Ways to get best ROI from an ERP Implementation project!

Having an Enterprise Resource Planning (ERP) application is not enough, it is crucial for organizations to also know how they can put their ERP implementation process on a fast track and maximize the returns from this investment. Highest level of efficiency can be achieved when existing resources are utilized to the best advantage of the organization. Especially, for a business that has invested huge amounts on implementing an ERP Solution. 

Here’s how organizations can possibly achieve it...

1) SHIFT focus to RoI estimation:

Organizations must shift their focus from the investment on ERP implementations to the return on investment it will provide. It is very important that the direct and indirect impact of ERP on the business processes are quantified, the key lies in reviewing metrics and tracking benefits and also ensuring that these are measured against the pre-implementation environment.

2) FIND ways to quantify RoI:

Organizations must be able to articulately state the top problem areas, then it can evaluate the RoI a lot more clearly by matching returns against what the company started out to achieve, periodic assessments across departments and functions can help quantify the cost comparisons.

3) STANDARDIZE processes:

Organizations can optimize the ERP deployment by structuring and designing efficient processes that flow across departments and functions. Best practices must be applied, if needed, to re-engineer and systematize processes, this is to further ensure that the processes fit in with the ERP system requirements. Individual user roles and responsibilities need to be clearly defined as well. 

4) FOCUS on long term business improvements:

Organizations must determine clear short and long term goals, well in advance. ERP implementation should be aligned with business imperatives, keeping medium- to long-term objectives in mind all the times and avoid short-sighted decisions.

5) It needs a leader's VISION:

The broad vision and strategy of senior management members, along with their plans for business transformation, should be well articulated and communicated within the organization. The senior management needs to spend time on the project, be actively involved as it progresses and be interested in the process and its outcomes. 

6) Groom an efficient in-house SUPPORT TEAM:

It is important to involve both business and IT key executives throughout the process of implementation. A dedicated ERP operations team should be formed to take care of the operational support post implementation.

7) TRAINING is crucial:

Ease-of-use plays a key role in determining the success of ERP adoption, and training plays and important role in enabling this. Transitioning from any legacy system is a huge risk that can be addressed/mitigated only thru constant training of end users.

8) AVOID over-speeding:

Companies that implement ERP, invariably get intimated by the time frame and cost of an implementation and also seek to accelerate the 'Go-Live' date, at times they force 'Go-Lives' even if they lack preparedness for it. Without the right tools or change management strategies this induces risk and difficulties in implementation that can lead to higher overall cost of ownership and erosion of the business benefits of deploying an ERP system. It is however important to meet timelines, because any delay may cause people to loose interest and go back to their old system, but this must be achieved with meticulous planning, execution and controlling rather than pressing the panic button at the eleventh hour.

9) DO AWAY with legacy system:

Most important thing in embracing change is to be able to forget old habits. It is at times difficult for the end user community if they have been using a particular software, to make them unlearn and leave it behind. So just going live with ERP does not suffice; deadlines should be set to move away from the old system and users should use ERP system to the maximum.

10) TOP-UP the ERP system with enhancement tools:

ERP is basically a transaction processing system and its effectiveness might depend on how organizations build useful systems that integrate with the core ERP system. E.g. MIS systems, BI systems, Advanced Budgeting, Advanced Planning, etc. The basic ERP reports are more of transaction reports rather than those that support top management decision making. So, integrating with specialist systems can act as 'multipliers' or 'enhancers' and make an ERP really valuable.

11) Don't let INFRASTRUCTURE become a bottleneck

A detailed discussion and due-diligence on the infrastructure requirements must take place, especially if a company is opting for an on-premise ERP implementation. Delay in transaction processing, slow response time can act as a dampener of early enthusiasm. An ERP system definitely calls for a reliable IT infrastructure, an infrastructure introspection therefore is required to be done by a company to preempt these problems.

12) It is more of a CULTURAL CHANGE

 Primary objective of ERP system is to consolidate the organizations data onto a single platform, this calls for the integration of people, process and technology. This transition in a way becomes more of a cultural project rather than an IT implementation, people are invariably apprehensive about the changes that the new ERP system brings about, so, the management needs to bring about a cultural transformation in the organization where people are open to collaborating and sharing details.

13) CONTINUAL EVALUATION is critical

Once an ERP system goes live, users discover bugs or errors in the system. At this stage, a positive attitude is required from the management, users and the implementation partner towards smoothening out any rough edges. It is an on-going process to find bugs or issues and close with resolutions until the system has reached a steady state, and it is normal in any implementation. 

14) Don't look for PERFECTION

 As in any other business process, there is nothing called perfection in ERP as well. An analogy to illustrate the point; A situation where a boy is trying to learn cycling, with his parent assisting him. When the boy starts acquiring reasonable balance, the father takes his hands off the bicycle. Perfection cannot be achieved at that moment, neither the boy gets dissuaded if in process he hurts himself. This should be the case with companies deploying ERP, the aim should be to continually work at the system and improvise it over time!

15) A good IMPLEMENTATION PARTNER is essential.

Last but not the least - A good implementation partner is essential not only for the successful implementation of an ERP but also for its long term success. Ideal implementation partner must have domain expertise, industry vertical knowledge, and previous implementation experience. Another important aspect is find a partner who is genuinely interested in its client's success, is supportive and has cut-out professional approach in its services. A Win-Win situation.

 Summing up, making ERP work is no cake-walk! there is nothing called an easy implementation of ERP. So if you want to make an ERP solution work for your organization, it is clear that you will also have to work at it, tirelessly and meticulously!