10 essential tips for implementing an ERP system
Staff
Published: 28 Sep 2006 17:35 BST
...payroll exceptions or creating journal entries, involve the most experienced end users as much as possible.
Organisations that focus on technology and ignore the human element of implementations often fail. ERP by definition is about people, not just technology and organisations. Minimise the people side and run a larger risk of missing the target. In fact, process change is often part of the case for the ERP investment.
#7: Form a 'centre of excellence' team
Create a centre of excellence — an oversight team in addition to the project management office (PMO). Vital to the success of an ERP implementation is a strong tactical team that can manage change and drive toward stability. Most businesses are not prepared to manage the impact to their day-to-day functions during the implementation. This team is responsible for help desks, testing, training, documentation, database administration and many other operational issues and "fires".
This team's functions are all closely co-ordinated with the go-live handoff for each module/milestone, and it can act as the "super-user" from day one to help avoid chaos.
#8: Invest in business intelligence
In addition to managing operations more efficiently, common data enables ERP software to support more detailed analysis and reporting. Business intelligence (BI) is the engine — the database of business rules that need to be defined for the benefits to be achieved. Building it takes time and enterprise-level decision making.
Often, ERP systems are required to integrate with existing databases. The customer helps lead the BI effort and actively participates in integration. Some things can't be accomplished by the IT pro alone.
#9: Manage risks
There are many flavours and complexities of ERP. Know where the major pain points lie for your situation. The risks to the plan must be clearly defined and include an escalation plan. Are there technology risks? Are scarce skills required? Is there a migration path?
Many risks can be mitigated via thorough testing. Testing business cycles is, by nature, a long process. Be certain to have a fallback plan for each implementation milestone where there are risks to mitigate.
If the ERP system is for a small/medium size enterprise (SME) with little or no legacy systems integration, the task is less risky. However, if the replacement of a large, highly integrated, highly customised system is required, get ready for the unexpected. An ERP project should never begin without a clearly defined risk-management plan that has the sponsor's approval.
#10: Consider compliance
Because ERP systems are accounting/financial based, there are a number of areas to consider for audits and compliance. Sarbanes-Oxley is the primary act that regulates financial systems. Specific IT controls affect ERP systems implementations as well as the ongoing management of those systems.
This is a big topic, but suffice it to say that in Section 404 of the Sarbanes-Oxley act, compliance is measured by a set of controls that are likely to be on the external audit team's list. Any significant conversion, upgrade, or implementation of a financial system is fair game. The project "artefacts" must also be preserved as evidence of due diligence and adherence to the controls throughout the project. These include, but are not limited to, project plans, issues/risk logs, data conversion plans and results, and sign-off on significant financial reports.
Previous
Did you find this article useful?
210 out of 415 people found this useful
Digg
Slashdot
Del.ici.ous
Stumble
Reddit
