Insights 10 May 2022

7 Rules to Guarantee Successful ERP Implementation and Increase Competitiveness

Digital disruption is forcing most organizations to speed up their digital transformation to thrive in the digital era. However, there is the question as to how many organizations truly understand that successful digital transformation means not only the introduction of new technologies and innovations before the eyes of outsiders but also the upgrades of processes and the maximum use of each and every element of digital transformation which includes the back-office system that many organizations have like the enterprise resource planning (ERP) software which is vital to expected efficiency in technology adoption and management at organizations. ERP modernization is essential because it enables the real-time application of ERP and ensures its maximum use especially when the software handles in-depth information. This guarantees right and precise business decisions.

Although ERP is highly efficient and popular, many organizations have not fully used it and even suffered problems about its implementation and application because they have neither readiness nor knowledge to use ERP. Such organizations experience either delayed or failed ERP implementation and unfortunately lose considerable budgets and business opportunities. This is the reason why Bluebik introduces the 7 rules to guarantee the successful and efficient implementation of ERP.

  1. Business processes and operations must be final and clear before ERP implementation  

The main function of ERP is to support the business processes and operations of organizations. ERP is used directly for these two areas. They are direct factors behind the selection of ERP software and the design of ERP features. For the efficient use of ERP, an organization should clearly design its business processes and operations to prevent any change during ERP implementation. Otherwise, there could be considerable problems in the future including project delay, uncontrollable budgets, failure to meet business requirements and even the wrong use of ERP features.

  1. Organizations must select the ERP software that suits their business and is highly popular

There are so many ERP programs which vary, depending on their designs and objectives made by their developers. Therefore, organizations must set their clear and detailed purposes and requirements which will enable them to select the software that will perfectly serve their demand. The selected software should be popular and widely used because it will help cut maintenance costs in the long run and it will be easy to find a consultant to solve future problems.

  1. Quality must be a main criterion for the selection of an implementer

The selection of a system implementer is an important step before an organization can use ERP. Many organizations make a wrong decision in this step because they base their selection mainly on (low) costs and forget the truth that cheap things are not good especially when it comes to ERP implementation. It is widely known that payments for a consultant and a programmer form a main part of ERP implementation costs. Therefore, quotations clearly reflect the quality of work. Many organizations that make wrong selections suffer project delay and many other problems. Solutions to difficult and complicated ERP problems require considerable time and human resources and are thus inevitably costly. This is the reason why organizations should base their selection of system implementers on quality. Quality-oriented selection prevent future damage.

  1. An ad hoc team must be formed to work full-time with the selected implementer

The collection of business requirements that will be used as the bases for the designs of ERP to serve users’ demand is the most important step for ERP implementation. A system implementation firm will regularly meet users from departments to discuss their requirements during project implementation. This is to ensure smooth implementation and the maximum satisfaction of users. An organization should thus set up its ad hoc team that will communicate with departments swiftly and is ready to work full-time with a system implementer.

  1. System customization makes a convenient and effective ERP system

Popular ERP systems were mostly designed to facilitate overall business processes in a comprehensive and efficient manner. The designs of their user interface (UI) meet common standards and were not intended to support specific application because they were aimed to be compatible with a wide range of business activities. Consequently users at the operational level find that standard ERP systems do not satisfy their demand and are not user-friendly.

System customization can solve the problem but it needs the experts who have an excellent command of ERP. This is because system customization must not affect business process flows and the original control system of ERP. Above all, the customization must not damage the warranty of the software.

  1. An experienced project management office (PMO) is needed to avoid risks and damage

ERP implementation is complicated and time-consuming. Planning and management are crucial to the efficient and effective ERP implementation. Organizations should have the project management offices that are experienced particularly in ERP, especially the selected software, to reduce risks and possible damage and maximize efficiency in the project management.

  1. Change management can stimulate application

ERP application will drastically change business processes and operations and affect the work of staff. Although staff members have been trained to use ERP, initially some of them may not change the nature of their work. Change management can raise awareness and prepare staff to adapt to the changes of their work systems. Efficient change management helps guarantee successful transition to new work systems as expected.

Today’s investment in technologies and innovations provides the foundations for organizations’ future. Whether the investment is worthwhile depends on the ability of organizations to use the technologies and innovations. This underlines the need to avoid risks and prevent damage in every project of technology application because it paves the way for the expected growth of organizations.