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The Critical Success Factors of ERP Implementation

11/22/2011 02:40 by LindaRodrigues

First answer posted by tdintx at 11/22/2011 02:40
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  • tdintx
  • ERP (enterprise resource planning) is a single system that integrates multiple business applications. All applications, such as payroll, finance, order processing and customer relationship management, share a single set of data, formatting and processing rules. This is why implementing ERP differs from stand-alone software applications.

     

    Planning

    A good plan is the foundation to any project. Set clear attainable goals, identify the right people to involve and set a reasonable time line.

     

    Cross-Functional Teams

    The key to long-term success with ERP is that all functional areas participate in the implementation even if only certain applications are deployed first. Because ERP shares data between applications, everyone should have input to how it is configured.

     

    Focus on Business Processes

    Before reviewing how the new system performs business functions, organizations should not only review their current processes but define their ideal process. Current business processes may have been designed to fit a particular system; you may support the system but do nothing for your business needs. Once you have your future processes defined you can perform a fit/gap with the new software measuring against where you want to be rather than where you have been.

     

    Data Conversion

    The most overlooked component of an ERP project is conversion of information from multiple legacy systems into a single format that will be shared across the organization. Older systems tend to have fewer constraints that often lead to bad data. The clean up and transformation process should start early and go through multiple iterations and validations.

     

    Change Management

    Changing software means changing processes, procedures and even policy. Organizations willing to change are most successful with ERP implementations. Change must be accepted and communicated from the top of the organization to the bottom.

     

    People

    Technology projects most often fail because of people rather than technology. Strong project sponsorship that clearly defines objectives and provides continuous oversight is as important as any technician on the team. Also of vital importance is a core team that owns the project and is empowered by management to make decisions and change the way the organization will do business.

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