An ERP implementation is one of the most daunting and potentially rewarding initiatives a company can take on, but it can make or break an executive’s career. So, how can you set yourself up for success and where do you start? In this article, the enterprise software experts at ERP Advisors Group tap into their years of experience on how to prepare for a successful enterprise software selection and implementation.
An ERP implementation is one of the most daunting and potentially rewarding initiatives a company can take on, but it can make or break an executive’s career. So, how can you set yourself up for success, and where do you start? In this article, the enterprise software experts at ERP Advisors Group tap into their years of experience on how to prepare for a successful enterprise software selection and implementation.
A roadmap is the necessary starting point for any ERP project, and you should begin developing it as soon as you identify your organization’s need for change.
This should serve as the ultimate guide, tying all elements of your project together and encompassing an analysis of your organization’s strategy, people, processes, and technology. Ultimately, it establishes if you need a new ERP, why a new system is needed, and how you are going to move forward with the project.
To create a roadmap, start by analyzing your organization. Break down departments by functions and processes, and identify the issues within each. Then, define the goals and objectives for solving them.
Establish business needs, goals, and objectives throughout each function/department. What are their needs, and how can they be addressed? Does the system need to change or the internal processes/culture? Look at each functional area through four lenses:
Identify the ideal future state to support your strategy and functionality needs in each area of the business. Then conduct research to see if there are potentially viable solutions on the market to accomplish this.
Outline the total cost of ownership and the benefits of a new ERP, then conduct a cost-benefit analysis.
Plan initiatives and project phases.
a. Initiatives required and how they tie into one another.
b. Major milestones and elements. This can include:
c. Establish a realistic timeline.
5. Properly position resources and assign roles. We’ve all heard the stories of ERP implementations going massively over-budget and over-schedule. While there can be many reasons for this, the most common is simply a failure to get a realistic view of the time, effort, and resources required before starting the implementation. Once you fall behind, it can be very difficult to catch up.
An ERP implementation is never a one-size-fits-all approach, and each element needs to be intentionally planned out and executed. This is why the project roadmap is the foundation that paves the way for a successful implementation. It allows you to define what success means for your organization based on your specific needs, because it is different for everyone.
Goals need to be realistic and outlined from the start, or failure is inevitable. This is where cross-departmental buy-in becomes crucial. Aligning with organizational goals is essential to ensure your team is set to achieve an ideal future state and accept the new system.
Two different approaches will determine how and when those components are rolled out:
Big Bang vs. Minimum Viable Product (MVP):
Big Bang: This approach involves moving ALL data and company functions from your legacy ERP to the new system all at once, with one go-live date. While some favor this approach, it poses a high risk because when issues arise, it can impact the entire organization.
Undergoing an ERP implementation when you don’t need to.
These projects are time-consuming and high-risk. If you don’t have executive buy-in, a clear need to change, and the resources (time, money, manpower), you simply should not do it.
Not identifying potentially viable software solutions with the ability to address your problems before beginning the project.
If you don’t have a clear pathway for evaluation in order to reach your desired outcome, you will never succeed.
Not strategically planning out project elements and phases.
Oftentimes, major elements like data migration efforts or integrations aren’t thought through until it’s too late. You can’t underestimate the importance of these steps in ensuring project success.
Most failures happen on the client side.
Unbeknownst to most, the client is responsible for setting the stage for their entire project and ensuring that the proper time and resources are allocated at each phase. You can select the right solution, software vendor, and implementation partner, but if the client doesn’t garner executive support, accurately plan out resources, execute internal tasks like user training, and set realistic expectations, the project will fail.
Clients often unintentionally hold misconceptions regarding ERP implementation that can be detrimental to project success. It is important to identify and understand the impact of these misconceptions on the project.
Misconception #1: An ERP project should be treated as an IT project.
One of the biggest misconceptions that we see clients fall victim to is the belief that their ERP implementation is simply an IT project for the IT department to handle. Ultimately, this is not the case and can lead to improperly configured systems and a lack of user adoption. An ERP project is a full organization transformation, not only of your systems, but of processes and people. Therefore, Subject Matter Experts (SMEs) from every part of the organization must be involved in system configuration to ensure it is built for the people actually using it.
Misconception #2: Data is not as important as other factors of an ERP project.
Data is the most important factor in an ERP transformation project, and data management and transformation should be key considerations when developing your project roadmap. You need to do a full cleanup and audit of legacy system data before beginning an ERP project or data migration. If there aren’t single sources of truth, your team won’t be able to trust the data in the new system.
Misconception #3: An ERP system equipped with AI can think for you.
AI cannot replace real people with real minds. AI is only as good as the data it’s fed, and it requires parameters to effectively perform tasks. This is why people should let AI do the repetitive work, like deduplication or data entry, and leave the thinking to the humans to establish governance and control. AI tools are being increasingly used to facilitate ERP implementations and configure the system more quickly to your unique processes and workflows. However, even if the configuration and custom coding can be done more quickly, you cannot skip crucial steps like Walkthroughs, User Acceptance Testing, User Training, and Change Management to ensure the system works correctly and your people are acclimated to their new procedures and workflows.
We have a holistic view of the software industry and understand the resources necessary to complete an ERP transformation project, because that is all we do. We have guided clients through the implementation process hundreds of times with our methodology that accounts for each part of their business and focuses on long-term success. Companies that don’t have the capacity to take on an ERP project while focusing on their day-to-day functions benefit from a partnership with EAG. We will step in to develop a project roadmap, establish realistic expectations, provide guidance, and advocate for our clients through decades of expertise, ensuring their business can continue to grow without disruption.
Starting on an ERP project without an implementation roadmap is like going on a road trip without a compass or a map. You will inevitably find yourself lost and far from your destination. But before you embark on this journey, the most important thing to remember is this: don’t do it unless you absolutely must! And if you must, then be well-prepared and have alignment across your entire team. Anywhere from 50% - 75% of ERP projects fail to meet initial business case goals, often because they are undervalued or underestimated. There will always be risk, but it’s how you plan to mitigate risk and define your ultimate goals that will determine the success of your ERP implementation. Schedule a free consultation with one of our experts today!