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More often than not, Enterprise Resource Planning or ERP is seen as a magic stick that can boost an organisations profitability. In reality, however, the success of an ERP solution depends on a number of factors that go beyond just the technology.
In fact, it would be good to remember that ERP is nothing but a tool that can help organisations plan their 3M resourcesman, machine and materialin an effective manner. Given this, the organisations top management should clearly understand what the solution means for the organisation.
To further ensure that the ERP is successfully rolled out, the enterprise needs to properly define the various functional procedures. There is also a need to set up a core team comprising the right set of decision makers and users. Besides, the IT manager should also seek answers to few questions before embarking on an ERP journey.
- What is the amount that the organisation is willing to invest?
- How will the company measure the return on investment (RoI)?
- Is the organisation agile enough to adapt the massive post-implementation culture?
- How equipped are the functional users to understand and utilise ERP?
- What is the organisations plan to train and educate employees how to use ERP?
Let me illustrate these through my experience of rolling out ERP at the DP Jindal Group. In fact, before going for ERP, we were working on a legacy system that was a combination of in-house developed software and standard software, integrated through intermediary codes.
When our management felt the need for a standard ERP, one of the first steps we took was to set up an ERP steering committee comprising heads of various functional departments. The team started by evaluating all existing solutions in the market.
Once the group shortlisted two ERP solutions for a final evaluation, it decided to map the strengths of the two solutions with the companys line of business. The group also sought references of similar implementations from both the companies.
While the core group was working towards finalising the vendor, it also looked at other aspectsfrom evaluating infrastructure and planning its upgrade, to documentation of various functional processes. And by the time the consulting team moved in, we were ready with our documentation, core team members for each functional department and even the ERP room!
Besides, we were also through with the majority of all required infrastructure worknetwork connectivity, server, systems upgrade and network design for our plant. This saved a lot of time and helped the consulting team speed up the roll out process.
Needless to say, today our ERP has come to a stage where all functional departments are tuned in and are able to work efficiently on it.
The author is IT Manager at DP Jindal Group
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