Why is Effective ERP Project Organization Critical to Success?
As an independent ERP consulting firm, the topic of ERP project organization comes up often as manufacturing and distribution teams look to Ultra to understand the best way to work through enterprise system evaluation and selection to improve key processes.
The topic of ERP project organization was also front and center as a finding of a recent ERP implementation survey.
Researchers from Mint Jutras conducted a survey of several hundred manufacturers and distributors for Ultra Consultants, focusing on the success of their ERP implementations in terms of schedule, cost and return on investment (ROI).
The survey reviewed goals and expectations, whether or not they were achieved, and why.
Survey respondents included companies ranging in size from $25 million to multi-billion dollars in annual revenues, and from recent implementations, as well as those that were more mature.
One of the more interesting findings from “The Real Facts about ERP Implementations” was that ERP project success has to do with people and process. And a key success factor was related to effective ERP project organization.
Looking deeper, nearly half the respondents said their ERP project was successful due to effective ERP project organization
ERP Project Organization is Key For Success
We’ve looked at this topic in past blog posts. For instance, a post on ERP readiness outlined the key steps needed when managing an effective project.
Each business and project environment we encounter is of course unique and therefore presents equally unique circumstances. However, an effective project is built in the foundation of readiness. Readiness questions include:
- Is there adequate executive support for the project?
- Are the proper metrics need to be in place to measure the progress and performance of your project?
- What about an ERP project charter? Is there one developed, and is it shared amongst all stakeholders?
- Is there a strong ERP project management plan in place, which is an influential factor in separating the successful projects from the unsuccessful ones.
- Is it clear how the project will be structured, from your executives to your site teams.
- Do you have the right business processes in place? As part of ERP process improvement services, we know that focusing on business process improvement is key to success.
- Is there a well-defined data conversion strategy and set of requirements, and align data to key performance indicators (KPIs).
- What about project governance? A proper project governance model will determine the route by which your issues and concerns are escalated and decisions are made.
When it comes to ERP project organization, it’s important to look internally and evaluate the level of ERP readiness among your ERP project team and throughout your company.
The role of an ERP consultant adds some clarity in this effort, which will help drive overall project success.
Learn More about ERP Project Organization
We’ve touched on just a few issues of note when it comes to effectively organizing an ERP project. But there’s more to learn!
- For a deeper look at the steps to take to effectively organize an enterprise technology project, download the white paper “7 Steps to Effectively Organize Your ERP Project.”
- See additional resources for ERP education to get further insight.
- Looking to work more effectively when it comes to your ERP project? Contact Ultra for the best way to get started.
7 Steps to Effectively Organize an ERP Project
The 7 Steps to Effectively Organize an ERP Project is designed for ERP project teams from today’s forward-thinking manufacturing and distribution organizations.
- Read tried and true strategies for manufacturers to effectively manage an ERP selection project. See what it takes to be successful and more with this Download.
Jeff is the founder of Ultra Consultants, a well-known voice in the ERP consulting industry and an expert on ERP solutions for discrete and process manufacturers. Over the last 40-plus years, his companies have helped more than 2,000 organizations improve their business processes, select ERP software and implement advanced solutions.