Here are some recommendations if you find your business afflicted with ERP-itis.
Don’t Panic: Over-reacting and impulsively commanding the team to immediately replace the ERP system can lead to poor decision-making with long term implications and costs.
Get a Specialty Diagnosis: Get expert help. Let the expert run an objective diagnosis before writing yourself a prescription or commencing your own treatment and therapy. Specialists know things you don’t. They typically have experience of a wide array of ERP situations. Along the way they have learned what to look for beneath the symptoms to find root causes. They know what to do and what not to do. Trying to fix the wrong things may exacerbate the problems.
Don’t Build It Yourself: Don’t believe that to achieve a perfect ERP system it must be designed and programmed by your internal staff because “our business is unique.” You may think it’s unique, but truth is, it isn’t.
In our experience self-developed ERP systems take two to three-times longer to deploy than originally anticipated, cost more, carry with them many bugs, and require extensive ongoing maintenance and support. Commercially available, integrated and configurable ERP systems, on the other hand, have had the benefit of hundreds of installations from which to evolve and work out the bugs.
Form a Collaborative Multi-Functional Team: Combining the best of your team with systems and deployment experts goes a long way to assuring few surprises, directly addressing the specific problems and accelerating bump-less deployment and switchover.
Make Sure You Have Adequate Committed Resources: An ERP implementation can take considerable time, resources and mind-share. It may require rethinking some existing processes or developing new ones to fill gaps.
Do Your Homework: The more preparation, the better off you will be. That includes process review and development as well as data clean up. The last thing you want is to bring bad Master Data into your new system.
Leave the Past Behind: Avoid customizations and let useless history go.
Attempts to customize a new system to replicate “the way we’ve always done things” is typically
unwise and costly – and locks-in the old dysfunctions you are trying to improve upon.
Bringing excessive “history” into a new system typically requires extensive data format changes, while increasing the risk of bringing bad data (aka Garbage) into your new system. Three years of financial history in the General Ledger at a Trial Balance level should be adequate.
Any other desired data – sales, production, etc. – can be preserved in an easily accessed database, allowing access to your history without the hassle of converting it.
Plan a Quick “Go-Live”: We have seen clients whose self-designed ERP deployments have spanned several years and, in the process, burned up several project managers. In contrast, well-planned and selected ERP deployments can be accomplished in less than 4 months – with just one project manager.
Preserve the Core, Stimulate Progress: This is one of the key premises in “Built to Last: Successful Habits of Visionary Companies” by Jim Collins. You are changing systems for a reason and making a significant investment to do so. Stay true to your core values and competencies, but don’t let the past – “how we’ve always done it” – restrict your future.