Working in all corners of the ERP and business software industry for more than 25 years, we’ve seen a lot of mistakes made, and a lot of successors crowned. Approximately 70% of large organizational changes fail, and it was once said that the only source of knowledge is experience; so with that in mind, we think we can share a thing or two on how to go about producing the best possible ERP implementation for you and your business that will hopefully reap benefits for years to come.
1) Functionality – This is probably the most obvious, and being so obvious it’s probably one that is taken for granted. You need to know your business inside out; what processes are time consuming? What processes are critical? What are the key pains that people face day in and day out? You should question every aspect of your business and its processes in order to understand what you want your shiny new, all-encompassing ERP system to do for you.
Likewise, consider whether the solution is easy for your employees to pick up and use? Resistance to change is a major factor in project failure and you first need to win over those that will be using the new system before ever embarking on change.
Is the software vendor a reliable one? Sometimes people can get so caught up in the sales process that they neglect to consider what will happen in 10 years’ time – be careful to avoid software that doesn’t have a strong track record, a long warranty, and a clear plan of future development.
2) Objectives – This brings us neatly onto our second point: understand your core objectives. Everybody wants to cut costs, to increase profits and beat the competition, but what really matters to making your business a success? An ERP solution isn’t a magic wand that will instantaneously bring prosperity to your business, but it can point you in the right direction. Understanding what you want out of your investment will also give you a good measure for success.
Be clear from the start about what functionality is needed, and make sure your chosen implementation partner is fully aware and thinking on the same page. The biggest mistakes are made when there is a lack of communication. Our prescription for a successful implementation? Communication, communication and more communication. More often than not, problems occur during implementation because of unrealistic or poorly communicated objectives. You understand your business, and the partner understands the software, so systematically discussing objectives should provide you with an insight of what to expect, and when to expect it.
Are your objectives Long term or short term? An ERP implementation should always be taken with a long term view, in our opinion. We have seen a lot of unnecessary mistakes made where people have attempted to cut corners in the hope of shaving a few pennies off the cost, who then ultimately suffer and lose out in the long run. Get it right the first time and your investment will pay back for years to come. Mess it up and you’ll find your business on life support.
3) Flexibility – We see this word thrown around a lot at the moment, but your business is only as flexible as the people and tools it employs. A rigid, cemented system with no ‘wiggle’ room will stall your business. Times are always changing, and your software needs to be flexible enough to be adapted (either internally or externally) and developed, improved and expanded as your business requires. For example: Is the ERP solution mobile, accessible on the move from anywhere? The use of smart phones and the increasing desire to access data and work on the move has exploded in recent years beyond what anyone could have predicted, and businesses need to adapt and implement the right systems to cater for this change.
4) The partner – A critical success factor often overlooked. A full return on your investment can never be achieved without best-in-class training and consultancy. The majority of ERP software is sold through partnership networks. Over the years, we’ve seen many companies get deep into the implementation process, only then to find that the partner they chose wasn’t as good as advertised and problems spiral out of control. Think of buying an ERP system as a 50:50 mix; 50% software and 50% partnership. Many software vendors accredit their partners, so be sure to check that your chosen supplier meets the best credentials. We also advise looking at their history – what experience do they have in your sector? Are they friendly, helpful and most important of all are they honest? Be wary of partners attempting to sell you features you don’t need, and look for those that want to build a long term working relationship instead.
5) Business fit – Like a jigsaw puzzle, each element of the implementation process and the ERP software that you choose should fit your business, your culture and the way you work. Strangely enough, each ERP vendor has its own characteristics and each software suite is tailored toward a particular market. Picking one that works with you is vital. Likewise, choose an ERP partner with a similar culture and values to your own, that you can get along with and develop a long term partnership with. If you go in to the process believing that you can go it alone, you more than likely won’t succeed.
If there’s one underlying theme here that we feel you need to take away from the discussion, it’s that you need to take a long term approach to an ERP implementation. Many mistakes and mishaps that happen either in the beginning, or later down the line, stem from a lack of vision and depth. Fight to save a buck today and you’ll be paying for it for years to come. Bare in mind that ERP implementations are a lengthy process, and even after the implementation is ‘completed’, there will still be more things that come out of the woodwork that you didn’t appreciate in the beginning. The partnership between your business and your ERP system is for the long haul. So belt up and enjoy the journey!
About the author:
Craig Such is the Director of Azzure IT, a Sheffield based provider of end-to-end IT solutions called Azzure IT
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