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Key Factors in Decision-Making for Implementing an ERP

Key Factors in Decision-Making for Implementing an ERP. Manager analysing ERP on screen AR, connexions, BI, RH, CRM

Regardless of your business field, implementing an ERP is essential to optimize your operations. Generally, providers offer various modules that cover all organizational activities.

If ERP is a new concept for you, check out this article “What is an ERP system?” In summary, ERP is an integrated management software package that centralizes the information that is crucial to achieving your objectives. The software also facilitates the satisfaction and loyalty of your customers.

Several factors can define the success of the deployment of your ERP project, but certain preliminary principles also deserve your attention. Let’s see the preparation steps for implementation and then see the success factors.

Preparation for the implementation of a new ERP

Step #1: Set Goals

Implementing an ERP has many advantages. To select the best solution, identifying your objectives is essential.

Ask yourself the following questions:

  • Has my current management software reached its limits?
  • What are the management issues that hinder the development of the company?
  • What do you expect from the future ERP software, regarding the achievement of your goals?
  • Does my software keep pace with the company’s growth?
  • How many management tools are used?
  • How does the operation between the different services take place?
  • Should the processes be further streamlined?

These questions will be of great help in choosing the ERP solution. With these elements, you will be able to make the project plan according to the priorities.

Step #2: criteria to follow in the integration process

You must consider these criteria before entering the implantation phase.

  • Management process analysis

This analysis aims to fully understand how the current organizational processes work. It also includes the analysis of the information systems currently in place. It is an essential step to the integration of the new management software.

  • Process reengineering

As the ERP centralizes all information and operations, you may have to optimally reconfigure the current processes before starting the implementation.

  • Convert your data

This step is probably the most complex of the implementation. However, it is of high importance. Find out the status of your data before starting the process. Also, select the data to convert, some may be outdated.

Key factors for a successful ERP integration project

Factor #1: Project Team

Building a project team is inevitably the first success factor. You need to select your most versatile employees and think about the hours they will have to devote to it.

Ideally, compose a team of 2 to 3 members. A smaller team is better, no matter the size of your business. Also designate a team leader. The role of each actor must be perfectly defined to limit slowdowns.‍

The ideal team also brings together members from different hierarchical levels. Combine the different skills. This strategy will ensure that the needs of each area of ​​the organization are met.

Factor #2: Define Goals

By determining objectives that follow your organizational vision, the integrated management software chosen will perfectly suit your needs. These must be realistic and measurable.

To ensure success, communicate goals within the team. This way, you can ensure that each decision is aligned with the established objectives.

Factor #3: Training

The ultimate obstacle to the success of ERP implementation is your employee’s adaptation to the new solution. Implementing an ERP system requires ongoing training.

In a culture of change management, two elements are considered essential for the successful implementation of ERP:

  • Training
  • The involvement of the general management

It is important that the implementation project becomes the project of the entire company, from managers to operational staff.

In conclusion

It is essential to choose a solution adapted to your needs. For training, choose a supplier who is involved and available. The involvement of the whole company is necessary. Good preparation and alignment of objectives remain inevitable for the success of your project.


Source:

Dumitru, Valentin & Vasile, Florescu. (2008). L’Implantation de L’ERP : Facteurs clés du succès et impacte sur la performance. Annals of the Faculty of Economics. 4. 1353–1357.

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