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The following article was published in our article directory on August 15, 2012.
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Successful ERP Implementation Criteria

Article Category: Business

Author Name: Alex Taylor

Implementation for a new ERP software system is a major decision for any business. You need to be confident that your ERP provider has the specialist knowledge to complete a seamless implementation project, with a robust follow up phase. We determine the key steps to avoid the main pitfalls with implementing a new ERP system and focus on the requirements for success.

During this article we aim to determine essential steps SME's can take to ensure the effective implementation of a brand new ERP system.

Quite often an SME elects to implement ERP software to drive price efficiencies.

When the decision to implement ERP is down to financial reasons, it is therefore crucial that the implementation task is executed in line with the set budget. There are a number of areas to take into consideration ensuring successful project management.

Initially an SME should ensure they select correct ERP software that best meets their business needs. The implementation period of integrating a new ERP system means that there is a cost in both financial terms and in terms of any timeframes. Therefore the upfront selection of an ERP system and a competent provider that will look after it is crucial.

Transition will be necessary within the business and as such needs to be thought about carefully in advance. Some internal restructuring may be required, along with all the relevant training. Effective preparation by a competent team of consultants will enable a smooth transition into the new system.

A robust implementation plan will centre on:
1 / Generating a clear-cut roadmap to identify the precise change requirements, timelines and actions involved
2 / Management of all connected parties to ensure total buy-in to the project and the businesses capability to adapt to the required changes

It is critical that the primary members with an organization support the project and/or any needs for restructuring. Some staff will be pleased to support the opportunities a new system provides, and others who will be fearful of change. In order to ensure that there is no threatening of the project due to uncertainly or opposition, there needs to be a clear and efficient training program in place to re-train for the new system conditions.

Senior managers can facilitate this process by showing a positive approach to the changes, backing it totally with allocation of budget, useful resources and time as requested.

A phased approach to the ERP implementation will enable precisely defined targets to be shared and set across the business. Key stakeholders can then ensure that each step is planned for and delivered within the set timescales.

There are many causes that an ERP implementation venture go can wrong, however effective planning and agreed steps will reduce the threat.

Failing to implement successfully is traditionally due to:
1. ROI not being accomplished
2. Project not delivered within recognized timescale
3. Budget exceeded by a substantial margin
4. Adverse impact on business performances throughout the roll-out
5. Loss of production with considerable effect on customer service

The task of the ERP vendor should be to provide a full consultancy service prior to any implementation project. It is essential that they fully understand their customer's business in detail and are able to plainly map the implementation phase to match the customer requirement and hand over the project within sensible timescales.

While each project should be customised to deliver against each SME's specific requirements, there are crucial criteria that will run all the way through each project. These important areas are project planning to budget and timelines, allocated task owners (customer & vendor) and colleague assistance throughout the business.

Focusing on these requirements will provide a successful ERP implementation project. The choice to introduce a new ERP system should be one of the greatest economic decisions you make for your company. Therefore selecting the correct ERP system and well-qualified, capable ERP vendor is critical to managing a smooth and highly effective ERP implementation project.

Keywords: ERP Software Implementation, ERP Software, ERP Implementation Project, M1 Systems

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