Key Takeaways:

• Some of the typical parts of an ERP solution include defining project objectives, environment set-up, data migration, and integration testing.
• ERP projects need coordination and detailed planning in order to succeed.
• An experienced ERP project leader can foresee any issues that could arise and manage teams to resolve them.
• This is part 4 in a 4-part series on ERP systems in manufacturing supply chains. Links to other blog posts can be found below.

ERP System Implementation Considerations

Enterprise resource planning (ERP) projects carry significant risks due to the heavy investments of time, personnel, and resources involved. This is daunting enough to cause many organizations to avoid ERP replacement projects. Implementation is a complex and challenging process that requires the integration of multiple business functions into a single system.

Sustaining planning, coordination, collaboration, and execution across the organization can be difficult, especially in long-term projects like ERP implementations. For ERP implementations, competing organizational needs and requirements often arise. Another consideration is personnel turnover, which further drains experienced resources.

It’s crucial to conduct an accurate, independent assessment of existing processes, personnel, and technology to ensure success. Identifying any associated gaps before ERP implementation helps define how to blueprint and configure the new ERP system effectively which sets the foundation for proper execution and alignment with project goals.

A typical ERP solution implementation involves:

• Identifying the needs of the organization
• Validating those solutions through final selection including detailed requirements, scripted demonstrations, and solution validation
• Negotiating with vendors to ensure implementation scope and cost are both reasonable and optimized
• Defining project objectives
• Selecting a cross-functional project team
• Managing the ongoing change and project effectively
• Designing the system around future state business processes
• Environment setup
• Software configuration
• Data Migration
• System, Process, User, and Integration Testing
• Managing issues and risks
• Cutover activities prior to Go Live implementation
• Post Go Live transition to ongoing operations

ERP Solution Implementation Challenges

Involving an experienced resource early in the project is critical for navigating common challenges when implementing an ERP system.

For example, pre-implementation planning by an experienced resource is essential. It can help the team identify the critical activities that need to be accounted for in the new system, task frequencies and cycles, reporting needs, and operational gaps. Their insight prevents costly delays which result in missed delivery dates and extra costs.

ERP projects require detailed planning and coordination. An experienced project manager knows the details and how they add up to the overall project completion. They protect timelines, conserve resources, and help the team drive to key milestones.

Data migration is a core project activity, especially when complex manufacturing and financial systems are involved. For example, an expert resource will be familiar with the legacy data involved in each closing and opening balance (e.g. general ledger, purchase orders, sales orders, etc.) and can guide data cleansing, standardization, mapping, and integration activities.

Why to Partner with an ERP Expert

ERP systems are large, expensive projects involving every facet of the organization. Very rarely does an organization have an experienced person available to lead such a project, so an outside resource is often essential. From negotiating a favorable subscription agreement to managing the myriad of tasks required to have a successful implementation.

Change management should be integrated throughout the project to tailor the approach to the organization’s specific needs. An experienced leader will embed it into every phase and task accomplishment. Benefits of an experienced project manager include clear communication, an understanding of resistance points, and facilitating teamwork in the midst of challenges.

The need for an experienced leader at the helm becomes even more prominent closer to the implementation date. There are important cutover activities, issue identification and resolution, Go Live planning and preparation tasks that need to go well for smooth transition to the new system.

ERP Software Implementation Opportunities

A major project like an ERP system implementation presents a unique opportunity to build individual, team, and organizational competencies and capabilities. An experienced project manager can help upskill the team to capably handle both the one-time implementation and the ongoing operational improvements post Go-Live.

Another opportunity to add and improve skills involves the adjustment to cloud operating environments and the continuous improvements they offer such as automated workflows. To get the most out of the new system, the support and business teams need to work out a process for effectively incorporating the features and functions delivered in the periodic updates and fixes.

Vendors are generally competent in delivering the technical components of an implementation project. Project management and solution architecture skills require greater knowledge of the business and more experience. Keeping this in mind will aid in managing expectations and help the organization plan for gaps in the vendor’s capabilities. Leveraging the vendor’s skills and abilities while mitigating their limitations is a key factor for a successful implementation.

Benefits of ERP Consultants in Manufacturing

An ERP implementation that integrates and improves manufacturing SCM requires careful planning to assess needs, challenges, and opportunities. ERP consultants draw from their experience working with a wide range of clients across various industries to provide valuable insights and recommendations.

Throughout the whole enterprise software project lifecycle, from ERP and enterprise software planning to software assessment, selection, and implementation through post-implementation support, RubinBrown is here to help you with all your enterprise software needs. At RubinBrown, we manage these projects as a comprehensive “Business Transformation” project, which helps you get the business results expected from your new ERP system.

An advisory firm like RubinBrown and its team of consultants enables client success by protecting the client’s best interests during all phases of the project. They work together to select, implement, and optimize ERP software that will dramatically improve processes, technology, and performance.

At RubinBrown, our firm provides you with the requisite expertise, guidance, and resources to navigate the complexities and risks of ERP implementations. RubinBrown has over 25 years of proven experience as an independent consulting resource to help you find and implement the best ERP system for your business.

 

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If you are interested in discussing how any of the above ERP system features could assist your business, feel free to reach out to one of our partners listed below. We would be delighted to discuss your company's ERP/SCM requirements with you.

Published: 12/05/2024

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