Success factors for ERP Implementation (Microsoft Dynamics AX)
- May 28, 2014
- Posted by: cemblog
- Category: ERP implementation
Do you know selecting an adept software vendor alone does not assure an efficient and successful ERP implementation? For many organizations, the ERP implementation stage is more tedious and daunting than the selection process. This is evident from the numerous industry press releases explaining massive ERP implementation failures faced by even prominent global organizations, resulting in huge loss to the investment made and alteration in the bottom line as well. With these corroborations, it is no wonder that the organizations are frantic to move forward and implement an ERP.
Researches have been made to analyze the core causes of these failures and certain success factors are formed to ensure success in every ERP implementation. The fact is that, the organization where the ERP solution is getting implemented is equally important as that of the software vendor that is implementing the ERP like Microsoft Dynamics AX ERP Implementation Systems. Below are few of the tested Success Factors for your ERP implementation to be successful.
Clear Definition of the Scope of Project and Top Management Support:
Make the top management people of your organization aware of the implementation process and engage them in activities throughout the implementation. Explain the scope, budget and outcome of the project, so that they actively involve themselves in approving necessary resources, motivating the project management people and in making decisions during tough situation especially when the employees do not cooperate in the implementation.
The scope of the project should be well defined before the implementation begins. Modifications made to the scope or additional customizations of the software during implementation will lead to confusions for both the software vendor and the employees in your organization. This will result in changes in the budget, cost overruns and thus influencing the success of the project.
Perfect Management of Organizational Changes:
Implementation of Enterprise Resource Planning solution is liable to make changes in the organization. Researches have shown that the success of an ERP implementation is directly proportional to the organization’s persistence to undergo changes. Numerous changes ensue during the implementation process and most of the ERP implementation failures are the results of ignorance of these changes happening in the organizational environment.
A report can be maintained to track the changes happening in the organizational habits and processes, so that it will be easier for future references. The issues associated with these changes should be properly addressed time to time to avoid confusions or interruptions in the process flow.
Reorganization of Processes and Operations:
No ERP solution will be perfect and universally applicable for all the organizational needs. Almost in every ERP implementation project, there will be a case where you have to decide whether to modify the organizational processes according to the logistics of ERP or to modify the ERP to be compatible with the Organizational processes. It is better to modify the organizational processes according to the logistics of ERP so that the whole benefits of the ERP implementation can be obtained.
Co-operation of Employees:
Since an ERP implementation is sure to bring about numerous changes in the business processes and methods followed, it is must have the cooperation of all employees involved in every business segment of the organization. Cooperation of employees and communication between them are the significant success factors for an ERP implementation.
Timely Training to the Employees and Knowledge Transfer:
Absence of training employees with the new system being implemented will result in a massive failure of the ERP solution. The employees who are accountable to work and whose work are associated with the new system should be trained and explained about the changes in the pattern of their work.
The knowledge transfer happening between the software vendor and the employees play a key role in not only making the implementation of ERP successful, but also in extracting benefits of the ERP solution.
User Procedure Documentation:
The employees will be in need of some information and procedures on how to deal with the new system when they start working with it. Respected managers are liable to coordinate with technical consultants and prepare user procedure documents, so that it serves the need of the employees who are learning the system. Without proper resources to gain knowledge about the system, the implemented ERP will be a failure.
The system testing procedure should not only deal with finding if the software works fine, but the actual testing should have a keen eye for analyzing if the software meets the needs and requirements of the business. Many organizations will tend to cut down cost in the testing phase of the implementation cycle due to cost overrun during the initial stages of implementation. But this is not the right practice.
Analyzing the system with 4 popular cycles of testing, including pilot test, iterative test, performance series, and mock-go-live will be perfect to gain a successful ERP implementation.