How can you use Agile ERP models to improve your business?

1 What is agile ERP?

Agile ERP is an approach that applies the principles and practices of agile software development to ERP implementation. Agile software development is a method that emphasizes collaboration, flexibility, and customer feedback, rather than following a rigid and predefined plan. Agile ERP aims to deliver value to the business in small and frequent increments, rather than in one big bang. Agile ERP also involves adapting to changing requirements, testing and validating the system regularly, and involving the end-users and stakeholders throughout the process.

2 Why use agile ERP?

Agile ERP can offer several benefits to your business, such as faster and more frequent delivery of business value. By breaking down the project into smaller and manageable chunks, you can prioritize the most important features and functionalities, and deliver them earlier. This way, you can start reaping the benefits of ERP sooner and avoid wasting time and resources on less critical or outdated aspects. Additionally, agile ERP can lead to higher quality and lower risk through testing and validating the system at each iteration. This helps identify and fix any errors or issues before they become major problems. Furthermore, agility allows for greater flexibility and responsiveness by embracing change and feedback. This enables adjustments to the scope and direction of the project as the business environment evolves, as well as incorporating new technologies, innovations, or best practices into the system to keep it up to date.

3 How to use agile ERP?

Agile ERP is not a one-size-fits-all solution, but rather a mindset and set of practices that can be adapted to your specific context and goals. Common elements to consider are scoping and prioritizing, planning and executing, and reviewing and improving. To scope and prioritize, you should define the vision and objectives of the ERP project, identify key stakeholders, create a product backlog, and regularly update it with user and stakeholder input. For planning and executing, you should divide the product backlog into smaller units of work (sprints), plan the scope and goals of each sprint, assign roles to team members, monitor progress with tools like burndown charts, and deliver features in time-boxed periods. Lastly, for reviewing and improving you should evaluate results/outcomes of each sprint, collect feedback from users/stakeholders, conduct retrospectives to reflect on what went well/wrong/can be improved in next sprint, use feedback/lessons learned to refine product backlog/system/process.

4 What are the challenges of agile ERP?

Agile ERP is not without its challenges, and it is important to be aware of them and address them effectively. For instance, agile ERP requires a considerable shift in the organization's culture and mindset, especially if it is accustomed to a traditional and waterfall approach. It is necessary to foster a culture of collaboration, trust, and empowerment, where team members can communicate openly and make decisions. Additionally, agile ERP demands a skilled and dedicated team with technical, functional, and business expertise. It is also essential to allocate enough time and resources for the project while avoiding any distractions or interruptions from other projects or priorities. Moreover, scope creep should be avoided as it can lead to an increase in features and functionalities without considering the impact on the budget, timeline, or quality. Lastly, it is important to maintain a balance between speed and quality while ensuring that the system meets the standards of users and stakeholders.

5 What are the best practices of agile ERP?

To succeed with agile ERP, you need to follow some best practices. Aligning the ERP project with the business strategy and goals is essential to ensure the system supports and enhances core competencies and competitive advantages, as well as delivering value to customers and stakeholders. Involving the users and stakeholders throughout the process is also important, from scoping and prioritizing, to planning and executing, to reviewing and improving. Embracing change and feedback is key, as it provides opportunities to improve the system and process. Monitoring and measuring results, using data and evidence to inform decisions, learning from mistakes, and celebrating successes are all necessary components for success.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?