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ERP Implementation Strategy

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ERP implementation is not an easy job; it requires proper planning and strategy. Organization must prepare a blueprint of implementation before starting the project with the help of an expert consultant or vendor and key person in the organization. Implementation strategy starts with planning, organization must set a goal for ERP implementation. Selecting the right product is a vital move.

Enterprise Resource Planning made for similar type of industries or vertical will be the smart move. Project requires full attention of all involved employees. It touches almost every part of the business. Categorization of implementation things should be divided in VED (Vital, Essential and Desirable). Vital things should be implemented first and then essential and desirable.

Involve all the users in ERP implementation planning and executing. Ultimately, users will use this software. It is better to trained all the users along with ERP implementation. This will create more interest and better understanding in users. Set your budget at the largest level (double the consulting firm's estimate). Usually, projects not completing in under the estimate. Don’t cut the training cost, but be realistic about this. Don’t keep adding to your project in the planning and implementation phase, desirable things can be eliminated to reduce the ERP implementation cost. Get your ROI (return on investment) first and then add desirable things. Otherwise you will have a never-ending project (unsuccessful project/failure of project). Look closely AMC (annual maintenance cost), it should be transparent to you by your vendor if you are outsourcing implementation.

Choose ERP of similar vertical and evaluate your processes carefully and decide if changing them to fit a particular software would be good. You may customize the software as per your requirement, but too much customization can ruin your budget. It is better to choose enterprise software that can conform to your needs.

Check the vendor stability and ability by site visiting where they have implemented similar type of implementation successfully. You can also discuss the vendor stability with outside experts. Look for a company that adds and upgrades necessary features (tax, vat, excise, etc.) and doesn't lock you into an expensive upgrade cycle.

Related Books
ERP Making It Happen
The Implementers' Guide to Success with Enterprise Resource Planning
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It provides the working knowledge to implement superior business processes that yield significant competitive advantage. Implementing software successfully is a critically important part of running a manufacturing business at a world-class level.

Maximizing Your ERP System
A Practical Guide for Managers
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Bridging the theory and realities of current software systems, Maximizing Your System provides practical guidance for managing manufacturing. The book particularly addresses the issues facing smaller manufacturers and autonomous plants of larger firms.

 Read Related Articles

The Effects of ERP on SME
Human Resource Processes with ERP - SAP HR Module
ERP Selection for SME - Microsoft Dynamics (NAV)/ Navision
ERP Competition and Challenges for SMEs/SMBs

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