Implementing enterprise resource planning (ERP) — a management system that integrates business processes such as production, sales, inventory, manufacturing and marketing across multiple divisions and organizations — can be a complex, expensive, time-consuming and labor-intensive undertaking. And if you set your sights on speeding up your system’s “go live” date to reap anticipated benefits faster, the process could become even more complicated.
To accelerate or not to accelerate?
There are several good reasons to want to accelerate ERP implementation, one of which is a faster return on your investment. Obviously, the sooner you can benefit from reductions in inventory, material and labor costs, overhead costs, and streamlined business processes, as well as improvements in customer service, sales and accounting controls, the better.
But speeding up implementation could result in partially or unsuccessfully implemented systems or usage that deteriorates over time. The end result could mean fewer benefits, greater costs and more headaches. If you decide to accelerate ERP implementation, here are several pitfalls to avoid:
Weak project management. Choosing the right implementation team is critical. Your team should include members from all relevant departments and be charged with implementing a training and system implementation process that works for everyone. The team should be able to set and meet quantifiable objectives for implementation and be held accountable by senior management.
Shortened end-user training. End-user training is one of the most neglected aspects of ERP — particularly during accelerated implementation. That’s because putting it on the back burner is believed to save time. But the perceived time savings could result in a weak transfer of information that leaves users unable to use the system effectively.
Inadequate “change” management. Many ERP systems fail because of user resistance. Employees may develop negative attitudes about the system, believing, for example, that they can’t be reasonably expected to complete their usual duties as well as assist in user testing and implementation. The situation can be made worse by users’ unwillingness to let go of old practices and processes and embrace new ones.
Because of a lack of time to orient staff to new business processes, dealing with organizational change often goes by the wayside during accelerated implementation. Developing a plan for transitioning your staff to the new system and encouraging their buy-in will go a long way toward successfully implementing your ERP system.
Choosing the wrong software or vendor. Carefully research and select a vendor that has experience in your market niche and company size. Don’t accept, for instance, that a vendor’s retail software will work well in your manufacturing environment if there’s no data to support the vendor’s claim. Choose software that’s capable of handling both your current needs and increasing volume as your manufacturing business grows.
Lack of support. Ensure that your senior managers provide the project implementation team with adequate support by making sure it has the resources — financial and otherwise — needed to complete the task. An experienced ERP systems consultant with a track record of successful implementations can provide further assistance by helping you choose the software that fits your business needs rather than “re-engineering” your business to fit the ERP system.
Neglecting post-implementation planning. Even when implementation is successful, the rate of change in business practices calls for continuous systems development. Failure to plan for the post-implementation phase — when your users should not only be able to operate the system, but also enhance and maximize its utilization — could lead to stagnant results down the line, diminished system usage and unmet business goals.
Perfect timing
ERP systems are complex and expensive, but the right one — properly implemented — can provide significant benefits to your manufacturing company. By consulting with an expert and avoiding these and other implementation pitfalls, you can get yours up and running at a pace that’s right for you.
Kelley Miller, CISA, CISM
Principal
