The recipe for successful ERP Implementation

In the last article , we mentioned most common stages of resistance during ERP implementation in an organization.

In this article, we will discuss some sound strategies that we have discovered while implementing ERPNext for our customers in a variety of industries. The industries ranging widely from non-profits, healthcare to manufacturing, logistics and high-tech companies.

While our experience may be diverse, it probably lacks depth (after all, we are only seven years old). We do not claim to be experts (or magicians) and simply are stating best strategies that our clients implemented while consulting with us.

1. ERP Implementations Are Business Transformations, Not Just IT Projects

One of the most common misconceptions is that ERP implementations are strictly IT-focused projects. They are not. ERP implementations are business transformations. This was something that we had to explain to our clients. Repeatedly.

Buying an ERP is a business decision, and organizations should treat them as such. An ERP system implementation will provide an opportunity to improve and redefine business processes, operating models, and organizational roles (you may find yourself changing seats).

The focus should be on transforming how the business operates, not just installing new software. This broader perspective will help ensure that the ERP system (new or existing) will deliver tangible, long-term business value.

Business & Technology should act as a bridge to achieve organizational goals.

2. Set Realistic Expectations from the Start

Having too many expectations (often unrealistic) is a recipe for disaster. Organizations and business owners wrongly estimate (mostly underestimate) the time, resources, and effort required for successful implementation and later a successful execution. Yet this happens more often than you think.

Often shortcuts are taken which lead to issues later. For instance, organizational change management, training or quality assurance might be neglected.

It's important to set clear, realistic expectations that includes important components—people, tools, existing technologies, operational, functional, HR, finance and other cogs of the wheel. These are things that even an implementation partner will not be fully aware of.

Aim for the clouds but keep your eyes on the road!

3. Control the Pace of Your Transformation

It is important that business owners understand that their organization is unique and the implementation time and resources required would also be unique. Do not listen to your peers or industry experts. While there maybe industry benchmarks about successful ERP implementations, business owners should allow room for flexibility.

And while there is definite pressure to implement systems quickly, rushing the process can lead to disruptions and issues. Sustainability and avoiding burnouts can serve as keys here to maintain a steady pace.

Business owners should spend more time in the planning phase. Begin by defining clear business requirements and how to align the new system with your future business goals (of course they keep changing) before jumping into implementation. Organizations will also require processes in place to allow for future business goals.

A well-paced, strategic rollout reduces resistance by allowing happy teams to adjust, and ensure that the overall process of implementation is both smooth and sustainable.

Two or three additional months might cause some pain initially, but it is still better than having to bleed out later.

4. Establish a Robust Communication Strategy

Robust. That’s how communication should be between stakeholders. A major cause of Resistance is unclear communication. It is vital to create a transparent & robust communication plan that clearly explains the purpose of the ERP system, how it benefits the company, and what employees can expect (and what they should not expect). Messages should be customized for different groups and individuals, and address concerns if any. Listening to feedback and addressing concerns early in the process can help reduce resistance significantly.

As any grandparent would say, “God has given us two ears and one mouth.”

Listen twice as much as you speak.

5. Engage Key Stakeholders from the Beginning

Involving key stakeholders – managers, veteran employees and department heads, early in the project helps buy-in and support. These individuals can act as champions for the new system, and will communicate the message that the new ERP system is vital to everyone’s success. They can also address concerns within their teams. If stakeholders are engaged in the planning process, business owners and implementation partners can gather valuable insights into challenges and note down recommendations.

If everyone can see the “vision”, there will be less resistance.

6. Provide Comprehensive Training and Support

It is essential to conduct comprehensive, role-based training. This ensures employees feel comfortable with the new system. Training should be practical and relevant to their daily tasks. Also support should be provided - help desks or dedicated teams, to assist employees after the system goes live. This builds confidence and minimizes the anxiety that often accompanies new technology. Multilingual support, training documents should also be made available.

No one, absolutely no one should feel left out.

7. Ensure IT Infrastructure Readiness

Technical issues can worsen and increase resistance. Organizations undergoing ERP implementation should have the IT infrastructure needed to support the ERP system (non-negotiable). Pilot tests and troubleshooting potential issues is critical before going for a full-scale rollout. This minimizes technical disruptions and boosts overall confidence in the system.

Look before you leap!

?8. Leverage Expert Third-Party Consulting Support

ERP implementations are complex, and it can be difficult to manage all aspects internally. So don’t do it yourself. ASK FOR HELP. Get good references (we have already mentioned this – do not ask your Uncle for a good reference!). Its also more pertinent (perhaps critical as well) that that they have skin in the game. (We do!)

Bringing in expert third-party consultants can provide support in areas such as project governance, change management, and process improvement.

Experienced consultants act as a sounding board. They also ensure that best practices are applied throughout the implementation. This external guidance can be instrumental in keeping the project on track and ensuring its alignment with broader business objectives.

At Intellore Systems, we specialize in guiding businesses through these complexities, ensuring a smooth transition and helping you maximize the value of your ERP investment. So, take a deep breath, buckle up, and remember – while the journey may be tough, the rewards are well worth the effort.

Every day, we try to navigate the digital transformation terrain with determination and a spirit of adventure (it isn’t fun all the time, but hey – we try! One day at a time).

Keep watching this space. Let us know in the comments below what you think. Feel free to add any pointers that we missed.

Reach out to us at [email protected] or visit: www.intellore.com