When implemented effectively, an ERP selection project can be part of a planned approach to manage change within an organization thorough benchmarking of best practices for improved workflow.
After hundreds of effective selection and implementation projects in a range of vertical manufacturing industries, Ultra’s ERP consulting team draws upon proven tactics to effectively organize an ERP project:
In many cases our approach starts with a close look at Return on Investment (ROI). As an ERP project gets underway, we work with our clients so there is a shared understanding of the needs, the alternate solutions, the cost, and the quantifiable benefits of the solution.
Most ERP projects have a better chance of success when there is a clear understanding of the ROI of business processes improvements throughout the organization.
Set the ERP Project Priority
Once ROI becomes a driver, management must understand that an ERP project is a major undertaking which impacts the entire organization.
It is management’s job to prioritize the demands placed on the organization. An effective rule of thumb for the CEO is “if a new ERP system is not one of your top three priorities, delay it until it is”. If management clearly understands the return on investment, they will make it the top priority when ROI is at the top of the list.
When the priority is clear and supported by executive management, there’s a better chance for obtaining real-time business intelligence via a new ERP implementation.
Without setting a clear priority, the project is doomed to failure. Users perceive the project as something that is fuzzy in terms of organizational priority; users and department heads will not buy in and therefore will not feel the need to invest the time necessary to implement a large ERP system successfully.
Time Well Spent
Why take the time to work strategically, including setting ERP as a priority, when organizing your ERP project?
Simply put, an ERP project is a major endeavor for any company.
Its first year costs will exceed 1% to 3% of annual revenues. If done properly, the project return on investment can be three to five times costs. If done poorly, the company spends precious resources to implement a new system that does not meet expectation.
Setting the appropriate priority is just one step along the way to an effective ERP project.
Our team has gathered seven tried and true strategies for manufacturers to effectively manage an ERP selection project.
Download the free white paper “7 Steps to Effectively Organize an ERP Project” for a full look at this valuable information.