Essay Example on ERP implementation project is not simply running a software Application

ERP implementation project is not simply running a software application out of a box as it requires a highly complex implementation process It has its own unique methodology of implementation and follow up It requires time and other valuable resources before during and post implementation phases The complexity of ERP implementation is also depending on the type and size of the organization The technique and approach of ERP implementation for small organization with few functional departments is different from a big and multinational company with various departments and operational units The methodology applied for a private organization may be different from government public organizations The various factors that have been identified to contribute to the success or failure of an ERP implementation in different type and size of organizations are 1 Strategic or factors at the planning phase factors 2 Tactical or implementation phase factors and 3 Operational factors Strategic Factors are the most important factors right at the outset of the project These factors specify the need for a project mission for top management support and for a project schedule outlining individual actions steps for project implementation 

The following are the strategic factors Project management Perhaps the single most decisive element of ERP success or failure is the knowledge skills abilities and experience of the project manager Project manager is the one who is coordinating scheduling and monitoring the predefined activities to ensure that the stated objectives of the projects are achieved An ERP project manager must understand both the business and the technology An ERP project manager must understand the impact of the ERP implementation on the business and work with business managers to ensure a smooth transition from the as is to the to be business operating environment For this a project manager is one who is flexible disciplined quick learner a good decision maker experienced in ERP implementation business experience political clout good communication and can motivate project participants Top Management Support In most of the ERP implementations the full support and cooperation of top management is very critical It is the commitment of this group that can create a favourable environment for the implementation of ERP systems and attaining of desired results Mainly the top management s close follow up participation and assignment of all the required resources is very crucial in the success of ERP project Top management needs to publicly and explicitly identify the project as a top priority Project champion 

The other CSFs in ERP implementation is the assignment of an individual as a project champion with deep knowledge and sound experience in the operation of the organization leadership and effectively communicating the benefits of ERP with end users as well as the project team members Clear goals and objectives Due to the complex and highly integrated nature of the application most researchers suggest outlining and communication of clear goals and objectives as a key factor for the success of an ERP project In the first place putting clear goals and objectives that can guide the ongoing ERP implementation is very important There must be clear understanding among stakeholders why ERP is implemented the goals objectives expectations and deliverables Business plan and Vision Before the actual implementation of an ERP Project it is important to have a clear vision goal and business plan Successful ERP implementation requires a complete project plan schedule close monitoring and controlling of 24 time and costs With this a clear vision and goal of the project will help the project team to focus on key issues to be targeted and define the success and failure criteria Tactical Factors are those key issues that must be considered during the implementation phase of the project including continues top management support decision making process business process reengineering inter agency communication team composition change management vendor support and user involvement in the project and their motivation Team Composition An ERP implementation team is comprised of technical and functional IT consultants top management business experts ERP vendor end users management consultants and hardware vendors The size and composition of this team in an ERP implementation project is a critical factor for the success of the project Active participation and commitment of team members is an important factor to the project success Good coordination and communication between project implementation partners are essential 

The coordination of ERP project participants is a critical factor to achieve process efficiency User involvement and motivation User involvement refers to the psychological readiness of the user to be involved in the initial definition of the ERP system needs and participation at the implementation phases It helps to define system functional and design requirements which guarantee the delivery of the system that will meet user needs and expectations User participating starting need assessment through the transition to production will help them better understand the project s consequences and contribute to the success of the project Business Process Reengineering BPR Regardless of size or type of system no universal ERP system that is suitable for all types of organizations During ERP implementation an organization always challenged whether it has to modify or replace some of its business processes BPR forces the company to redefine and design work flows to fit the new ERP system Success in ERP implementation can be obtained by modifying some of the existing business processes and adopting the new according to the logic proposed by the system so that the application customization can be minimized