ERP Implementation

ERP systems implementation considerations (Part 1)

An ERP systems implementation is a very complex, labor intensive and costly project. There are many facets that need to be taken into consideration when a company decides to implement an ERP system.  ERP systems offer many benefits to a company, but these large scale software implementations offer unique challenges that may not be of a concern in other IT projects. ERP systems implementations can take anywhere from 6 months to twenty four months, depending on many factors. After deciding on moving forward with the software implementation, a company has many items to consider.

One of the first steps for the company to perform is to gather requirements.  All steps are important, but understanding the business requirements and how the ERP system will benefit the business is critical to the success of the project. This portion is very complex and tedious, because ERP systems touch all facets of the business including the following: financials, supply chain, materials management, HR, and many others. All business owners must be actively involved throughout the project to advise the project manager of their department’s requirements. The business owner will also have to involve his or her direct reports to help with the documentation of business processes. Extra effort is required from a large number of employees for the duration of the project.

There are few other projects that rely so heavily on such a large portion of the employee population for its success. Each business process must be documented thoroughly to ensure that the ERP system can perform the function and is then configured properly. Having to do this documentation on top of their regular duties can be extremely frustrating for employees. Most users are resistant to change and in the case of a new ERP systems implementation, users will have to help drive the change.

A project of such magnitude must have full buy-in from the business owners, as well as the end users. If a department’s leader does not fully believe in the project, it will be difficult for his employees to believe in the project. If, for example, the entire HR department is not fully on board and prepared to provide human capital resources to the project, the HR component implementation has a higher chance of failure than the other areas. Considering that there are so many different components to an ERP systems implementation, it is not uncommon for some business areas to have difficulty meeting the project’s commitments.

There are many steps involved in an ERP systems implementation. Gathering requirements is one of the first and one of the most important.

Written by :

Amy Cruz