It’s no wonder today almost every business is transforming into digitalized operations. They are more willing to invest money in advanced software systems and applications like ERP, CRM, or Warehouse Management for optimizing business processes and fostering innovation in their products and services for better customer experience, sales, and growth. However,?in their pursuit of digital transformation, they just choose technology and go for implementation by overlooking or neglecting the importance of predetermined arrangements, operating mechanisms, expectations, thoughts, and issues from the team members involved in the project. As a result, businesspeople and industrialists likely miss out on some critical factors while implementing a new ERP system that may result in an escalation in the project cost as well as the time of completion of the project, sometimes even leading to project failure.
In this newsletter, we would like to discuss some critical factors on which companies should focus and execute before moving forward with ERP software implementation. These critical factors are majorly classified as?Organizational Readiness?and?Change Management System.
Organizational Readiness?has three key facets:??People, Process, and Technology.??All these facets are taken care of and devise organizational readiness and change management strategies to minimize disruption during the new ERP system implementation.
Organizational Readiness internally comprises six major components:
- Strategic and Executive Alignment:??It defines how well the key strategies and expectations of executives from the client side will align throughout the ERP implementation phase. Also, they should ensure everyone is on the same page and consensus on the project objectives.
- Operational Readiness:??Operational Readiness resembles 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 identify the mental models of each member of the client team towards the project. They should seek answers to queries like: Does the team involved in your project have the same mental models? How will the revised business processes be implemented without significantly impacting the core operations?
- Data Readiness:??Data readiness is the one that is perpetually disregarded while assessing?Organizational Readiness.?First off, a deep understanding is necessary when dealing with data or any data issues. The client should seek clarifications against critical queries related to data readiness: How are the master data models now in use? Do you have data governance problems where the model doesn't seem to follow any logical structure?
- People Readiness:?One of the most critical organizational readiness components is people readiness, as they are the sounding board for any new ideas in the business. They should be invited for a thorough grasp of current processes and how those may affect the company stakeholders' willingness towards the new and changed business models or processes. The client should also initiate a change strategic plan well before the project implementation, as it is essential for successful business transformation initiatives.?
- Technical Readiness:??It’s commonly observed that companies tend to overstate the significance of re-engineering business and processes but fail to assess their technological readiness, which is equally important. The internal IT team’s opinions will always be necessary for decision-making processes. The client should identify and acquire new competencies, strengthen their internal IT support capabilities, and create an internal Centre of Excellence (CoE) for digital transformation.
- Project Governance and Planning:??Project Governance and Planning entails creating a schedule for effectively managing resources and informing stakeholders 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 a new ERP system in a way that makes sense financially and technically. KPIs can assist you in staying on course.
All these six components of Organizational Readiness are equally important, which resemble puzzle pieces that must fit together correctly to form a whole picture. It will give you the right approach toward the ERP project as early as possible and enable you to drive a holistic approach in implementing new technology with people and processes, preventing disjointed efforts and disparity.?
Since every business plan will be unique, don't hesitate to contact Roadmap IT Solutions to discuss potential ideas for your digital transformation. We are delighted to serve you in the best possible way for your business.
