Implementing an ERP system is more than just setting up new software – it is about transforming your entire business process to make your organisation more efficient and effective. With 70 percent of digital transformation projects failing due to a lack of process focus, it is clear that success lies in the details.
Having worked on ERP implementations from both sides as an in-house business IT manager and now for a consultancy company, I have seen first-hand what sets successful businesses apart in their ERP implementations.
Let’s break it down into five key steps:
1) Keep key stakeholders informed throughout the process
Successful businesses know that communication is key. They get creative with how they keep everyone in the loop. Some of the common strategies used are:
- Appoint an internal Project Champion: This person leads and advocates for the project. Think of them as your change management guru.
- Secure Executive support: Having backing from the top ensures the project gets the attention and resources it needs.
- Provide support and training: Comprehensive training minimises resistance and prepares teams for the new system.
2) Recognise that full-scale ERP implementation requires extensive planning
Installing an ERP system is a lot more complex than downloading XERO or MYOB. It requires serious planning and a clear set of requirements. Here is what I see many successful businesses do:
- Choose the right ERP system and partner: They know that the right fit is crucial. They don’t just pick any system; they do their homework.
- Due diligence: They research thoroughly to shortlist potential implementation partners, then engage them directly to understand their processes and find the best fit for their business.
3) Understand their data
Having clean and accurate data is crucial for an ERP system to function properly. Successful businesses:
- Know their data: They understand what data they have, where it is stored, and how it is used.
- Maintain good data governance: They allocate resources for managing their data, ensuring it isaccurate and ready for the new system.
4) Stay flexible and agile
Change can be tough, but successful businesses foster a culture of flexibility:
- Open to new ways of operating: They understand that being flexible means adapting to the system instead of changing it. Using a standard system makes support and upgrades easier. A standard system is simpler to maintain and support, and upgrades are more straightforward.
- Promote flexibility: Within their teams, they encourage embracing new operating methods and staying agile. While there may be edge cases where the system needs to be customised, this should be a last resort. Prioritising adaptation over customisation ensures long-term efficiency and ease of management.
5) Keep the implementation simple
The journey doesn’t end once the ERP system is live. Successful businesses understand that continuous improvement is vital:
- Start simple: The first phase leading to the go-live should prioritise simplicity and use standard system features as much as possible. This ensures a smooth transition and helps users become accustomed to the new system without being overwhelmed.
- Adapt to changing requirements: As the business grows and changes, so do its system needs. Once users are comfortable with the basics, more complexity can be introduced gradually. Continuous optimisation and evolution ensure the system stays aligned with business objectives.
- Simplicity is key: Even as new features and complexities are added, focusing on simplicity ensures the system remains efficient and effective. Keeping processes straightforward.
This structure highlights the importance of a simple initial phase, followed by gradual introduction of more advanced features, ensuring a balanced approach to ERP implementation and optimisation.
Key takeaways:
To wrap it all up, here are the main points to remember for a successful ERP implementation:
- Plan carefully and clearly define your needs by laying the groundwork for success with detailed planning.
- Actively engage stakeholders by keeping everyone informed and involved, especially your Project Champion.
- Get your data in order – remember, garbage in, garbage out. Clean, accurate data is essential.
- Lean on your implementation partner’s experience by utilising their expertise to guide you through the process.
- Stay flexible and agile to be ready to adapt to new ways of operating.
- Focus on change management and training to ensure your team is prepared and on board with the new system.
- Keep it simple as complexity can lead to confusion. Simplicity is your friend.
Implementing an ERP system is a significant step towards making your organisation more efficient and effective, and supporting business growth. By focusing on these key areas, you can ensure a smooth and successful transition.
Take control, choose your implementation partner wisely, and plan carefully. Here’s to a successful ERP journey and the transformative impact it will bring to your business.
Happy implementing!