Living with ERP

Living with ERP

ERP is not merely a flash in the Y2K pan

Many ERP vendors have experienced a slump in sales now that the rush to implement systems to combat Y2K issues is over. Despite the downturn, it seems that ERP is here to stay and is not merely a flash in the Y2K pan. There is a tendency for many organizations to believe that once ERP is installed, everything will "get back to normal". However, the experience of most of these organizations is that ERP changes the fundamental workings of an organization on a permanent basis. This paper will assess some of these changes.

It's not over yet ...

Going live is usually the beginning of a steep learning curve

Many organizations tend to view an ERP installation as an IT project that will be over once the system goes live. In reality, going live is usually the beginning of a steep learning curve for the entire organization. The system may need to be continually adjusted to achieve better integration with the business processes of your organization. You may also need to update the system whenever a new version is produced. Many companies find they spend a significant amount of time (perhaps years) fine-tuning their ERP system. All these changes need to be made before you can turn your attention to deriving real business benefits from your system.

Organizational changes

Many organizations have found that installing an ERP system has brought about unprecedented changes in the structure of the organization. Your organization will most likely need to adapt to the ongoing need for ERP-related activities - for example, a new support department may be required to support the system. New roles may need to be created and existing roles may change radically with the arrival of the ERP system. Many potential ERP customers say that the cultural shift their organization will have to undergo is the most alarming aspect of installing an ERP system - more alarming even than the price of the system, which can sometimes stretch to many millions of dollars.

Superusers

If a team of consultants will be doing the implementation in your organization, it is a good idea to ensure that they pass on information about the system and the changes they are making to the employees in your organization. Many organizations have found it helpful to create a team of "superusers" - employees who work alongside the consultants and have in-depth knowledge of the system. Needless to say, these superusers will become very valuable to your organization once the consultants leave.

The ongoing need for training

Providing training for all the users in your organization may be one of the biggest hurdles you face when implementing your ERP system. The requirement for training is ongoing - you will need to keep up with system enhancements and new releases of the software. And new employees entering your organization will also need to receive training.

There is a variety of tools that can ease the burden of your training requirements - computer-based training, for example, can be used effectively. Many organizations have found it beneficial to adopt a knowledge management solution - a repository of all the information about your system gathered both during and after the installation. Users can add what they know about the system to the repository and can also search the knowledge bank for information entered by other users.

Conclusion

It has been argued by some commentators that up to 30 percent of all SAP? implementations fail to meet the customers' expectations. Before you implement ERP, it is important to realize that an ERP implementation will take time, will bring about structural change in your organization, and will involve a long-term commitment to refining the system and training users.