For any project to be successful, it requires a leader, and an ERP implementation is no different. Projects involve people who take on roles, responsibilities, tasks, and decisions. They are a true team, and everyone’s actions (or inactions) affect the team and project. The ERP Project Manager (or ERP Implementation Manager) is the leader of this team, and is ultimately responsible for the success or failure of the implementation.
Implementing a new enterprise resource planning (ERP) system can be a humbling challenge for any company. Four critical factors will determine the success of your new ERP implementation:
A cloud ERP implementation requires the same elements as an on-premise implementation from a methodology perspective, but not from a technical perspective. The difference lies in the level of responsibility.
When companies are looking for a new ERP or reimplementing a system, they start with a budget. That budget typically includes standard implementation costs and estimates on service hours from vendors. But those vendor quotes are almost never inclusive of everything. While not hidden, these unexpected costs can be high enough that the budget is at risk.
ERP data migration is a big step in the implementation process that is critical to get right. The ERP system will not function at optimal levels otherwise. Smaller start-up companies typically have less data to convert than larger businesses that have been around for decades, but data migration takes place in all implementations. So, what is it? In simple terms, it is getting the information out of the old system and putting it in the new system.
Implementations are not something a business does all the time, so most tend to look for a consulting group like Visual South to guide them. We have been implementing companies across the country since the early 90s to help them address multiple business needs. Over the decades, we have developed an implementation process that is methodical, thorough, and has consistently proven to be successful. Here are some of the ERP implementation services we offer and why we think they play a big role in the overarching plan.
I’ve been involved with manufacturing and ERP for over 30 years. During that time, I’ve learned a lot about the interaction between a manufacturing organization, their goals, and their ERP (or lack thereof). I’ve seen companies who have a good plan for choosing ERP; I’ve seen companies that don’t. I’ve seen companies that use ERP well; I’ve seen companies that don’t. I’ve seen companies admit they weren’t using ERP well and then work towards fixing that problem. I’ve seen companies admit they weren’t using ERP well and then lose interest in using it better. I’ve also seen a common thread between the companies who excel in selecting/using ERP, and those that don’t. The ones who excel have the expertise to develop a good strategy and execute it, or they admit they don’t have the expertise and they get help. They view the cost of getting help as an investment that has a payback. The ones who don’t excel aren’t aware they don’t have the expertise, so they never get the help they need. They view the cost of getting help as an expense.
Visual South has implemented countless companies on a new ERP. If we look through the lens of an ERP implementation—meaning a company is leaving a legacy system or systems, and migrating to a completely new ERP—testing is when we make sure we are comfortable with how everything has been set up. Testing in ERP implementation reduces the risk of discovering misalignment or problems AFTER go live. We want to unearth and solve as many problems as possible BEFORE go live. If testing reveals the ERP has been set up correctly, then it will be able to support the new procedures and processes once it is live.
Buying ERP is a big deal. I know because I’ve done it. I was a Plant Manager in the mid-90s, and we were running production with a homegrown system that could not be modified because we didn’t have the source code. It was better than nothing, but not by much. We were not managing our capacity, our scheduling consisted of pushing product through the plant day in and day out. It was exhausting, and our on-time delivery range fluctuated from OK to bad. The results we got did not reflect the work we put into it.
Creating an ERP implementation timeline can be a difficult process. There is no standard template that will magically fit all projects, as every one is unique. No two businesses, even in the exact same industrial segment, are alike. Each has a different scope, team, and availability. However, what’s typically the same for just about all small to medium-sized ERP implementations are the core phases and tasks to get from purchasing your new solution, to going live with it, and beyond. This blog will discuss Visual South’s methodology for an ERP implementation project plan.
