One of the more common projects espi is engaged in with businesses is the evaluation, selection and implementation of business information systems. Enterprise Resource Planning (ERP) systems are one example of a business information systems and are strategic investments for businesses. ERP systems can be the foundation for significant improvement in how a business operates and grows.
However, if implementation is not carefully planned, the potential risks could outweigh the benefits. There are plenty of horror stories of ERP implementations gone wrong. Several surveys of business executives reveal the following issues:
- 51% considered their ERP implementation project as unsuccessful
- 40% of implementations failed to achieve their business objectives within one year of going live
- Poorly managed implementations averaged 25% to 50% cost overruns
(Sources-Conference Board Survey, Robbins-Gioa Survey)How do you ensure that this doesn't happen to you? It's simple, follow these 10 key success factors and you are on your way to having a successful implementation.
1. MANAGEMENT COMMITMENT
What it means:
Support, resources and leadership at the highest level of the company.
Without it, failure isn’t just a matter of time – Implementation is basically
dead before it’s ever begun.
Why it matters: A successful implementation needs the
leadership of the management team to realize the desired benefits and manage the
Total Cost of Ownership (TCO). They need to understand how the system will
affect the enterprise as a whole and champion the implementation. Management’s
commitment is also pivotal in breaking down any functional silos within the
company, setting priorities for business transformation, and empowering the
implementation team to drive the process. Leadership should not only provide the
financial and resource commitment for the immediate needs but also for the
on-going support, enhancement, and business transformation efforts.
Join us next week for #2 BENEFIT REALIZATION
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