Lean & Operational Excellence and Independent ERP Consultants

The internet is replete with web sites offering pre-configured sets of business requirements for use in ERP selection projects. The claim is that much time and effort can be saved by using such resources – in fact pre-configured requirements specifications tend to focus effort in the wrong areas. 

It seems reasonably straightforward: select and implement a new ERP system to replace those legacy systems that simply have to go. “ERP is a one-stop shop,” you’ve been told. “ERP will do everything you need.” But what about that system you’ve just read about that provides amazing functionality for one specific part of your operation and has features that could be invaluable to your business? Will ERP systems be able to provide the same depth of functionality? Maybe 100% ERP isn’t the answer? What should you do?

Having decided that a new ERP system is the right move for your organisation, the next step is to select a system. Despite the consolidation in the ERP market over the past ten years, there is still a wide variety of choice. Identifying the system and implementation partner that best suits your business and budget is a critical step towards a successful implementation. This requires a structured selection process carefully managed according to agreed principles. Avoiding failure in this process means steering clear of the “Seven Deadly Sins of ERP Selection”.           

When starting an ERP implementation, expected benefits are usually identified and used to justify the project spend – and then ignored during the implementation! Instead, the focus is on achieving budget and delivering the project on-time. This is a big mistake and broadening the focus can impact on the success of the project and ensure that the benefits are realised. 

For regulated industries such as those in the life sciences sector, computer systems need to be validated to prove regulatory compliance. When implementing Enterprise Resource Planning (ERP) systems, companies must make sure that their validation plans form an integral part of the overall implementation project plan.

In recent years we have seen much of the traditional manufacturing industries in Europe relocate to the lower cost economies such as those in Asia. Governments across Europe are looking to the Services sector to replace the jobs which are being lost. Leaders speak of the “Knowledge Economy” or the “Smart Economy” as the way forward. This Opinion considers how service companies can have sophisticated and effective IT systems with affordable total cost of ownership.

So, the big decision has been made. The company is going to purchase an ERP system. You have got the backing of the MD, the CFO and the majority of the Board (there is always one!). All you have to do is “install it”. There are no more big decisions and no need to keep bothering the executives with any more big decisions on this matter, Right? Actually, the process has just started and there are a multitude of big decisions to make and you will certainly need the support of the executives in one crucial choice: Do you change some or all of the business processes to accommodate the new software or do you modify the software to fit the existing company processes?

One of the criteria used for measuring ERP project implementation success is budget versus actual. Achieving this goal starts before the project does, with the creation of a thorough and realistic budget.   

The relationships between the drug manufacturers, distributors and end customers are complex and taken with some of the physical characteristics of the pharmaceutical value chain introduce a number of challenges for ERP systems.

When you built the business case for your new ERP system, it included a list of expected benefits. Now that the system is live, have those benefits been realised and have you achieved the expected return on investment?

Stories of disastrous ERP projects are enough to ensure sleepless nights for CEOs or CIOs looking at the prospect of implementing a new ERP system. So what should you do to ensure that your project is a success?

One of the critical success factors in ERP system selection is the insistence of the organisation on a focused demonstration of the ERP system prior to the evaluation of a preferred vendor.

Traditionally, companies looking for enterprise applications such as ERP have had to choose between bespoke systems (building the applications in-house) or buying commercial packages from software vendors.  Open source, potentially, offers a third alternative.

You’re planning to implement ERP, but how do you decide if you should introduce the new system in a ‘phased’ manner or go for the ‘big bang’ approach?

“It’s an insidious problem - there are still key users in place and they are still providing system knowledge and training. However, the pool of knowledge they are drawing from is getting smaller all the time.”

What is the price of making bad decisions when constructing an ERP team? And what can you do to improve the chances of making effective choices?

Some organisations, when faced with the need to implement new Enterprise Resource Planning (ERP) systems, have to decide between a packaged system and a bespoke development approach. What are the factors in making this decision?

You have analysed the proposed license and support costs, the number of implementation days and the consulting rates and feel confident that you can drive down cost and do a much better deal. You are doing everything right when it comes to contract negotiation, aren’t you? Well, yes and no.

‘Stakeholders’ are the individuals and groups which are, or are likely to be, impacted by the implementation of an ERP (Enterprise Resource Planning) project.  Monitoring stakeholder perception of the project is an important part in any successful ERP implementation – both as part of a risk management strategy and as a means of securing stakeholder support. What are the benefits of an effective stakeholder management process? And what are the key elements? 

One of the options to consider when developing an ERP strategy is Software as a Service or SaaS. Is SaaS a viable option?

Data Migration is a key part of any ERP project. Identifying and tackling tasks that can be addressed early improves the prospect of a smooth system cutover as well as the ability of the ERP to drive value in the business from the time it goes live.

Who makes the decision to choose an ERP System - the IT Department or the Finance Department?  How do you ensure the correct system is purchased that best suits the individual organisation?

The good news is the hard work has been done – you have implemented ERP! ERP has standardised your business processes and integrated your management functions. But has the system delivered on the promise of an enterprise view of information?