people who will use it. While the corporate people will accept it willingly, the people on the shop floors will definitely resist it. This stems from the fact that the shop floor people are scared of losing their jobs if you initiate any kind of technological changes. To overcome this, show the user benefits of the ERP Implementation right at the start. For a successful ERP implementation, it is important to create comfort for the application amongst the people who will be using it.
3. Avoid Excessive Customization
ERP is like a lubricant that will help your business run faster. Many times, people mold the ERP system to be implemented to fit their business processes. For a successful ERP implementation. However, it is much easier to slightly bend the business process rather than the ERP system. Most ERP systems don’t fit perfectly into an organization, due to different businesses and mindsets of people. Hence, instead of totally customizing an ERP system, it is more preferable to do a little bit of business re-engineering.
4. Get the Low Hanging Fruits First
For a successful ERP implementation, it is recommended not to expect a 100% fit for your organization, initially. Any new implementation will have a block. It is always encouraged to first implement 70 to 80% functionality of the ERP software and then concentrate on the remaining 20% complexity. In this way, you will have quick gains among your stakeholders and complete the project on time. For instance, a certain company, while going for an ERP implementation, decided to first focus on solving 20% of the complexity, instead of implementing 80% of the functionality, which was easier. After rebuilding and reprograming, the implementation stretched from a deadline of four to six months and all the resources were allocated towards addressing the problems. This also delayed the implementation of 80% of the processes.
5. Training for smooth change management:
Employee training is very important for any implementation. For a successful ERP implementation, it is necessary to train the employees properly, after convincing them about its various benefits. Providing incentives could be one way to encourage quick learning among employees. Another method could be showing the employees how the implementation can help them address certain difficulties they might be facing in their day-to-day operations.