Enterprise resource planning (ERP) is an automated application that brings a new way of working and communication within and outside the environment of the organization. In order to reap full benefits out of ERP, you need to know the critical factors that involved in implementing the ERP successfully.
- Clear vision: Clearly define the vision, goal and business plan for ERP implementation, and these things should align with the organization’s goals. These are the key ingredients for the successful implementation of the project. Most of the organizations fail in its implementation, because of poorly defined vision, scope and business requirements.
- Knowledgeable, experienced and dedicated staff: The key strategy of a successful ERP implementation is recognizing the people who have relevant knowledge, experience in various software packages, business process and industry. And engaging them early on and continuously throughout the project.
- Support from top management: Top management support, commitment and participation is necessary to implement ERP successfully. Their support acts as a fuel to increase the willingness of the lower level managers to allocate resources to complete the project.
- Excellent project management: Project scope must be clearly define with objectives at the commencement of the project and also should be able to identify what all the modules required for your business process.
These project teams should be responsible for effective project management that allows the organization to plan, organize and monitor various activities. They provides two-way communication between the management and ERP vendor.
- Change management: ERP may change the way the organization operates. This is because the existing company’s structure, business process are not compatible with the structure, tools and information provided by the ERP system. Hence, it forces the key business process for re-engineering to align with the organization’s goal.
Employees find it difficult to change their roles, process and behaviors which they have learned over years of work. Therefore, proper training should be given to the employees to their new job roles and process. So, that over a period of time they will accept and internalize these changes and developments.
- Data accuracy: Data accuracy is a critical thing required in ERP system to function properly. Example, if someone has entered the wrong data, it disturbs the entire organization process. Therefore, properly educate the users on data entry procedures and the importance of the data accuracy.
- Training: User training and user involvement are the important factors to implement the ERP successfully. So, end users should be trained extensively in the early days of implementation. This helps them how to use the new system properly and can complete their work effectively at a fast rate.