Factors Often Overlooked Before Implementing ERP

Factors Often Overlooked Before Implementing ERP

The great principle towards implementing an ERP (Enterprise Resource Planning) system is one that heralds a visionary drive for an organization's future. As an organization thrives in its business, the complexity of more business units and departments manned by additional staff grows in exponential form. If the organization is long steeped in certain ways of carrying out work processes which are in direct contrast with new business techniques, it is a tough job to introduce new methods.

Before embarking on such a complex project, the top management needs to set clear objectives on what they intend to achieve and directives on how it's to be done. Without the captain steering the course, the team of rowers will go in all directions or sit idly by. More often than not, a certain level of change management needs to be put in place. By running a series of sessions with all departments and levels of staff, a clear picture can then be painted on current company conditions and staff sentiments. This can also form part of the blueprint towards planning a successful ERP implementation. The risk of overlooking a change management exercise is not getting staff commitment and acceptance in the future. So often, companies tend to treat their staff as liabilities and not assets. Hence, starting off on the correct foot is a sure path to success.

Another area for serious consideration is detail review of current work processes as compared to the official version. However much everyone claims to follow the rules, short cuts and rules are sometimes bent to quicken the process. This is easily done with manual practices. Once an Enterprise Resource Planning system is put in place, every step of a process needs to be adhered to for the sake of accountability and audit trails. Hence, it's important to review all processes and steps to weed out obsolete and ineffective ones. Normally a business process re-engineering project can take as long a time or more to complete as the ERP project itself. To save time and cost, some organizations choose to run both projects simultaneously. A risk in doing so is discovering surprises and causing delay as changes and decisions have to be metered out mid project.

Most system vendors provide a generic version. In choosing such a system, many a time the users' requirements are bent to comply with the system specifications to save time and money. Whenever changes are needed to suit the enterprise's special needs, reasonable vendors are willing to carry out customizations with minimal or no additional charges. They feel that the good will generated with the users is more important over money. These customizations also help to add value to their future product releases.

All in all, careful planning with a well suited team is crucial to seeing a glimpse of successful project implementation.

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