May 8, 2010

How to Implement ERP Successfully and Avoid Costly Failures

Enterprise resource planning software (ERP) can either make or break your company, depending on how well you implement it. ERP programs such as PeopleSoft or Microsoft Dynamics AX or Epicor are meant to facilitate communication throughout every rung of your organization. This can be a good thing or a bad thing. Learn how to successfully implement enterprise resource planning systems.

Step 1
Evaluate your organization as to whether or not its operation and workflow are compatable with ERP systems as a whole. Not all companies are. Especially tricky are those businesses in which a large number of departments must function independently. Forcing wildly divergent sectors to conform to one unified software system can be asking for trouble. Don't assume, on the other hand, that a fragmented organization can't be unified into one electronic system, just because your staff tells you so.

Step 2
Choose ERP software that's highly customizable. On the other hand, don't assume any easily-configured ERP system should be used in your organization. The more you have to customize, the more troublesome upgrades can be.

Step 3
Map your business processes in detail. ERP failures happen because those doing the planning don't actually know what the workflows are and what happens in the organization. ERP successes happen when the software is customized to fit a company's processes.

Step 4
Implement new security measures along with your ERP. Enterprise resource software increases security risk as departments now communicate with those they were formerly isolated from, data-wise. It's not uncommon for a failure in implementation to occur as a result of the planning committee not realizing they need to properly protect their data in a new way.

Step 5
Engage staff in the system changes. Don't just drop the ERP program on them like a bomb--give them warning, let them know why you're implementing it, and make sure they're willing to use the software successfully.

1 comment:

  1. The ABCD of our Implementation approach


    Business requirementsare consolidated keeping a future growth /expansion path in mind. Change requests are considered carefully and collectively before being executed. Associated risks, implications on a project timeline, impact on the upgrade path and costs are evaluated and communicated as part of the recommendation.Triad works transparently in identifying the best possible solution for a customer’s needs ensuring a meaningful alignment of customer’s visionwith the project deliverables.
    Business understanding

    Triad’s reputationhas been built by its consultants who are the brand ambassadors bringing to the table rich consulting experience and customer facing skills. The Lead Consultants are all Sage certifiedwith 6 to 12 years of relevant experience and understanding of domains like Trading, Distribution & Logistics, Manufacturing, Projects, Property Development and Leasing, Retail and IT Services.
    Consultative Approach

    Business applications are meant to solve business problems. In line with this vision Triad consultants recommend a suitable Customer Chart of accounts for the ERP or Segmentation in CRMto facilitate accurate MIS reports.We reconsider inventory segments and codification to support efficient tracking and reporting and if required give our independent recommendations, We suggest controls in processes surrounding the ERP/CRM implementation to facilitate accurate data collection or aggregation and without tying down the salesmen to their desks.

    Documentation is a key element of the project communication plan. Clear comprehensive documentation can significantly de-risk a project. As part of the project implementation Triad provides

    MS Project Plan with deliverables and milestones that can be tracked
    Training power-points for ongoing training
    System Specification manual for your technical IT team