Guidelines for Successful ERP Implementation at any Organisation

Business Requirements

Organisation should create very clear business requirements documents across all functions. Business process flows (using MS Visio) should be part of every requirement document that is shared with the ERP software vendor. Every process step and the associated responsible function or resource should be displayed in clear swim-lanes in the process flow. The order of the steps in the process should also be included. This will avoid scope creep during the project execution and complete the project within planned time & budget.

Minimum Customisation

Customisation means writing new codes (scripts, programs, class files) within the existing ERP software to meet the business requirements. Clients should ensure that the ERP service provider should provide an IT solution with zero customisation to a major functionality of the ERP tool. Customisation should be accepted only for –

1.   Integrations (data connections within various functions)
2. Creating reports, forms as per business needs (adding logo on purchase order print, creating forms as per client specifications).

Clients should consider amending the business process to align with standard functionality of ERP tools rather than developing complex customisations. This will keep the cost of ERP low during implementation as well as in the long term.

‘ASIS vs TOBE’ and GAPs

ASIS and TOBE documents are essential before starting any ERP implementation. ASIS document consists of existing business processes. TOBE consists of the planned scope of the ERP implementation project. GAP documents mention the change in existing ASIS to accommodate the ERP standard processes. Organisation should be flexible to update existing ASIS processes to adopt the industry standard best practices. The TOBE document can also be converted to the ‘Solution design document’ (also called blue prints). This will form the basis for Scope of ERP implementation project. The IT vendor is accountable to provide the ASIS, TOBE & Solution design document. Project milestones and payment structure should be agreed based on scope arising from the Solution design document.

Implementation Roadmap

ERP implementation is generally done for all functions of business. Requirements will typically cover all processes across all functions, multiple reports, forms, integrations along with automated alerts in the form of emails, SMS. Hence, it is very important for clients to create a roadmap based on the priority of business operations needs. Typical low priority items like integrations, automated alerts, or ‘some functions all together as a whole’ can be kept in later phases. It is important that the ERP vendor provides delivery / implementation in a phased manner and does not plan for a big-bang go live. This will increase the chances of successful ERP implementation and also ensure that users get confidence in phase wise manner.

Internal IT Support Team

Implementation projects should be handled as time bound close ended activity. Organisation should develop an internal IT support team that will take over all support activities from ERP vendors. Organisation’s internal IT team should be empowered enough to support daily business issues arising from the ERP module. External vendors can support technical bug fixing & enhancements. All access to external vendor consultants should be relinquished after project phase completion. There should not be a dependency on the vendor to handle daily transactions of clients after project completion. This will make sure that the organisation does not become hostage of the external ERP vendor and lose money in the long term on support services.Budget

Organisation management should clearly define the budget available for IT projects. ERP implementation consumes considerable cost and generally overruns due to scope creep. Operational cost of ERP support & planned enhancements should also be considered in initial budget definition. Client should have a clear mechanism to define and track the following budget parameters –

1. ERP implementation cost with additional buffer for scope creep

2. Monthly IT support cost along with a buffer for planned/ unplanned business enhancements that will arise in the upcoming 2 years after project completion.

 Vendor Eligibility

Organisation should define the vendor eligibility criteria based on various parameters like legal checks, years of experience, number of resources, onsite availability of key resources, past implementations, client feedbacks, readiness and adoptability of vendor’s ERP tool to latest digital trends. A scorecard should be created to compare the scores of various vendors against each capability. Vendors with maximum score can be considered for implementation projects.

                                                                       Author – Sarang Khadilkar

                                              Designated Partner, ITRS- Rushing Ships LLP, Thane

                                                            sarang.khadilkar@rushingships.com