What are the factors in the ERP for success in your business? One of the most common mistakes in a management software (ERP) implementation is to think that organizations are fully prepared for it. Organizations need to understand the key factors for the success of implementing so that can lead to the success of the project. In addition, they must know how to make the right decisions to strengthen their processes.
What are the factors in the ERP for success in your business? The success of the implementation project must include several factors. For example, the scope of the objectives for a determined period, not exceeding the budget and with an acceptable return on investment (ROI).
Following a correct methodology, a high probability of success is ensured in each of the projects carried out. What are the factors in the ERP for success in your business? The main success factors in the implementation are:
- Correct definition and start of the project.
- Management commitment.
- Project scope
- The project team.
- Change management, communication and training.
- Correct definition of customizations.
- Project closure
First, the correct definition and start of the project
In this phase, all the necessary information about the project must be perfectly defined and communicated to its stakeholders.
It’s recommended to:
- Prepare and review the business strategy to see if the project suits the company.
- Check the company’s IT strategy and verify that the project adapts to the entire IT policy.
- Do the scope and objectives to be met by the new one. As the modules to be implemented, processes to be defined and completed and everything else that could be required.
- Prepare and inform the entire organization of the changes that will occur with the new one, in order to involve all staff in the success of the project. Change management techniques, informational meetings, impression collection, and user opinions and everything necessary for the appropriate implementation.
Second of the factors in the ERP for success in your business, Management commitment
Factors for success in your business and implementation of the new will affect the way a company operates by updating business processes and changing the system.
Senior managers and middle-level managers must participate in the project from its inception until its completion.
This gives the project adequate visibility throughout the organization and shows staff, in general, the importance of the project.
It’s recommended to:
- Involve a steering committee in the project, creating a problem-solving structure during the project cycle. This participation will help to maintain support for the project and keep them informed about its progress.
Third, Define the scope of the project and the team
The new ERP may not meet all the needs of the organization. Developing processes and understanding their components and how they will fit with other systems and tools is basic. Therefore, it’s necessary to define the scope of the project from a knowledge position, detailing what the project is going to include and what not.
The project team must consist of full-time staff, which includes a project manager and others representing the core areas of the company. If an external consultancy is used, the project team must have a good and consistent working relationship with the consultants. In addition, identify a set of resources from the different areas of the company to provide experience in important and specific issues.
- Use methodologies and tools for project implementation.
- Strengthen the team to make decisions.
- The project team must be in the same place where the project is executed, as this helps communication.
- Identify experts from different areas of the organization for consultations.
- The project team must have a good working relationship with the consultants.
Fourth, Change management strategies, communication and training
Factors in the ERP for success in your business, the project will not only lead to changes in the systems, but also in processes and organizational changes. A change in management team will be needed for the organization to properly address the impact of the changes. The size of the team will vary depending on the size of the project and the amount of changes. Typically, software vendors or consultants will help the organization’s employees manage the changes.
- Create communication mechanisms, such as a web page, newsletters, roadshows, informational lunches, etc.
- Develop good communication between the project team and the organization as a whole.
- Key users must be involved with the project and its progress, as this will help to accept the changes.
- Create a business model that shows the changes in the processes and the functionality of the system, as well as the benefits it brings to the changes.
- Train users both during the project execution stage and after closing.
Fifth of the factors in the ERP for success in your business, have the correct definition of the customizations
Most ERPs are built with standard operating processes of a company. An organization must maintain strict control over customizations, as it can decrease the effectiveness of the system and be detrimental to future updates. These modifications can lead to an increase in the scope and budget of the project, therefore they must be defined and justified very well.
It’s recommended to:
Study other facilities in similar companies and see what customizations were adopted.
- Perform a priority analysis of customizations.
- Set clear expectations about the company’s position in relation to customizations, such as cost and benefit.
- Create an analysis process for each customization.
- Be prepared to adapt these modifications to the new versions.
Sixth of the factors in the ERP for success in your business, Define the budget and close the project
Factors in the ERP for success in your business, organizations must create a realistic budget to include all implementation costs, such as software, hardware, and personnel resources. Most organizations expect a return on investment (ROI) from a project, which is logical and should be calculated. A realistic budget must be made.
Making a good closing of the project is as important as starting the project. It must be checked that the scope has been achieved, that the requirements have been implemented and obtain the validation of users.
It’s recommended to:
- Create a good estimate of implementation costs and maintain strict cost control.
- Do not reduce costs in change management, training and project management.
- Communicate clearly when the new system will start up and when the old system will shut down.
- Prepare the transfer of project implementation functions to support from the point of view of the partner.
- Audit each of the processes validating that they work as planned.
- The main success factors in the implementation
Now that you know the main success factors in the implementation, you can properly implement new software in your business. This will help you improve your processes and increase your earnings through efficient management. In Innatos Software, we have the perfect software for your business. Contact us today for more information.