This is the third part of article on Success factors of an ERP implementation. We are sure this series of articles will guide our readers make their ERP system work effectively and successfully.
Communicate and manage expectations at go-live: Many stakeholders in the organization expect the ERP to be an 'everything for everybody' solution. Even in the best-case scenario, this is rarely true. And inevitably, some functionality must often be re-scheduled into a post "go-live" phase. All of this combined could crate disillusionment with the new system. If the project teams are struggling to meet deadlines, they may have to make decisions on the functionality that needs to be delayed in order to meet the original "go-live" date and avoid delays. These decisions must be communicated and "sold" in the stakeholders to ensure expectations are effectively managed. The organization needs to know what will be in place at "go-live" and when they can expect the additional functionality.
Extend capabilities beyond the ERP foundation: As a backbone technology, ERP delivers more powerful benefits when companies do their utmost to build on that platform. In doing so, successful companies turn to a host of complementary applications that generate ROI, from advanced planning and scheduling to warehouse management to sales force automation. Successful companies also pay closer attention to the constant stream of innovative new solutions developed by today's software developers like CRM, SCM, BI, etc.
Ensure the project has sufficient budget: What project teams feel they have enough money budgeted for their projects? The perception of not enough funds is likely to be even greater in a project with the complexity of an ERP. Careful planning during the budgeting process helps project teams make better decision on timing and allocation of resources. If budgets are not sufficient to support the deadlines, project resources find themselves working extensive overtime and under constant pressure. Ultimately, morale disintegrates along with the quality of work. If counter measures are not implemented the image of the entire. ERP system could suffer not only during implementation, but also long after go-live.
Encourage functional ownership of the project: Doing project work is a way of life for most IT departments, while functional departments typically have little or no experience with projects the size of ERP implementations. So, many organizations choose to let IT lead the ERP implementation. Rarely is this decision successful. In the long term, the functional departments with own the ERP. Hence, they must establish the rules that govern system functionality; learn how the system will handle business processes within their departments and be able to obtain information by on-line inquiry or by creating their own reporting. This ownership should be in place at the start of the implementation project.
Develop dependency-driven project schedules that can be tracked and managed to provide early warnings and help avoid crises: Successful ERP project implementation have well planned project schedules. These schedules are not built from a desired end date. Instead, they are built with a realistic view of the amount of time needed for the various tasks. These tasks are lined with clear dependencies - what must happen before a task can begin. With a schedule, you can track and manage your progress throughout the project. Most importantly, a well-designed project schedule can provide early warnings of problems.
Implement pre-project readiness assessment and overall project planning: Most organizations have never been involved in a project as complex and cross-functional as an ERP implementation. Additionally, an ERP project requires near full-time participation. A readiness assessment conducted prior to the project kick-off can help identify areas of strength and potential problem areas in need of improvement. This information is extremely helpful when planning the project budget and the project tasks.
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