- Enterprise resource planning (ERP) systems are complex. It is not an easy task for IT to address differing business unit requirements’ and effectively manage stakeholder expectations.
- ERP projects impact the entire organization. The disruption is felt before, during, and after implementation, as everyone struggles to maximize the benefits of the investment.
- Organizations often do not know where to start with an ERP project. They embark tactically on planning the start of the project, but ignore the strategic foundation that sets the ERP up for success.
- The outcome of the ERP project is completely dependent on the foundation established at the outset. Missteps early on can cost you time, financial resources, and careers.
Our Advice
Critical Insight
- At some point in the ERP project, you will be asked why you are doing it. Make sure you have a compelling case that is built on the strategic business objectives.
- If you fail to receive top management support, don’t proceed with an ERP project.
- An ERP should be a business-led initiative, yet IT is often given the ownership of the project without being armed with the resources and capabilities to execute on the project.
Impact and Result
- Build a clear operating model/business model to guide the strategy and decision-making process.
- Gain an overview of the organizational capacity to embark and execute on the ERP project – change impact, stakeholders, and level of involvement required.
- Have clear and measurable success metrics established at the outset of the project structuring.
- List critical success factors and relevant success metrics.
- Understand ERP stakeholders – where the stakeholders fit in the project and their involvement in the project.
- Identify risks and determine initial mitigation plans.
- Set clear organizational expectations from the ERP project – agree on guiding principles and table stakes, and prioritize process/functional areas.