A Guide to ERP Success

INTRODUCTION

Enterprise resource planning (ERP), client/server applications for managing accounting, manufacturing, distribution, and human
resources, are the de facto backbone of business intelligence. However,
while many organizations consider the introduction or enhancement of an
ERP solution, the significant and well-publicized challenges associated
with ERP implementations often daunt them. According to Gartner Group,
“…for 40 percent of enterprises deploying ERP or ERP II systems
through 2004, the actual time and money they spend on these
implementations will exceed their original estimates by at least 50
percent (.07 probability). Many enterprises have suffered spectacular
project failures due to unplanned or underplanned implemen tation
projects.

Reliably predicting implementation costs and the time required for
implementation are two key outcomes of successfully planning an ERP
initiative. Organizations must be able to accurately predict costs,
resources, and requirements, and develop a plan of attack both before
the implementation begins and throughout the project.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
While ERP implementation horror stories highlight serious business
consequences and criticize leading ERP vendors for botched deployments,
often the software giants are not to blame. Companies must realize that
ERP systems are not a stand-alone solution, but instead an enabling
technology to support a broad corporate change, and the key to a
successful deployment is in the process.

Organizations must broaden their perspective in order to put their ERP efforts back on a successful path. Too many overlook a critical stage: New business processes must be established, thought through, and implemented before the selection, purchase, and deployment of a software solution.

As more organizations worldwide choose to build their corporate
knowledge base around complex infrastructure solutions, the need to
understand how to successfully implement an ERP system has become increasingly important.

BARRIERS TO S UCCESS

Typically, there are three process barriers that prevent many ERP
implementations from being successful. These barriers result in an
elongated development cycle with poorly defined and managed
requirements and, as a result, poorly defined measures of success. The
implementation team often is tasked with chasing a series of fluid
requirements, no process for managing changes to the project scope, and
a false belief that technology alone will prevail. These teams are,
without fail, disappointed with the results.

Download A Guide to ERP Success

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