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Set targets, Establish Budget and Make It Happen

Set targets and Budget Before ERP Implementation

  • Phased approach: It is important to break as ERP project down to manageable pieces by setting up pilot programs and short-term milestones. Depending on the IT experience, some organizations choose the easiest piece as the pilot project, while others may implement a mission-critical application first. The pilot project can both demonstrate the benefits of ERP and help gain hands-on ERP implementation experience.
  • Data conversion: Second generation ERP systems use relational database management systems (RDMBS) to store enterprise data. If large amounts of data are stored in other database systems or in different data formats, data conversion is a daunting task, which is often underestimated in ERP implementation. A two-hour data conversion task could be turned into a two-month effort as a result of the DBA group’s lack of technical experience and the management’s incompetence or ignorance.

Also Read – Why is ERP system important for solar industry

  • Organization commitments: The involvement of ERP implementation goes far beyond the IT department to many other functional departments. The commitment and smooth coordination from all parties is the key to the success of ERP project. The commitments come from the understanding of how ERP can benefit each functional department. For example, if the warehouse staff is not completely sold on the benefits of the inventory control module, they may not input the kind of usage data that is essential to the project’s success.
  • Create partnership between your software vendor and your stakeholders: While this concept may seem obvious, it has been found that the vendor-client relationship is often contentious and sometimes outright hostile. This fact is particularly true if the organization is severely divided regarding the choice of vendor software. As problems arise during implementation, and they will arise, the blame game often begins. Before long, the project evolves into a standoff with neither vendor nor client willing to admit fault. A third-party project director or manager is often the best solution for this dilemma. This person can usually serve as an objective mediator to bring the parties together, finding solutions, rather than allowing the project to slow down to a crawl.

Also Read – How ERP software is beneficial for pipe manufacturing industry

  • Sell, sell, and continue to sell the ERP to your stakeholders: Implementing ERP systems are extremely complex and take months or even years, to implement it. If your stakeholders understand the long-term benefits of the system, they are much more willing to accept any perceived temporary steps backward.
  • Build and leverage process expertise: Process focus is if anything, more important after going live since the company now has an even greater core of process expertise. Successful companies fully capitalize on this expertise and the power of ERP-enabled process. One way is by sending process experts from the implementation team back into the organization, or by having some serve at centers of excellence, some as key process performers and some as business managers. Successful companies never forget the point of the integrated enterprise – that it is not about ERP so much as it is about people involved in ERP-enabled processes.
  • Adequately resource your project: Ensure that replacements are in place to release key team participants. The people who do the daily work of running functional departments are the same people who will be essential to implementing an ERP system. No surprise. The people with the most knowledge will be needed for the majority of the project. Priorities will conflict between the demands of the office and demands of the project. The most effective solution we have seen is hiring or contracting with additional resources to serve as back-fill for key office personnel. Admittedly a new resource cannot do everything that an experienced resource normally does; however, the replacement can handle routine work and coordinate with the experienced person for critical decision.

Also Read – How can ERP system help the cosmetic manufacturing process?

  • Define metrics and manage them: ERP systems are capable of producing dramatic productivity improvements if successfully implemented and properly operated. But expecting ERP to perform miracles will be asking for trouble. The management and employees should be made aware of the benefit so that there are no over expectations. If ERP is touted as a panacea, then there will be dissatisfaction and disappointment about it, which can lead to failure of the system.
  • 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.

Read More – ERP for civil contractors

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Make the best use of consultants’ knowledge

Best Use of Consultant Knowledge

  • 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.
  • Implement aggressive project management processes: The magnitude of an ERP implementation requires aggressive and structured project management processes. An ERP implementation is complex and touches virtually everyone in the organization. Without the structure of project management processes and without a project manager who understands this methodology, the project runs significant risk in time, quality and costs. “Go-live” dates could be missed and the credibility of the project team and the ERP software itself could suffer dramatically.

Also Read – Why automotive manufacturers must use ERP system

  • Create a project organization structure to provide planning and quick response for decision-making and issues management: The toughest problems with any project implementation involve people issues. Pre-project planning must include the creation of clearly defined roles and responsibilities. The following critical roles need to be filled by qualified people: project sponsor, project director and/or project manager, functional team leaders, technical team leaders, project coordinator/scheduler, etc. These people must have dedicated time to the project and they must be willing to be accountable for dealing with issues and making timely decisions. Many ERP implementations become paralyzed when issues are put on hold and are not dealt with quickly.
  • Make the best use of the external consultants and experts: These people are paid huge amounts of money for helping you in implementing the ERP system. So you must make the best use of their knowledge and skills and ensure that the knowledge transfer is complete before they leave the project.
  • Teach the organization to use new capabilities: The natural progression from building capabilities is actually using them. While this may sound obvious, many organizations are far better at building new capabilities than at teaching (and motivating) people to use them. Successful companies avoid this fundamental imbalance. For them teaching goes hand-in-hand with building new capabilities, from defining roles to developing skills to culture shifts.

