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Guidelines for ERP Implementation

ERP is different from other IT systems in that its implementation is not restricted to a single functional domain. In order to take full advantage of the benefits of the ERP system, organizations need to follow the guidelines given below:

Define corporate needs and culture

In order to implement an ERP system successfully, a complete overhaul of the business organization is needed. Organizations should assess their readiness for change and the possibility of implementing change in the organization. The level of difficulty in bringing about change depends on the amount of change involved. Project leaders should assess the level of difficulty they are likely to face. The top management should provide complete support for the implementation of the ERP package. Implementing an ERP system involves the redefinition of the roles of different functional departments, and the authority and responsibility of individuals throughout the organization.

Complete business process change

The organization should be aware of the required changes in business processes, and skills and attitude for ERP implementation. It may have the willingness to adopt changes but may not be able to assess the implications of the changes. Therefore, the organization should undergo a brief business process redesign exercise before the actual implementation. The redesigning exercise should be carried out on the basis of the structure of the ERP package, so that there is no mismatch between the required functionalities and the functionalities provided by the package.

Communicate across the organization

Communication allows different entities involved in or affected by ERP implementation to be aware of its effects on their jobs. Proper communication optimizes the implementation process, as the employees are aware of what is required of them. Besides, feedback provides the management with the information needed to allay the concerns of the employees. Communication should not overstate or understate the functionalities of the system. Overstating the functionalities would raise employees' expectations unrealistically, while understating them may leave employees unprepared for the changes required for ERP implementation.

Provide strong leadership

Strong leadership is an important success factor in implementing an ERP system. The difference between an informal support and active leadership can be the difference between success and failure. Therefore, the members of the steering committee members should be able to understand the business redesign and integration. Though these may be complicated processes, the right modeling tools can help them make simpler to follow. The steering team should be trained in process mapping and reengineering methodology and it should be fully involved in the process redesign so that it can guide the team members (implementation team) properly.

Select a balanced team

The size and complexity of ERP implementation and maintenance necessitates a balanced team of professionals. In general, the ERP team consists of personnel from IT, finance, marketing, sales, and production. Most companies hire external ERP consultants who provide information about the operational aspects of the ERP system and assist the internal team.  

Select a good method of implementation

As the implementation of an ERP package involves the participation of all the departments, a proper sequence of steps should be identified to define the implementation process. Project leaders should set the milestones to be achieved in the various phases of the implementation and review progress continuously against the milestones. They should define clearly the scope of the project and develop the work breakdown structure (WBS), and estimate the time required to complete each activity identified in the WBS. This will help them reach a realistic project plan. They need to ensure that there is no compromise with the quality of the system.

Organization-wide training

ERP is a complex and organization-wide system that requires some amount of training so that full advantage of the capabilities of the system can be taken. The steering team should be trained in process analysis and redesign. The staff in the IT department should be made aware of the package architecture, design and configuration. Functional mangers should learn how the system performs and how it can be useful in the decision-making process. The training varies across different levels, and is based on the requirements of the persons using the system.

Due consideration of these issues can make ERP implementation problem-free. 

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