Last week, I introduced you to using Milestone Deliverables - our firm's proprietary ERP project management methodology - to drive ERP implementation success. We covered the importance of ERP project planning, business process mapping and systems testing. In this post, I cover three additional key drivers of ERP implementation success:
Our firm developed the Milestone Deliverables ERP implementation project management methodology over a 33-year period. It is now used to deliver ERP success in more than 40 countries. This short series of articles is designed to introduce you to the key components of our methodology - the components that are necessary to drive ERP implementation success. This first article focuses on the importance of project planning, business process mapping and system testing.
If your organization is planning to implement ERP software without restructuring its operations, you can stop reading right now. In fact, you may as well take the money you're planning to spend on the project and throw it in the bin.
In its September 2011 issue, the Harvard Business Review (HBR) featured an article on IT project failures, Why Your IT Project May Be Riskier Than You Think. As an example of an IT project failure, the authors discuss how Levi-Strauss’ $5 million ERP project morphed into monstrous losses of $200 million.
The current economic climate is causing many organizations to rethink their ERP projects - whether selection, implementation or optimization. Many businesses are now hesitating because they're no longer sure that it's in their best interests to fund the projects or to divert precious human capital resources.
ERP selection is the first hurdle that has to be cleared on the path to ERP success.
Unfortunately, management all too frequently underestimates the complexity of the selection component. Too often, they approach selection with the view that it’s an administrative project that’s easily completed. This approach, unfortunately, couldn’t be more misguided.
If the last few years have taught us anything about business, it’s that the successful companies adapt to tempestuous market shifts. And, there have been plenty of recent events that have given companies opportunities to distinguish themselves in this regard: the Great Recession, a choppy recovery, Japanese supply shortages, rising Chinese labor costs and, now, a market correction.
Many companies running Infor Baan ERP software are reaching a crucial juncture. Do they upgrade to Infor's ERP LN software (now eloquently called Infor10 Enterprise (LN)) , stick with their current software or expand the search to include other vendors.