Avoiding poor planning in ERP implementation

When beginning a new ERP solution implementation, it’s likely that businesses will have a plan to enact a smooth transition. That includes changing hardware, training employees and managing current systems so operations can continue as normal. However, that plan is more important than most companies realize, because transferring to a new system with processes as complex as enterprise resource planning requires a significant amount of time and resources to complete. Poor planning can cause significant setbacks in how a manufacturer operates, slowing businesses down while delivering lower sales in the long term. It is best to learn how to avoid the blind spots that come with planning for such a solution in order to deliver an ideal result.

A lack of responsibility

According to many sources, including Software Think Tank, lack of proper planning constitutes the primary reason an ERP implementation fails. More often than not, the typical strategy in this situation is that companies will delegate the planning process to a lesser role or simply mitigating to focus on the changes that will occur during the transition. That includes forgetting to document all the new processes that employees have to utilize in their jobs, as well as testing the hardware to see if it actually functions on the factory floor as intended. This occurs especially when businesses lack experience with ERP.

A failure in commitment causes two major issues: One is the loss of interest, if not outright resistance to the implementation by stakeholders such as employees, middle management and investors. The other is an improper allocation of all the resources required to complete this major project. The former can slow or stop the installation mid-transition because these key players refuse to have anything to do with the project, while the latter can cause a catastrophic failure when the new system actually goes live.

Working out a strategy

Getting an ERP implementation to function requires working out a comprehensive plan that has the input of all the stakeholders. For one, CIO.com recommends a complete internal audit of all the processes, equipment and policies within the company to determine how a new ERP system can help with their situation. That way, the process of finding a solution is meant to fit with the context of the company in mind. An example of this can be found in parts manufacturing, where the supply chain involves working with material suppliers and process manufacturers. That requires establishing a strong warehouse inventory management system that takes into account both the materials and the completed goods.

As a consequence, the transition to new systems may mean using not just a specific form of ERP solution, but plugins for the solution – such as those used for Microsoft Dynamics NAV – to better suit a company’s needs. More importantly, though, the stakeholders should be involved in the decision-making throughout the entire process, from the internal audit and product selection, to working with solutions provider directly to creating the training processes and documentation that employees will learn from. Creating a holistic integration strategy that covers everything and everyone in the company will likely make the process seamless and deliver the intended results faster.

Learn how to define your ERP strategy by downloading the white paper entitled “ERP in Manufacturing: Defining the ERP Strategy” from the DMS website today.

MS Dynamics NAV Integration Services DMS provides full-spectrum Microsoft Dynamics NAV implementation services including: data migration, financial consulting, NAV business system integration, operational consulting, and full implementation support. DMS as well can customize the solutions to meet the unique requirements clients in any industry, although our expertise lies in building solutions for the manufacturing and distribution sectors.

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