Also Read – ERP Software in Nigeria

  • Implementation review: This review must be performed after users are competent with the system. The goal is to ask the software vendor to suggest better ways to use the system.
  • Assign clear ownership of benefits: During implementation, it is usually clear that the responsibility for going live-on-time and on budget-ultimately belongs to one person, the project leader. But after going live, who owns the benefits that are being targeted? In many companies, this is a difficult question to answer – no one is identified as the owner. But in successful companies accountability for results is no mystery. The owner may be the business unit leader, a project sponsor, a process owner or someone else. What is important is that there is somebody whose responsibility is realizing the benefits.

Read More here – Which is the most common ERP software used in dubai

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eresource ERP 360 – an Enterprise Solution that can take you to new business heights

eresource ERP 360 – an Enterprise Solution that can take you to new business heights

eresource ERP, one of India’s leading and award-winning Enterprise solutions is a web-based business software that is designed to benefit the entire workforce in your organization to work together smoothly and efficiently with one integrated system. eresource offers both Off The Shelf and industry-specific customisable applications to meet the exact requirement of customers’ business process and terminology. You can request for a LIVE DEMO of this economical, powerful and easily implementable web-based ERP system and feel how this application can be helpful to your organization.

eresource, a ERP 360 system provides a lot of working freedom to organizations. Many major organizations as well as as small and medium companies are in our clients’ list. These companies have implemented eresource ERP system as a cost effective alternative to their manual procedures or their piecemeal software applications.

Under-performed legacy system and cost-factor involving the customization of existing outdated ERP systems in many companies are making the business process a time consuming exercise and, in many cases, impractical.

Also Read – ERP for Plastic industry

Keeping with our practice of moving ahead with the changing technology environment, eresource applications are getting updated on on regular intervals. Our aim to provide industry-specific ERP system for every Industrial verticals are getting fulfilled with introduction of eresource Xcel, eresource nfra, eresource Life Science, eresource e-Trade, eresource 3GL and eresource WMS etc. We have also recently developed exclusive system for Accounts and Finance, HRMS, PMS and Excise etc. that are the products that have been placed under our Off The Shelf option.

All our systems have been incorporated with triggers, alerts and workflow procedures that ensures operational efficiency for any business. Being a web-based ERP system, implementation is not a cucumbersome process like in many other ERP packages. All customer-specific functionality has been included in the system effectively. Although eresource ERP systems have been developed in keeping with the Small and Medium Enterprises in mind many large-scale organizations in India and in Middle Eastern countries are opting for eresource today.

Also Read – How cloud based erp software help the construction industry?

The prime reason why eresource is concentrating more on SMEs is that the SME segments are the ignored sector by the large players in the ERP market. However this attitude of big ERP players towards SME segment has helped ERP firms like eresource Infotech realise the need of an economical and reliable ERP system for this sector. And the result is the birth of one of the most flexible and affordable ERP software in India — that is eresource.

It must be admitted that developing such a package was not easy. As everyone knows that meshing the specific needs of thousands of customers into a single coherent package was not that easy. But eresource’s top quality expert to sift through this mature package, incorporating a massive volume of functionality processes as required by the customer. Being a web-based ERP solution, eresource has simplified the implementation process and it brings efficient operational methods and return on investment (ROI).

Also Read – ERP for automotive

In spite of its benefits one of the most important factor to be remembered is that ERP is not a just another software application in your organization. The system involves every internal process and must be preceded by a reevaluation of every section together with its functions. It is also important to note that the ERP system will not change the management functioning on its own. You must keep in mind that it is an important and decisive tool, but in order to obtain a correct development you will have to decide carefully who is going to command it, as well as the way in which the data will be saved and how information will flow.

Just implementing an ERP system alone won’t help the organization make any success. Though the effectiveness of an ERP system could be measured by the improvement in the ROI, the goal of measurement is not to measure; rather, it is to improve performance and processes are the point at which this can be best accomplished.

A well-performed ERP system can be maintained till about 15-20 years. In the later stages the package will have old architecture. It will become very difficult to make changes in the program code without inflicting hazardous damage to the system’s stability. It is possible to give older systems a ‘facelift’ with modern tools.

Also Read – Key benefits of ERP software for the food and beverage industry?

Though those ‘facelift’ can extend the life cycle of the package for some years, they will certainly speed up the appearance of the useless codes. If your ERP system is under-performing, it is better to go for an overhaul of the system. Do the right evaluation as per your requirement and implement a suitable ERP system that could take your business success to new heights. As the saying goes – It is better late than never.

Mail Us at sales@eresourceinfotech.com for Live ERP Software Demo