One main reason for failure of most ERP implementations is the misfit between business requirents and ERP system business process be reduced. How can the misfit between business requirents and ERP system business process be reduced?
Use the ERP system that correspond to your business objectives and clearly is understood by the operators or personnel of the entity. Be up-to-date with the ERP systems and be sure to switch when necessary. The business environment is very unpredictable nowadays, hence, it's very essential to stay up-to-date.
Unless a current-state business process brings a strategic competitive advantage to the company (beyond "we have always done it this way"), modify the system to fit, else implement the business process defined in the new ERP. Most ERP systems are purchased with an eye on updated processes and features, yet they are oft implemented to mimic current-state processes designed around an ill-fitting system.
An ERP system cannot work miracles if it is not designed to business requirements and user satisfaction. Hence, first define the business requirements and processes rigourously and bring to the fore the key determinants to design and develop the ERP. Also dont forget to include user perspectives for eas of use and satisfaction, because even the best systems can fail if it is not easily usable or user friendly. You can see a paper on ERP user satisfaction i co authored on my profile. Thanks.
Lessa,
In my experience, there must be a clear business objective of why ERP is being implemented in the first place in terms of financial and non-financial benefits. They need to drive the implementation.
In terms of your question "misfit between business requirements and ERP system business process be reduced" my solutions are as following
> prioritize the business outcomes that the organization wanted to achieve
> avoid planning for exceptions rather adapt to the out of box functionality
> change process, do not change ERP implementation to suit the needs
> Implement chargebacks to departments for the ERP implementation Project
> Report the OKRs (Objective Key Results) envisaged and realized for 3-4 years
> Implement ERP solutions in an incremental manner and reduce implementation cycle time to a month/two instead of 6months or 12 months
> Choose SaaS-based solutions instead of traditional ERPs based on needs
Hope this helps.
Change management and continuous improvement. If we do not provide legitimate feedback systems and supervision and refinement process for ERP, we cannot improve. We are great at conceptualizing strategic initiatives and finding the next great tech on the market - but miserably fail at operationalizing and refining after making a decision (Like contracting with SAP, Oracle, AWS, etc). Listen to the employee's feedback on if an ERP system works, ensure that in the program management lifecycle - managers identify the need for an out on large contracts with software's that haven't been proven to be effective for their organization. Every minute, hour, day, and year you spend using inefficient systems is millions of dollars of revenue you are losing as a company while you are mistakenly focusing your efforts on lesser facets of areas to improve performance in. (I'm an operations manager, and former military officer). This question ties into a philosophical debate of how leaders should be engaging and influencing in their organizations. Change Drivers vs Preservation Upholders. Change Drivers are the only types of leaders who can propel an organization from "Good to Great".
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