ERP has the power to change the entire organization's processes for making them more sophisticated, streamlined and adaptive. As soon as the ERP gets implemented, the organization needs to transform all business functions in order to align and integrate them with the ERP system. This transformation is not easy for anyone. It takes a lot of time and effort to set up the new system and get used to it.
In this blog, we have discussed the top 9 essential components that define the success of ERP implementation.
Lighthouse has provided ERP solutions for 1000+ clients worldwide. Therefore, it can be concluded that we have encountered lots of challenges and were able to make it. Through our experience and expertise in the field of technology, we were able to complete the projects successfully and supported our clients through and after the whole implementation process.
Before deciding on implementing the ERP system, first, make sure where you need it the most? Prior to beginning the implementation process, you must set up the targets and build a roadmap based on goals that you want to achieve through ERP system implementation. A roadmap helps in making records for required resources, setting up a timeline for implementation, selecting the right software and determining the budget cost that should be invested in the implementation project.
After defining the requirements, it's time to select the right software. It is crucial to choose a reliable partner with the right expertise and knowledge in this field. Having the right knowledge is critical for knowing the causes of disruptions and failures. If you are investing, you should make sure that it will be beneficial to the company.
ERP implementation is a big task which needs the participation of all the personnel within the organization. A great team and a great strategy is the fundamental need for carrying out an ERP implementation project. Both the buyer and vendor team should work in unison, understand each other's requirements and dedicate themselves to make the project successful. A good team consists of the most experienced and valued people in the organization including Executives, Team Leaders, Project managers, Cross-functional Team members, Change management individuals, Technical Consultants and also the contribution of all employees.
Behind every successful project, there is a commitment from all the people in the team. It requires commitment for every business project to run successfully. To execute the project successfully, the team should be committed towards the same goal, Participate fully in all the tasks, be interested in driving the project towards growth, have total support from project managers, leaders and sponsors and work in harmony.
Depending on the business type and features, selecting the appropriate implementation approach is important. The success of the entire project depends on this decision. There are 4 implementation approaches for deploying the software in the organization, viz. Big-Bang, Phased rollout, Parallel adoption, and Hybrid. The organization needs to select the best strategy to carry out the project successfully and make sure it benefits the entire organization and does not cause any disasters. This selection of the right approach is done based on some key features such as organization size, budget, risk tolerance and desired ROI.
Training the employees is essential for making them get adapted to the new system. ERP can only be used effectively when its users have in-depth knowledge about how it works. Also when users know how to use it, they don't stumble on figuring out what to do next and will utilize the system thoroughly. Utilizing the system will make the work effective and save time. Training also prepares the employees to operate the system confidently and independently.
Implementation of the new system brings significant changes in the business. Many times, organizations are unaware of the effects of implementing ERP in the business. As ERP transforms the entire organization's workflow pattern, many executives may find it difficult to adjust themselves to the new environment, new responsibilities and new job roles. This expertise gap could cause major disruptions in the progress of the project, foster employee dissatisfaction, increase the workload, and yes, lead to project failure. Many organizations take change management very lightly and don't like to invest time and resources in addressing the problems of employees. Change management facilitates in understanding opportunities and future scopes for ERP, knowing the employee and executives mindsets by carrying out assessments, will bridge the communication gaps, and support the entire organization in the transformation phase.
Now that all the processes are completed and executed, all the necessary measures have been taken and required training has been given. How could it be ensured that the system is successfully deployed, working adequately and producing good results? For that, executives and project managers need to record the performance of the system. Project leaders need to make certain that all the existing systems have been successfully integrated with the ERP system, and the users are comfortable with it and know how to make the best out of it. Performance recording also helps in figuring out possible bottlenecks, and identifying the future scopes and potential of the ERP system.
Even when the system has been successfully deployed, it still requires maintenance. It is vital for every organization to maintain their systems and keep them updated for streamlining all the business processes to stimulate the workflow, reducing risks of data loss and knowing all the causes of disruptions in advance. Through ERP system maintenance, organizations are able to figure out its capabilities, certain problems that are arising, ensure data security, scrutinize the business functions, review the systems performance, and readjust the systems after upgrading. It may be considered as a costly process, but skipping it would cost so much more.