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What are the crucial factors to be borne in mind for a successful ERP implementation?

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Question added by Nagarajan Venkatesh , Finance Head , Anchor Allied Factory
Date Posted: 2014/09/10
Wakeel Ahmed
by Wakeel Ahmed , Finance Manager , Lloyd & Co. (Emirates) Insurance Brokers LLC

 Implementation of ERP systems

Selecting and implementing a new ERP system, and the process changes that go with it, is unquestionably a complex undertaking. Regardless of the size and perceived resources, an ERP implementation is not  something that should be approached without a great deal of careful planning. 

Crucial Factors to Keep in Mind for a Successful ERP Implementation:

1)  The first phase of ERP Implementation i.e. planning 

      consists of further two steps

     1.1)  Pre-evaluation Screening

Once the industry has decided to go in for the ERP system, the search for the perfect package starts. But there are hundreds of ERP vendors- of all sizes and shapes – all claiming to have the solution that is ideal for industry

     1.2)  Package Evaluation

It is most important part of ERP implementation process in an industry as it decides the success or failure of ERP project. Since ERP systems involve hug investments, once a package is purchased, it is not an easy task to switch to another one

 

2)  The Design Phase consists of the following steps:

   2.1)   Gap Analysis

This is the process through which industries create a complete model of where they are now and where they want-to-be-headed. The model should be such that it anticipates and covers any functional gaps

   2.2)  Customization

In this step, the business processes are understood and mapped in such a way that the arrived-at solutions match up with the overall goals of the industry.

 

3) The Transition phase consists of the following steps

     3.1)  Re-engineering

Reengineering in the ERP field refers to the implementation model initially designed and used with much success by the major ERP consulting firms.

     3.2)  Training

This is the phase where the actual users of the system will be given training on how to use the system. It starts much before the system goes live. The employees who are going to use the new system are identified. Their current skills are noted and they are divided into the groups, based on the current skill levels. Each group is given training on the new system. The training is must for the end users as the success of ERP system is in the hands of end-users. End- user training is much more important and much more difficult than the implementation team training.

 

4). The Testing phase consists of

       4.1 )  Testing

In this step of ERP implementation the industries test the real case scenario. The system is config.d and now they must come up with extreme case scenarios-system overloads, multiple users logging on the same time on same query, users entering invalid data, hackers trying to access restricted areas and so on.

      4.2 )  Go-Live

This is the phase where ERP is made available in the entire organisation.

 

5)  Post Implementation Analysis

       5.1)   Once the implementation is over, the hired consultants will go. It is the time to reap the fruit of 

the implementation it is very important that the system has wide acceptance.

 

     5.2)  The system must be updated with the change in technology. The post implementation will need a 

different set of roles and skills than those with less integrated kind of systems

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