Successful ERP Implementation Factors: People, Processes and Systems

Successful implementation of an ERP software system in any business requires careful planning and consideration. 

The people, systems and processes in place will ultimately determine the success of your project. ERP software goes beyond helping to improve the way you do things; it incorporates and delivers the latest technology to solve industry problems, improve business processes and empower employees to do more for your business.  

What is the key to successfully implementing an ERP system?

ERP Implementation Best Practices

Firstly, it goes without saying that your ERP implementation strategy needs to include:

• Clear goals and scope with specific KPIs that address your challenges and match your business strategy.
  
  
• A cross-department ERP project management team, to ensure all needs are met.
  
  
• Choosing the right ERP and the right partner.

In this blog, we look at how people, processes and systems are critical success factors for your ERP implementation plan.  

How To Achieve a Successful ERP Implementation

People

The decision-makers in charge of your business's ERP system are not always the everyday users. If the ERP system you choose to implement fails to meet the needs of your users across all areas of the business, the likelihood of them using the system to its full capability is low. This presents room for a wasted investment.

The users should be considered, or you may come up against resistance to using the system. Many are initially resistant to change, with some of your employees stuck in their ways, because if it works, why change it? This outlines the issue of educating your staff about how and why an ERP system can benefit not only your business but also how it helps support them in their job role. A huge part of this is good training, which your chosen partner can provide.

Involve your staff, let them see their views have been considered and keep those who will be using the software involved in the process. Getting your staff on side will help with successfully implementing ERP software - ultimately leading to improved processes and a more efficient workforce.  

Processes

Generally, processes within a business are the route by which things get done. Many organisations will not have reviewed their processes for a long time, because "it's the way it's always been done".

Implementing an ERP solution is a process transformation project. Putting your processes in the spotlight can identify weaknesses and vulnerabilities which may be costing you money. This provides scope for your ERP software solution - the issues identified will need addressing with the ERP software itself. 

Improving processes provides many intangible benefits, including improved time saving, reduction in errors and easier tasks, which can ultimately result in tangible benefits such as money saved. For example, you could get your product to market quicker and at a lower price because you've reduced the time from your processes. 

You need to clearly understand how your business works, so that an ERP can deliver intended benefits. Understanding your processes ensures the ERP system is aligned with either how your business operates or how it should operate. You should compare processes with the system capabilities.

ERP is highly configurable – your partner can set workflow rules, approval paths, user roles, and data structures, for example. To ensure success, having clear process definitions will lead to accurate configuration, speed up implementation time, and reduce the chance of project failures.

Why do ERP Implementations Fail?

Systems

Systems are the technology that you use. When was the last time your systems were reviewed? It's important to consider whether the technology you use supports the growing needs of your business. 

As technology advances, so do the capabilities of businesses in terms of bettering their offering to ensure they compete on a larger scale.

By successfully implementing an ERP system, businesses can take advantage of AI, machine learning, real-time data analytics, IoT devices and much more to solve common industry problems such as inventory management, demand forecasting, data visibility and customer service.

Within a modern ERP system, there can be thousands of functions. Whilst systems with long lists of functions may look impressive, it’s best practice to remember what you need, as many won’t be relevant. Your partner should be able to guide you on this matter.

Although cloud technology has become increasingly popular, is it the right option for you? Make sure you’ve carefully considered the cloud vs on-premise debate to make the best decision for your organisation.

Think about your business’s future, plans, goals and direction, and how you will achieve this. Consider the flexibility and scalability of any potential ERP software system. Ensure that your chosen partner is fully aware of and committed to your goals and will engage with you to deliver the project required and not what they believe you need.

Learn more about choosing the right ERP partner