Key Factors for Success of ERP Implementations - Part 2
In the first part of the blog, we looked at 7 key factors that an implementing organization should consider before deciding to go ahead with its ERP implementation project.
http://infosysblogs.com/oracle/2008/10/key_factors_for_success_of_erp.html#more
In this blog, we will analyze 3 additional factors that are also vital for success.
1. Test with real data volumes: Standard ERP packaged suites are generic and can be tailored to fit the requirements of different types of industries/business processes. Since every organization has its unique way of running its business, some customizations are invariably required in every implementation as part of this tailoring process.
To ensure that there are no peformance/volume testing issues during testing these customizations in UAT, the data-set available in the development & system test instances should be as close to production as possible. This will also help the development team capture boundary conditions and most of the business scenarios during unit testing.
2. Education and User Training: End-user training is one of the most important factors for success of the implementation.
Unfortunately though, this is left as one of the last steps in the implementation process and is often done in a hurry. User training should be a phased process and should cover the following:
-Operational and technical aspects including process mapping and setups
-Case studies on implementation best practices
-Comparison of how processes in the new system are handled differently from those in the old system
-Limitations of the system (if any)
3. Provide adequate resources: Integration of business processes across departments using an ERP system requires concerted effort. The involvement of individuals with cross functional knowledge who can resolve integration issues is crucial. The top management should also provide the right mix of technical and project management resources for the entire duration of implementation.
Please share your opinions & experience on the factors listed above and on challenges that you would have faced with complex ERP implementations.
Comments
This post provides a good set of key success factors that are essential to the delivery of a large ERP programme.
In many cases such programmes are extremely complex, cover many business entities, are global in nature, promise many benefits to the business and are 'multi-year' programmes.
In these circumstances, it is essential to maintain momentum and ensure that the business and IS functions fully understand the commitments required.
The focal point for ensuring this is the definition of The Value that the programme will deliver. An understanding of how to measure that value, alignment with a set of KPI's and the rigorous approach to baselining and measuring those kpi's is critical.
Through the lifecycle of the ERP Programme, the Value KPI's will indicate if the programme is on track and point to any area that needs additional support if the KPI's indicate a deficiency.
Posted by: John Lawson, Senior Principal, Infosys Consulting | November 11, 2008 02:36 PM
Another important point to be considered if the project involves business transformation is:
Identification and measurement of business benefits.
Posted by: K N Harilal | November 25, 2008 12:30 PM
Samir,
It's a very well thought out article on managing key areas for ERP implementation.
There is one more area that I feel could be important is managing change. From change, I mean the change that users will feel from moving from existing / legacy applications to new ERP systems. Users are typically in comfort zone on working on legacy applications and sometimes do expect similar look and feel and functionality from ERP. Senior management committment from Client side and effective communications becomes very important in this.
Do let me know your views about it.
Posted by: Anoop Sharma | November 25, 2008 12:48 PM
For an organization to change to a new ERP, there has to be a sufficiently large business and economic benefit.
Taking the end user into confidence is very important. The IT manager and heads of business function should convey why the shift to a new ERP system is important - there will be no doubt an initial intertia, but gradually with continued commitment from the top management, it will come through.
Posted by: Samir Das | November 25, 2008 02:46 PM
Another area to focus while embarking on ERP roadmap is Business & Technology Architecture. It is critical to align architecture direction with business and technology objectives.
Architecture effectiveness results in reduced redundancy in operational assets, synergies among process capabilities, optimal product choices, and avoidance of obsolete technologies.
Posted by: Ankit Dangar | January 3, 2009 01:10 AM