The document discusses key success factors for ERP implementation projects. It covers 5 factors: top management commitment, clear goal setting and budget planning, a good project team from both the client and vendor sides, effective change management, and business process re-engineering. For each factor, it provides details on what they entail and why they are important for a successful ERP rollout. It emphasizes the importance of support from top leadership, establishing clear objectives and budget, assembling a qualified project team, managing organizational change, and aligning business processes with the new ERP system.
8. Committing the planned resources available for the ERP project is one of the ways to show the top management support & commitment, which would help the ERP project Implementation to be successful.
9. Delegating critical ERP implementation tasks to the lower management levels (who neither have competency nor authority) often results in
21. Organizations should understand that there are no magic acts in ERP software to achieve the set goals like press a button to reduce / increase the inventory or a task to run.
22. ERP Project Road map has to be framed to meet the Present & Future business objectives of the organization
23. ERP Goals are applicable for the various levels of the organization like Management, Business & IT. These goals would be Strategic, Operational & Tactical.
24. Few key ERP goals are: Centralized Data & Integrated Systems; Standardized Business Processes; Integrate & Streamline Operations; Increase Revenue; Customer Satisfaction; Reduce Cost by Improved Efficiency; Increase Employee Productivity; Collaborate well across Supply Chain; Manage Inventory well; Material Requirement Planning
25. Effort is involved to achieve the above goals, in determining how the ERP can solve the problems that allow organization to achieve these specific goals.5
26.
27. The primary reason is that all the costs associated with ERP are not identified during the budgeting phase of the ERP Project
28. Many organizations hurry the ERP evaluation phase, due to difficulty in coordinating their employees & don't clearly draft the requirements / project budget and this lead to ERP project cost over runs.
29. The high level ERP project budget plan should comprise of (among other things):
30. Initial Budget (License & Services) for the Procurement & Recurring Budget (License & Services) for the Maintenance & Support of
31. Resource – Resources involved between the client & vendor teams for the ERP Project (Implementation / Customization / Training)
32. Software – Primary ERP software, related software (like Business Productivity Software, OS, DB, Add-on’s)
40. Organization should realize that having these best people on the project is an important investment for the future organization growth through a successful ERP Implementation.
41. These people would need to spend most of their time for the ERP implementation till the project completion.
42. Organization need to delegate some of their work load to other employees or temporary / contract employees to pick up the slack.7
49. The Steering Committee: Strategic-level responsibility for the project plan review & approval, track project progress, take critical decisions.
50. The Core Team: Responsible for managing the implementation project.
51. Functional Teams: Ownership for implementation of the business process changes in their corresponding functional departments.8
52.
53. Some people would embrace the challenges & opportunities due to change and they would help the ERP project move forward. Others would fear the uncertainties associated with change and may resist the ERP project.
54. More than 50% of organizations, come across change management, during a new ERP roll out. Most of these organizations assess their change management ability as poor.
61. Those who object to short-term business interruptions caused by the changes, notwithstanding the long-term benefits.
62. Those who object as they have performed the same manual tasks for decades and are afraid of or don’t want to learn new processes.
63. Those who object as their job functions would change as a result of process re-engineering & automation.
64. Those who object to give their top performers to the ERP project because their non-availability would have a negative impact on their departmental performance.10
65.
66. Good communication is key to understand that the changes, though difficult, add greater value in the long run.
67. Open discussion on process changes/improvements will increase the company health, can allow employees to see that their own position be more secure with more growth
68. With more training, the users will be confident on their abilities to manage ERP, take ownership & become valuable contributors to the ERP project success.
69. Some proactive organizations first bring in a business process consultant, to assess the current practices & make recommendations for ways to ease into the changes, before starting off the ERP project initiative.11
70.
71. Today, ERPs are granular, so we can immediately implement the critical business functionality to meet the most pressing needs, and then address the other less critical needs (wish list) in priority order.
72. This approach would give more time to master the ERP & can reduce the information overload, which overwhelm the users, when forced to learn new processes & flows of the ERP.
73. Starting the implementation of the core functionality necessary to replace what was provided by existing systems. Once the organization is comfortable in this new environ, the additional functionalities for process improvements & new business capabilities can be implemented.
74. Focus on business processes & requirements is key than looking at the technical capabilities of a particular ERP. Once these needs are defined, we can choose the ERP that fits the unique business needs & implement it in a way that require less (if not, nil) customization.12
77. Re-engineer business processes before implementing ERP and customize ERP completely to conform to the re-engineered business process
78. Re-engineer business processes before implementing ERP & implement ERP with minimal customization to conform to the re-engineered business process but without losing the best practices suggested by the ERP
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services