Challenge Of Setting Up An ERP Software Implementation Team

Enterprise Resource Planning (ERP) systems have radically changed the way organizations work. Over time, sheer size and complexity of ERP Software Implementations makes managing these projects difficult. If not handled well the ERP implementation run into rough weather. There are numerous horror stories of ERP software implementation failures, which have inflicted great deal of pain on organizations. This pain can be in the form of implementation cost overruns, software that doesn’t support the business, or lack of employee acceptance.

Once an organization has taken the call of implementing an ERP Software, it must ensure that the entire organization, both horizontally and vertically, develops a new mind set and remains focused, geared and commitment to the cause of the ERP. Even in the so called vendor provided “turnkey” implementations, the organization cannot shrug off their responsibility.  Management must appreciate that though the vendor will need to be actively involved, but, the ERP implementation is essentially their baby.  And just the way the world’s best obstetrician cannot have your baby for you, a vendor cannot implement an organization’s ERP system.

Essentially there are two sides to ERP software implementation, people and technology. An ERP touches the entire organization and thus affects nearly every employee. It is also difficult envisage the technological portion of the ERP implementation because of the vast combination of hardware and software involved. Whether one module or multiple modules are being implemented, consistency and full integration across the components needs to be ensured. This, even for an experienced system architect, is an enormous effort. Thus client and vendor must collectively constitute an ERP software implementation team that is competent enough to address both these aspects.

ERP project management is the key to a successful ERP software implementation. The biggest challenge faced by the ERP consultant is that of having an effective and mature ERP software implementation team at its disposal. ERP consultant’s dream team is one that can handle both the people and the technology aspect of the implementation.

Another factor which is critical to a successful ERP software implementation is the implementation team. The team should represent the ERP user community and have the right mix of the best cross functional people in the organization. It should be a team that will maximize the value delivered by the ERP. The team should understand the business, the project goals and the organization’s history. The team should be capable of, and entrusted with, making critical decisions. The team should also include ERP knowledgeable personnel, these are typically consultant’s/vendor’s personnel that ensure that the system aligns to unmet needs during the implementation process.

An organization must clearly define the ERP software implementation “finish line”, or the scope of the ERP.  Best ERP implementations, if managed properly, easily reach 95% completion; but then can take forever to complete. Criteria must be set up to mark completion of the implementation.

Top management needs to make continuous contributions and commitments in order to make the ERP software implementation a success. A C-level executive (CFO, CIO, CEO) championing the organization’s ERP software implementation increases the success rate drastically. Inclusion of senior management also facilitates overcoming resistance to change at user level.  At the end of the day it is an enterprise wide project, and must be imbibed as such and not merely as “an IT project” or a “Finance project”.