Why implementation Fails...
Enterprise Resources Planning (ERP) systems are large and complex IT products designed to support and help to manage virtually every area of a firm.
When companies begin looking at doing an ERP implementation, one of the first questions that needs to be answered after determining which application you will use, is what approach you will take to govern that ERP implementation. Although ERP technology is expected to deliver positive results once implemented, it is not the technology itself the “deliverer”, rather the results are delivered by processes executed by individuals who may or may not use the technology to carry their processes out, therefore the scope of the project must include a phase to define the “things” (processes) that the company must do extremely well to be successful. In other words, the implementation project must look at the world through the eyes of the company's essential processes and not just through the eyes of the ERP system practices and functionalities.
Although companies follows the processes , have defined set of policy and rules but they struggle to have successful implementation.
Following are the qualities that lack in a team which generally lead to extended delay or even failure in implementation:
- Lack of ownership: The most common reason a plan fails is lack of ownership. If people don’t have a stake and responsibility in the plan, it’ll be business as usual for all but a frustrated few.
- Lack of communication: The plan doesn’t get communicated to employees, and they don’t understand how they contribute.
- Out of the ordinary: The plan is treated as something separate and removed from the management process.
- An overwhelming plan: The goals and actions generated in the strategic planning session are too numerous because the team failed to make tough choices to eliminate non-critical actions. Employees don’t know where to begin.
- A meaningless plan: The vision, mission, and value statements are viewed as fluff and not supported by actions or don’t have employee buy-in.
- Annual strategy: Strategy is only discussed at yearly weekend retreats.
- Not considering implementation: Implementation isn’t discussed in the strategic planning process. The planning document is seen as an end in itself.
- No progress report: There’s no method to track progress, and the plan only measures what’s easy, not what’s important. No one feels any forward momentum.
- No accountability: Accountability and high visibility help drive change. This means that each measure, objective, data source, and initiative must have an owner.
- Lack of empowerment: Although accountability may provide strong motivation for improving performance, employees must also have the authority, responsibility, and tools necessary to impact relevant measures. Otherwise, they may resist involvement and ownership.
It’s easier to avoid pitfalls when they’re clearly identified.
The challenge of a successful implementation methodology is to implement a set of improved and re-aligned business processes supported by the ERP technology tool within defined timeline.There is set of process that need to followed to have successful implementation along with proper involvement of all stakeholder and service provider.
ERP Implementation Methodology
Ref: PMBOK, Google
Good One Mr. Nitin.. Nicely drafted!!!