Tougher competition in the marketplace is generating the need to better optimize
resources, improve profitability and keep customers satisfied. Companies are
increasingly implementing Enterprise Resource Planning (ERP) software solutions to
improve operations and provide faster customer response.
Choosing an ERP solution that meets your specific business requirements will enable you
to have a smoother implementation. If the software package is written for your industry,
you won’t have to custom design a solution. Customized solutions are time consuming to
implement and add unnecessary cost. One of the top reasons ERP implementations fail is
because the software doesn’t meet basic industry specific business requirements.
However; purchasing an ERP application is only half the battle. A well designed
implementation plan is the key to success.
Like a civil engineering endeavor or sizable construction project, implementing an enterprise-wide application like an Enterprise Resource Planning (ERP) system to help run your business is a costly and complex process. And just as would be the case with any significant undertaking, success is not a given. A certain amount of planning, discipline and wisdom are required to complete implementation in a timely manner and to make sure that the new enterprise system put into place meets the requirements of your business.
Implementation of ERP software, such as Microsoft Dynamics GP, is a major step in moving your business toward revenue growth, increased productivity, better efficiency, and effective cost management. It is not an overnight process, but with proper implementation, your business can achieve its goals and experience unparalleled success.
An IFS white paper entitled “Six Steps to ERP Implementation Success” by Michael Hawkworth, provides insight into several ways you can make the implementation of ERP software occur more smoothly. It recommends the following:
1. Define success. According to the white paper, defining success requires more work than it sounds like it would. Successful executives know this well. In some cases, defining success is all they do. These people are visionaries, and having a vision will go a long way in making sure you meet the actual goals of your ERP implementation.
2 . Set priorities. It helps to know what it is you hope to accomplish. Having an ERP system because it seems like the right thing to do is not enough. You need to prioritize your problems and goals.
3 . Avoid modifications. While some vendors may give you the option to request changes to their source code (for a price), this will only lead you into an endless cycle of troubles. You will end up paying more for technical support, more for training, and more for upgrades. Customizations are fine and often included in good ERP software, but code modification at the vendor level is a mistake you do not want to make.
4 . Prepare for change. You already know the change is coming. It is better to prepare early and plan well. When employees have been doing something a particular way for a very long time, it is difficult to convince them that something new, something that requires training, will be better. Take the time and effort to ease them into change.
5 . Gain executive support. When the top dogs have your back, you can achieve positive results. Keep them involved in the selection and implementation. They will be the ones who motivate the project team, provide necessary resources, and ultimately make important decisions.
6 . Budget dollars and people. Funds do not magically appear in business. Therefore, even if you have the money for ERP software licensing and maintenance in your budget, you must consider the other costs involved in implementation. Implementing any software requires people to handle the work. The committee or project team will have to dedicate time to planning and the actual implementation process. That is time they will not spend on their normal work, which means you may have to hire temporary workers.
Once you have a plan in place and have carefully considered how you will proceed, implementing your ERP software should be a breeze. It need not be a grueling process that makes everyone working with you hate you. And even if that does happen, preparation and planning can help you alleviate some of that animosity, once people in your organization see success come to fruition.
In Summary
• Set reasonable goals and objectives.
• Make project team members accountable for implementation.
• Test software across departments.
• Constantly evaluate to maximize the return on your investment.