Is it complicated to successfully implement anERP? Part One
- By Spandan Adhikary
An expert’s take
Profusion of various ERP software indicates that these software have become a commodity in the world of business. There are so many different varieties of ERP software, ranking different on different parameters, that they have come to serve various needs and landscapes of business. But the burning question is
Why is it so difficult to implement and get ROI from decades old and reliable software?
The answer is general in nature and will be different for different organization/situation. But the most cited critical success factors mentioned in various case studies and literature is shown below:
Source: Ahmad A. Rabbai(2013)
This article will talk about the second most cited reason ‘CHANGE MANAGEMENT’ because, in my career of 7 years, post-implementation of ERP projects, I have consistently come across clients stating that they should have focused more(financially and consciously) on change management. I have implemented those change management and know the nuances.
All of the following suggestions are a result of my experience and logic. The following points are often overlooked and will help to get the best ROI in shortest period?
So let’s focus what SIMPLE things we can do to extract the best out of any ERP implementation:
The same old training…No, Not Really !!!!
You will come back and say that we have given enough and comprehensive training to our people, but at the end of the day, they don’t seem to be effective. In 1885, German psychologist Herman Ebbinghaus conducted a landmark study and coined the term "forgetting curve."1 He found that when people are exposed to an idea one time, after 30 days, they retain only about 20% of what they learned. That explains why so much training doesn't stick, and why companies are throwing a staggering amount of money down the drain on ERP training. Also, sometimes introducing a new system (example planning and scheduling) would need prior primer knowledge of the same. Lacking this will negatively affect the training’s retention.
In the next coming article, I will give you my solution on the problems. We will again discuss few more as well.
Please let me know what you think about the point I discussed here.