In classroom study what is the key to successful ERP implementation?

The introduction of Information Technology, especially enterprise systems such as enterprise resource planning (ERP) systems, is a common way of implementing organizational change today. Such enterprise system implementations frequently come with new software systems and business processes that substantially alter workflow and jobs.

While the annual investment of several millions of rupees in ERP systems is staggering, estimates indicate that there could be chances of failures in implemented systems and such failures have been observed even in highly successful organizations. Organizations that successfully implement ERP systems, including new software and business processes, have reported enormous benefits, such as greater efficiency and effectiveness at the individual employee and organizational levels.

One of the primary causes of failure is the inability of managers to effectively manage the change process. Managers frequently fail to consider the organizational environment and culture relying, instead, on success stories of some organizations that used a big-bang strategy, an implementation strategy in which all modules of an ERP system are implemented simultaneously and in a short period time, to manage their own change. The result can be catastrophic for firms, with consequences up to and including going out of business as a result of a failed ERP implementation.

Given this backdrop, it is important to teach diverse aspects of ERP implementations to make today's information systems and business management curricula relevant to organizational practice. Yet, the effective integration of ERP related knowledge into curricula continues to be a challenge with some suggesting that relevant knowledge should be imparted in a wide range of classes. Of the many areas related to ERP systems, the ability of students to understand that different strategies of ERP implementation may be necessary in different scenarios is an important one, especially for those who may go on to manage such implementations.

A "one-medicine-does-not-cure-all-ailments" argument goes well with when it comes to ERP implementation strategies. Yet, mistakes and failures continue. Sorely needed is a teaching approach that can open the eyes of managers, present and future, to the different strategies to ERP success, and when a particular strategy is appropriate. With a good teaching approach with minimum three cases of examples could help the student identify the areas where a failure is bound to happen and may rectify it. It is also a must that each student is assigned to read only one of the three cases, lessening the total workload, but the students understand the differences in approaches and successes of ERP implementations related to all three cases. 

1. An Emphasis on Project Management: Due to the complex nature of an ERP implementation, the team must be led by a person experienced in project management. A dedicated, experienced project manager can make the difference between success and failure. More than a part-time task master, the project manager provides leadership for accountability, transparency, and decisiveness. We advise our clients that the entire ERP implementation team should keep a focus on excellent project management techniques.
2. A Commitment to Apply the Appropriate Resources:  Manufacturing companies must apply significant internal and external resources for ERP implementation. From data migration to user training, from a phased pilot to “go live” deployment, the correct vendor, consultant and internal business user resources are critical. We see many companies underestimate the required resources especially during critical phases of the project. We advise our clients to never trivialize the scope and scale of an ERP implementation. Success follows when a company allocates the proper amount of time and resources.
3. Collaboration with IT:  As we noted earlier in the post, an ERP implementation affects the whole enterprise, including the extended supply chain. However, the IT team needs to be at the center of it all. The project team must build in collaboration, communication and coordination with the IT department.
4. A Focus on Change Management: An ERP implementation brings with it drastic change for the entire enterprise.  A previous post on ERP and change management noted that it’s important for the ERP implementation team to know how the work force will react to a new ERP system, how to gain consensus from all team members, and how sponsors can lead their people to success. The team sets the pace in implementing ERP for lasting business change within an organization.
5. A Focus on Education:  This point can’t be stressed enough. An ERP implementation is only be as good as an end-user’s ability to operate it. The team must design workshops and instruction to teach all business users how to utilize the system to its full potential. Our implementation experts often suggest short, targeted training sessions. This allows users the time to try what they have learned and to develop ideas for process modifications and system optimization.