"Empowering businesses to achieve the 'State of Readiness' for seamless ERP transformation. 🚀 Navigate the complexities of implementing new ERP solutions with our expert insights and strategic guidance. 💡 Unlock the potential of your enterprise with informed decisions and proactive preparedness. Join us on the journey to ERP success! ✨ #ERPImplementation #BusinessTransformation #StateOfReadiness"

1. We have come across numerous stories in the tech world relating to the failure of
software implementation, pointing to various reasons for the cause. It could be
any software applications like CRM, HRMS, or WMS that might not meet the
purpose or real value as they are supposed to and get away with it without
identifying the root cause of the failure.
Among those debacles, the most prominent one is the failure of ERP system
implementation. It is perfectly normal in the digital age that almost every
company uses ERP systems today and is constantly looking for digital
transformation initiatives and strategies. They are ready to implement innovative
operating models to achieve agility and relevancy, but the reality is different.
What commonly prevails among business owners and industrialists are having a
wrong perception of digital transformation.
Typically, they choose a technology and implement it. In the interim of these,
what they overlooked and failed to recognize is organizational readiness. In
addition, they have been experiencing many difficulties during and after the
phase of software system implementation.

2. These are mainly due to the client team’s expectations misaligned with the
project implementation initiatives. They aren’t on the same page and can’t
achieve consensus on their expectations. Each executive might have different
expectations from the new system that are completely off from the ground
reality. In some cases, they are likely overwhelmed and confused, which might
pave the way for escalation in the project cost and time of completion.
Companies are missing out on the phase of organizational readiness. They don’t
realize the need for organizational change management before diving into the
ERP implementation process.
Three facets estimate organizational readiness for successful digital
transformation - People, Process, and Technology.
All these facets should agree with the digital
transformation before they move on to ERP
implementation. Also, be sure all these pillars
are taken care of and devise organizational
change management strategies to minimize
disruption during the ERP system
implementation.
Organizational Readiness has six major components:

3. 1. Strategic and Executive Alignment: The first and foremost component of
organizational readiness is strategic and executive alignment. Usually, problems
will arise from the top management. This component defines how well the key
strategies and expectations of executives from the client side will align
throughout the digital transformation phase. It’s also significant that the client
team should forecast how much transformation this ERP project will entail for the
company.
We’ve created a checklist of each component for clients to make key strategic
decisions: Checklist:
 Examine and confirm whether your organization has clear expectations on
the outcome of business transformation.
 What objections are you likely to face while implementing changes to
business processes and models?
 Is the project posing financial and technical risks? Is the management
equipped to anticipate or cope with this?
 How does the existing compensation structure work? How might it affect the
political dynamics between various business units and functions?
2. Operational Readiness: Operational readiness can be compared to a physical
map of the organization that shows your current status as well as your
destination towards implementing a new ERP system. The first step in this process
is to write down the mental models of the team involved to see where each
person is heading towards the project. Building a common language makes it
much easier for everyone to understand the desired state and why the requested
operational changes are essential to the project's success. They should seek
answers to queries that capture the objective and vision of the project. You could
inquire about operational readiness like:
Checklist:
 Does the team involved in your project have the same mental models?

4.  What business process changes do we want to start deploying now – even
before we go live with new ERP software? How will the revised business
procedures be implemented?
 What are the critical business process decisions you must make to guide
the technical consultants and ERP system integrators in the proper
direction?
 Is it possible to re-engineer business processes without significantly
impacting the core operations?
3. Data Readiness: Data readiness is one element that is perpetually disregarded
when assessing organizational readiness. Data's general function in a system's
context is to move a linked piece of information from one stage to the next.
However, few people are aware of the relationship between data and ERP.
Insufficient data preparedness can cause over-engineering of processes,
resulting in change into bloated systems.
First off, a deep understanding of implementation is necessary when dealing with
data issues. The following are the inquiries you ought to make regarding data re-
engineering:
Checklist:
 How are the master data models now in use? Have you modified any of
your procedures as a result of data problems?
 Have you been experiencing multiple disconnected instances of master
data records in the existing system?
 Do you have data governance problems where the model doesn't seem to
follow any logical structure?
4. People Readiness: One of the most critical organizational readiness
components is people readiness, which calls for a thorough grasp of current
behaviors and how those may affect stakeholders' willingness to change
business models or processes. It’s important to address any organizational
impacts that were identified during the requirements-gathering phase.

5. The client should create an internal change team and initiate a change strategic
plan well before beginning the implementation of the new ERP system. These are
essential for successful business transformation initiatives.
The following are the inquiries you should be making regarding people readiness:
Checklist
 Do you sense that your people are reluctant to talk about underlying
concerns during conversations?
 How do the people feel about the decision-making process relating to
cross-functional issues?
 Do you believe that certain executives need control while others may find it
challenging to voice their thoughts around them?
5. Technical Readiness: Businesses tend to overstate the significance of re-
engineering business and processes but overlook technological readiness, which
is equally important. Their opinions will always be necessary for business model
adjustments and decision-making processes.
You should start developing internal IT support capabilities so that you are not
unduly reliant on your ERP system integrator. There are chances that you'll need
to integrate other technologies and data sources with your primary ERP system.
To support this future state, you should identify new competencies and acquire
them including creating an internal Centre of Excellence (CoE) for digital
transformation.
Here are the questions you should ask to ensure technical readiness:
Checklist
1. What state are your technical teams in? Do they appear to be exaggerating
their abilities?
2. Do they always seem to use programming to solve problems?
3. Do they have a clear enterprise architecture plan and data strategy?

6. 4. Do they have access to the master data governance and reconciliation
flows for the entire company?
6. Project Governance and Planning: There is more to meticulous project
planning and astute management than just digital processes while you prepare
for this significant transition. It also entails creating a schedule for effectively
managing resources and informing stakeholders from inside and outside the
organization about the changes made to physical processes. Do communicate
and ensure your plan is in line with reality. A roll-out strategy should be part of
this plan for implementing these changes in a way that makes sense financially
and technically. KPIs can assist you in staying on course.
It's critical to keep in mind that only you, not your system integrator or anybody
else, are the owner and responsible for this project.
Sum up:
All these viewpoints are equally important, resembling puzzle pieces that must fit
together correctly to form a whole picture. It can be either problematic to
prioritize technology over people and processes or might the technology be
incompatible with the way your team operates, challenging them to use it
effectively. A business blueprint and technological roadmap are necessary to
code and configure things in a way that is consistent with the business vision.
Since every company's plan will be unique, don't hesitate to get in touch with us
to discuss potential ideas for your digital transformation. We would be delighted
to serve as a sounding board for your ERP project!