What Now! Part 4

The True Cost of ERP: Implementation

 The cost of a complete, end to end ERP implementation project is very high It is critical for an organization to make the project a success and start deriving benefits out of it as fast as possible. But what is it that makes an ERP implementation project successful?

 There are a series of common factors:

-A well-defined project organization structure that details the project planning, execution, and monitoring mechanism

-An attitude which stresses business transformation instead of process automation

-An approach to implementation that brings about the proper integration of people, process, and technology through effective management of the change process, specifically the expectation and the result.

 What we are saying here is you must define and plan the process in coordination with both the vendor and your organization. You should have an internal team that works with the vendor’s team to layout a step by step plan with timelines and milestones clearly defined and monitored. The tasks associated with implementation and start-up should be distributed to those who can meet the timelines in the most effective and efficient manner. If you have chosen to customize right away those customizations need to be analyzed and simulated and scored according to the goals you established in your search.

 If you organization has ever added a new product line or a production line, you know how disruptive that change can be. But those changes only affect the employees in direct contact with the new product or the production line. The implementation of any Erp system will cross all levels of you organization and affect most of your employees daily routines. This makes the implementation of an erp system the biggest change management project you organization will embark upon. Therefore your internal implementation team must treat it as such and be proactive in its promotion to your employees. The benefits and long term goals need to shared and reiterated often with your employees so that the long term ROI can be achieved. It is our advice that the internal implementation team consists of not only C- level managers but managers from all levels as well as non managerial staff, so that input and buy in from across your organization can be achieved.