Success factors of an ERP implementation

ERP is not 'everything for everybody' solution
This is the third part of article on Success factors of an ERP implementation. We are sure
this series of articles will guide our readers make their ERP system work effectively and
successfully.
Communicate and manage expectations at go-live: Many stakeholders in the organization
expect the ERP to be an 'everything for everybody' solution. Even in the best-case
scenario, this is rarely true. And inevitably, some functionality must often be re-scheduled
into a post "go-live" phase. All of this combined could crate disillusionment with the new
system. If the project teams are struggling to meet deadlines, they may have to make
decisions on the functionality that needs to be delayed in order to meet the original
"go-live" date and avoid delays. These decisions must be communicated and "sold" in the
stakeholders to ensure expectations are effectively managed. The organization needs to
know what will be in place at "go-live" and when they can expect the additional
functionality.
Extend capabilities beyond the ERP foundation: As a backbone technology, ERP delivers
more powerful benefits when companies do their utmost to build on that platform. In doing
so, successful companies turn to a host of complementary applications that generate
ROI, from advanced planning and scheduling to warehouse management to sales force
automation. Successful companies also pay closer attention to the constant stream of
innovative new solutions developed by today's software developers like CRM, SCM, BI,
etc.
Ensure the project has sufficient budget: What project teams feel they have enough
money budgeted for their projects? The perception of not enough funds is likely to be even
greater in a project with the complexity of an ERP. Careful planning during the budgeting
process helps project teams make better decision on timing and allocation of resources.
If budgets are not sufficient to support the deadlines, project resources find themselves
working extensive overtime and under constant pressure. Ultimately, morale disintegrates
along with the quality of work. If counter measures are not implemented the image of the
entire. ERP system could suffer not only during implementation, but also long after
go-live.
Encourage functional ownership of the project: Doing project work is a way of life for most
IT departments, while functional departments typically have little or no experience with
projects the size of ERP implementations. So, many organizations choose to let IT lead
the ERP implementation. Rarely is this decision successful. In the long term, the
functional departments with own the ERP. Hence, they must establish the rules that
govern system functionality; learn how the system will handle business processes within
their departments and be able to obtain information by on-line inquiry or by creating their
own reporting. This ownership should be in place at the start of the implementation
project.
Develop dependency-driven project schedules that can be tracked and managed to
provide early warnings and help avoid crises: Successful ERP project implementation
have well planned project schedules. These schedules are not built from a desired end
date. Instead, they are built with a realistic view of the amount of time needed for the
various tasks. These tasks are lined with clear dependencies - what must happen before
a task can begin. With a schedule, you can track and manage your progress throughout
the project. Most importantly, a well-designed project schedule can provide early warnings
of problems.
Implement pre-project readiness assessment and overall project planning: Most
organizations have never been involved in a project as complex and cross-functional as an
ERP implementation. Additionally, an ERP project requires near full-time participation. A
readiness assessment conducted prior to the project kick-off can help identify areas of
strength and potential problem areas in need of improvement. This information is
extremely helpful when planning the project budget and the project tasks. For more information kindly
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