Have you ever realized how many factors are behind "Enterprise Resource Planning"? Whether procurement, operating resources, finance and accounting, capital, materials management, marketing, production or personnel - the list is long. It quickly becomes clear how complex the introduction of ERP projects can be.
The financial outlay, production and delivery capability are particularly dangerous. However, the biggest hurdle usually turns out to be the acceptance of those involved in the project. To ensure that the introduction of your planned system does not turn into a horror scenario, you need suitable change management. In this article, we will first show you the typical causes of failure in ERP projects. We will then give you important suggestions and tips on how to successfully establish ERP systems in your company.
The causes of failed ERP systems
When the implementation of an ERP system fails, experience shows that the same reasons are always the culprits:
- Non-transparent goals
- Unclear responsibilities
- Requirements change too frequently during implementation
- Difficult communication between IT and the specialist departments
- Incompetence and inadequate mindset of those involved
8 tips for successful ERP implementations
It is important to us that the mistakes mentioned above do not happen to you and that you overcome the typical hurdles with flying colors. A very important key to this lies in change management. For this reason, we have compiled the following important tips for the introduction of ERP systems, with a focus on successful transformation processes.
Keep all stakeholders in mind
The introduction of a new ERP system often affects many core areas of a company. Whether production, IT or finance - a large number of employees from very different areas are usually involved. The merging of these processes makes the ERP implementation a very complex project. To gain an overview of the many stakeholders and establish successful stakeholder management, project managers should use a stakeholder matrix. They should also know all those involved very well and actively integrate them throughout the entire project.
Describe the interfaces
In addition to the project participants, it is extremely important to know all the interfaces of the networked systems very well. Detailed interface descriptions provide assistance. They should contain project-relevant factors such as objectives, sources, connections, timings and responsibilities.
Use established technology with standards
Why make it complicated when it can be simple? In many cases, standardized software is suitable for a new ERP system in order to avoid unnecessary costs. After all, the software provider has already put a lot of thought into it and carried out a series of tests to establish the platform on the market. No matter how smart an in-house solution should be, individual software and in-house developments almost always mean extra work. Setup, software testing and maintenance can take up a lot of time. Modified standard software usually means that it has to be individually updated for the customer every year. New customers in particular often underestimate the cost of customized solutions.
But are there exceptions? Yes, definitely! Self-configured ERP software always makes sense if you can use it to speed past your competitors in the fast lane. Especially in coronavirus times, when speed and flexibility are in demand, it can make sense to use a clever software solution to improve delivery times or respond even faster to customer inquiries, for example.
Use clouds
Clouds mean better data exchange and easier collaboration, especially among stakeholders. So don't be afraid to establish new cloud technologies! As clouds generally don't allow much customization anyway, you avoid the risk of over-engineering your new ERP systems right from the start.
Consider the 3 phases of change management
The following three phases are necessary to establish new ERP systems among employees:
- Preliminary phase = start of transformation management: analysis of existing structures and recording of technical interfaces, establishing project organization, creating a mindset, creating decision-making options and harmonizing processes
- Implementing the ERP system: providing the environment, communicating project goals, designing processes
- Go-live and empower stakeholders: Enablement of all participants with the help of meetings and training courses
The right mindset
Change management does not mean "getting on employees' nerves" with a change that they merely take note of and simply endure. The introduction of an ERP system should be a far-reaching transformation that everyone involved in the project is happy to live and help shape. It is crucial that they accept the new processes. For this to succeed, a motivated project team is required to lay the right foundations. In addition, you should always involve all affected key users and departments in the project and prepare them sufficiently.
Empower those involved - Enablement
You can strengthen the mindset by providing users of the new software with sufficient training. New team concepts and suitable communication measures also offer real opportunities to create transparency and empower stakeholders and project participants for implementation.
Depending on the target group and current project phase, you should support them by:
- ... communicate the objectives and provide information about the project.
- ... support all those involved with the help of training.
- ... enter into dialog with individuals affected and talk about personal effects.
The right timing
When it comes to communicating an ERP implementation, the earlier the better! Involve all users in the project planning as early as possible and bring them together around one table. Explain the background and communicate the added value of the upcoming transformation. The more proactive the transformation management is, the greater the employees' acceptance of the software will be. This will increase the commitment of those involved in the project and automatically boost productivity.
Do you need further tips? Passion4IT will be happy to provide you with advice and assistance on establishing new ERP systems.
