Most companies pick a new ERP system every 10 to 15 years.  It becomes one of the most critical and strategic decisions that companies make in the life of the organization.  Many Companies put a great deal of effort into selecting the proper system and then think their jobs are done.  This is never the case.  A properly implemented system will pay benefits to the organization for many years to come.  An improperly implemented system can become the bane of the organization.

I’ve been working on system implementations for over 20 years.  Some of the implementations were done while I was the Controller or CFO of the implementing company and some are as an implementation consultant.  I’ve done implementations that were completed in record time (right at two weeks from purchase to first MRP run) and implementations that have languished or not completed at all.  There are ingredients that make the implementations successful and others that make them fail.

System Selection

Many organizations spend months evaluating systems and going through the selection process.  Others will look at a single system and trust that the system they are being shown will work for their organization.  There is no correct method for system selection other than to check references for the system and the implementing staff that will work on your project.  If you don’t check references then you really haven’t done your job.

Software companies and their staff are in the business of selling software.  If it happens to work for the purchasing organization all the better, but the goal and their compensation is based on selling software.  Would they purposely sell software that isn't a fit?  No.  They make assumptions about how your organization operates and they know their software.  They don't know your business and it's unique processes.

The implementation staff, be it from a partner organization or direct staff, are tasked with implementing what has been sold to the best of their ability.  If the software isn't a good fit, they'll make the best of it, but the job is to implement the software that was sold to the customer.

Management Commitment

The primary ingredient for success can be summed up as management commitment to the project.   Organizations are busy places, some much busier than others, but there are always demands placed on the organization.  In any implementation upper management of the organization must be involved in the process.  If they aren’t then resources necessary for success may not be allocated properly or may not be available at all. 

A typical implementation of an ERP system will disrupt an organization.  The level of disruption is directly proportional to the amount of resources that have been allocated to the implementation.   In my experience I’ve had projects that have seen very little disruption and ones that have brought the implementing company to its knees.  The smooth implementations are the most enjoyable and most rewarding.  Once again management commitment to the project plays a huge role in the level of disruption. 

Who’s project is it

If an organization goes through the effort and expense of purchasing a new ERP system then it’s important to remember that there has been a major commitment by the organization toward the implementation.  The organization needs to take ownership of the project.  If they don’t do this then the project will not be a success.  There are several ways to take ownership.  One is for the organization to make sure the resources are available necessary to ensure that the organization will not suffer during the implementation process.  This could be through the addition of resources necessary to complete the task at hand.  It could also be through the purchase of services from the software company or partner in excess of those provided for the basic implementation of the software.  It’s very important to remember that the project to implement your organization is your project and your future.  The resources provided by the software company will usually make the basic assumption that organizations know this.  The unfortunate aspect is that most organizations don’t realize the level of commitment necessary for a successful implementation until after the purchase has been completed.  The implementation consultants on a project are just that, consultants.  At the end of the project they move on to the next project.  They would like to have every project be a success but reality is that there are times when an organization has not taken ownership of their project.  If the organization doesn’t take ownership the project will most likely lead to a high level of disruption at “go live” or may never reach that point.