31
Aug 2015
0

Why IT Shouldn’t Lead Your ERP Implementation

Does It Make Sense For IT To Own Your ERP Project? Would you let your IT team lead

Why IT Shouldn’t Lead Your ERP Implementation

Helpful Tips , , , , , robc

Does It Make Sense For IT To Own Your ERP Project?

Would you let your IT team lead your company’s next marketing campaign?  Would you let your IT team lead the installation and setup of your newest production machinery?  The answer is no. That’s because IT has little responsibility for increased sales or increased production. If that’s the case, then why are IT teams often placed in charge of leading the implementation of a business application that needs to be integrated into the processes of your company? An important question to ask yourself is: does it make sense for It to own my ERP project?

Why is it that most companies immediately assume it’s IT’s responsibility? Is it because it is software and IT is responsible for all software?  Is it because the application must be installed on a server or must be hosted at a remote location?  Is it because the application must be installed on user’s desktops or configured to connect to the internet?  Is it because they have the most available time to lead the implementation?  Even if all that is true, the fact remains that ERP is a business application and not an IT application.

Too often a company purchases an ERP application, expecting big returns and then place the success of the implementation in the hands of the IT team.  Too often, this assignment leaves the company ultimately frustrated with the results of the implementation.

an image of an IT professional frustrated with an ERP project

Why IT Shouldn’t Own Your ERP Project

There is a reason you are implementing new software and it is likely because your current software is not capable of doing the business processes your company currently performs.  Do not make the mistake of believing that the software will be installed and set up to work as your current ERP application.  The most successful ERP implementations are the result of hard work by a strong team of company leaders that span all of the company’s departments and have responsibility for the final results of the implementation.   That team-first must understand the current business processes and current company needs.  Next, the team learns how the new application performs business processes.  The team must then determine the gaps between existing processes and the functionality of the application to design a plan to overcome the gaps.  Afterward, they construct the new business processes and the manner in which they are accomplished in the new application.  Lastly, only after all business units have properly validated the application performance with company data is the application deployed.

In order to achieve a successful implementation of your ERP application, IT will be heavily involved in the rollout of the application and today many IT professionals have a very a strong understanding of the processes their company is seeking to achieve.  But the responsibility of the success of the implementation should be placed with a company leader that has the best project management skills, the greatest understanding of the company’s processes, and has a significant stake in the results of the implementation.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.

19
Aug 2015
0
an image of making the transition to ERP

The Big Change

Where To Begin With the Transition To ERP Few things strike fear deeper into the hearts of people

The Big Change

Encompass Solutions , , , David Cranshaw

Where To Begin With the Transition To ERP

Few things strike fear deeper into the hearts of people more than change. It doesn’t matter if they know the change will be good—“This system has never worked for us and a new, better one will improve our business,”—or bad—“We need to expand beyond our current system and it’s going to be very expensive and time-consuming.”—it’s still just changing. That means the whisper of the unknown growing louder and louder into a yell of “STOP!” Here’s what you can do to prepare for the transition to ERP.

Of course, the rest of the world isn’t stopping, no matter how loudly you ask it to. Your growing need to expand or improve will only keep you behind the rest of your industry if you don’t get to changing and leaving your legacy system behind. You can’t do too much planning or preparation before the transition, so the sooner you start the smoother your change will be. Here’s a general idea of what you can look forward to.

an image of making the transition to ERP

Examine Needs and Appropriate Software

First things first, ask yourself is the transition to ERP appropriate for you? The larger and more intricate a company is will increase the need for the cohesive organization and company-wide integration. Alternatively, a smaller company may do just fine with standard office software combined with strict processes and organization. Since you’re reading this on our website, we’re guessing you’re going beyond simple and have kicked around the idea of a transition to ERP territory. While we stand by Epicor as a flexible and robust system that can become a tool for any company, you owe it to your company to consider all options available (before you come back to us, of course).

Get Everyone on Board

Many business decisions are unilateral, but when it comes to the software that every one of your employees will be using every day, all day, you’re going to need their opinions. You’ll also need the backing of all of the shareholders as well, and to be blunt, the relationship between the software vendor and the people paying for its implementation can be quite rocky. Many of these partnerships are mediated by a third party project manager, and they can help the shareholders understand the scale of implementation—which can be expensive and take years to complete—and the software developers understand the specific needs of the company, often through employee feedback which a third party can keep anonymous.

Define Goals and Channels of Communication

Now that everyone is ready to move forward, it is time to define exactly where everyone will be moving to and when they should be there. The software vendor will need to work with the company on tempering realistic dates and achievable goals, and the company will need to work with the software vendor on providing information and process transparency, as well as ensuring employees are receptive and ready to be trained. Establishing clear avenues of communication between the project management, the company executives, employees, software vendor, and engineers are of paramount importance.

Expect Chaos

Everyone will be putting forth their best efforts to be clear and concise, to meet deadlines and goals. And despite everyone’s intentions and efforts, things will probably go wrong. It’s stressful and upsetting and the urge to point fingers and yell is going to grow, but it’s important to maintain some perspective: your company is being taken apart and put back together and when it’s over, it won’t look or work the same. It’s a major invasive surgery, it’s a complete overhaul. Be prepared to roll with the punches: the pain won’t last long!

Eliminate all Aspects of the Legacy

No matter how well a preexisting system might have worked beforehand, it has no place in a brand-new ERP system. Information needs to be transferred or archived and every aspect of its usability needs to be transferred to the new system. Having an old system remaining open or employees creating informal workarounds defeats the purpose of an ERP. The solution to any problem should never be having redundant systems, duplicating data entry, or wasting time reconciling the two differing systems. The company needs to make sure all employees are ready for the transition and have hopefully been listening to employee input so that the form and function of the system work for them.

Training, Responsibility, and Refinement

As the system creation and installation draws to a close, the team should look back on their progress and realize how far they’ve come in building and implementing the new system. If everyone has done their part they should feel a sense of ownership in the ERP system and this positive feeling will aid in the training and maintaining of the new system. This extends to the software vendor and the engineers as well, who will be providing a lifetime of IT support and will be aiding in the modification and refinement of systems in the future. Like any system, your ERP will work for you right out of the gate but as it is used over the months, your company will discover the parts that work better than others and processes that can be made more efficient with tweaking.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.