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In view of various challenges that enterprises at home and abroad may encounter in ERP implementation, based on six key factors (leadership and management, integration with enterprise strategy, project management, organizational culture consistent with the new system, technology, external support) to ensure the successful implementation of ERP, combined with the characteristics of project implementation and the business and technical points of each stage, We suggest to improve the success rate of ERP implementation from the following eight aspects.
Suggestion 1: Establish a business case to quantify ERP benefits
One of the main contents of the business case is investment and income analysis. Through income analysis, the enterprise can demonstrate the necessity of ERP project implementation from the strategic level, so as to reach a consensus on project implementation at the senior management level. Global experience shows that the competitiveness of enterprises is in direct proportion to their degree of intensive operation. Defining the purpose of investment and quantifying the benefits brought by project investment are the only ways for enterprises to conduct intensive operation. Generally, it takes 6-8 weeks to establish and analyze business cases.
Modern enterprises with intensive operation can take the establishment of business cases as a mechanism for continuous improvement of enterprises. For each project investment, the basic data of operation shall be measured before the project starts, and then the improved data measured during the project shall be compared with the basic data to obtain the precise benefits of project implementation. By evaluating the return on investment of each business case, we can improve the accuracy of investment decisions and promote the improvement of enterprise efficiency.
The adoption of business cases can enable Chinese enterprises to move rapidly towards intensive operation. Previously, Chinese enterprises seldom used business cases to demonstrate the necessity of investment in ERP projects. Because most enterprises' ERP projects are the basic application of enterprise resource management, many enterprises believe that its necessity is beyond doubt, and there is no need to demonstrate and analyze from the perspective of quantitative income. Their focus on project objectives is still on the online system and on time delivery. Since the application of business cases in China is still not common at present, and there is a lack of effective methods to quantify benefits and improve within enterprises, this work should start from the preparation of methodology and talents.
Recommendation 2: Ensure that external support is in place
The external support mentioned here includes the service consulting of the consulting company in integrating business and technology at all stages of the ERP project, as well as the necessary support of the ERP software company. The consultant company with rich experience in the industry can use professional experience and methods to ensure that the ERP project is closely integrated with the enterprise's strategy, select the optimal implementation path, pre evaluate the changes required by the enterprise in terms of organization and personnel, plan and arrange in advance, and adapt the enterprise's operation to the new system. In addition, The consulting company will generally consider the construction of the new system and the integration with the original system in the project planning.
The implementation of this work can overcome the common problem of insufficient external support when Chinese enterprises implement ERP projects. At present, there are three reasons for the lack of external support for enterprises: first, some enterprises have positioned ERP as an IT project, and business planning is insufficient, so they lack the participation of consulting companies; Second, in the process of business and IT integration, due to the lack of industry experience of consulting firms, the support to enterprises is also relatively limited; Third, a few enterprises tend to develop their own ERP systems to avoid the involvement of consulting companies. In terms of external support from software providers, some enterprises choose to use software that has not been localized in project implementation, but the demand for vendor support is underestimated in planning. ERP The international industry practice shows that planning and implementation of ERP projects with the help of professional consulting companies will become the mainstream of the industry, and the self-developed system will face a lot of cost burden of updating and maintenance.
Recommendation 3: Ensure the internal support of the enterprise is in place
The support of enterprise senior leaders for ERP projects can make the project objectives closely combined with the enterprise strategy, and make the highest commitment to the success of the project at the enterprise strategic level. The business department's support for the project can mobilize the enthusiasm of enterprise employees in a large range, and it is possible to effectively resolve the conflict of interest that the project and change may bring on on a fair basis. IT The support of the department is a commitment to the success of the project technology, which is directly related to the implementation of the project technical factors and the results of the integration of new and old systems. The support from the above three aspects can ensure that the whole enterprise participates in the project, all personnel use the new system, and establish a continuous optimization mechanism to deepen the benefits brought by the ERP project.
When an ERP project is initiated by a business department, full communication, discussion and coordination are required to obtain the same support from other departments and the top leadership, so as to establish the overall project objectives within the enterprise and determine the project leader. When the ERP project is led by the IT department, the project objectives and necessity need to be recognized by the business department and senior leaders. Whether it is an ERP project initiated by the business department or the IT department, if you want to obtain senior management
The support of the same strength must effectively prove the connection between the project and the enterprise strategy, and reserve a certain decision-making time. Ensuring that internal support is in place is an effective way to overcome these risks.
Recommendation 4: Evaluate the complexity of the integration of new and old process systems
By considering and maintaining the consistency of new and old systems and processes, enterprises can effectively protect existing investments, and also help to accurately plan the project scope and cycle, so as to conduct reasonable resource allocation. Detailed evaluation can promote enterprises to set practical ERP project objectives, optimize project investment decisions, eliminate blind spots in project implementation, effectively reduce the risk of integration of new and old systems, and improve the assurance of project success.
Many enterprises and project teams attach great importance to the construction of new systems in the planning and implementation of ERP projects, but they do not fully consider the integration with the original systems and processes. Even if integration is taken into consideration, some enterprises and project teams sometimes underestimate the complexity and workload required. For projects involving a large scope and complex systems and processes, an effective systematic approach is particularly needed to complete this assessment. A detailed assessment of the complexity of the integration of the old and new process systems will help enterprises to consider comprehensively, clarify the scope of the project, and make a good connection between the new and old systems.
Recommendation 5: Establish an efficient and authoritative project management team
The full authority of the project management team comes not only from the full authorization of senior leaders, but also from the excellent project management experience and professional experience in ERP implementation in the industry of the project management team and its members. The efficient and authoritative project management team can effectively carry out project management and risk control management, and ensure that the ERP project successfully achieves the predetermined goals of the enterprise. Authority can help the project management team to coordinate fairly, reach consensus and resolve conflicts under the overall concept when conflicts of interest occur in various departments. The authority and ability of the project management team enable it to effectively promote necessary process reengineering and organizational change, design and launch corresponding training, so that the organization and employees can adapt to the new system through learning. The authoritative and competent project management team can plan all aspects of the project comprehensively, effectively promote and supervise all stages of the project, and ensure the overall success of the project.
Some domestic enterprises and consulting companies may pay more attention to ERP implementation activities rather than project management, so there is still a certain distance between the ability review and full authorization of project management teams and industry best practices. Sometimes, due to the lack of participation and support from senior leaders, the authorization level of the project management team is limited, so the authority of the project management team is low. In individual projects, the lack of authority and efficiency of the project management team may be due to the lack of experience of its members, the lack of experience in managing complex ERP projects, and the inability to obtain the corresponding authorization of the enterprise. Therefore, the establishment of an efficient and authoritative project management team as a necessary element of the project can ensure the quality of project management and implementation.
Recommendation 6: Improve change management
The objects of change management include enterprise organization, business process, personnel skills, job roles, public relations and media, planning and communication, and employee behavior. Incomplete or inefficient change management will reduce the profits of enterprises in ERP projects. ERP The project is like a big change project. The key to a good start is to evaluate the impact of the change on the enterprise in advance and carry out proactive change management. That is to design countermeasures according to the impact of the change, and actively resolve all kinds of possible conflicts against the new system and process.
A large number of studies at home and abroad show that resistance to change is one of human nature. Most people are more resistant to changes or conflicts of interests brought about by changes, and relatively few people actively accept changes and prefer changes. In the change that must be implemented, if the support and promotion of senior leaders are insufficient, the project will be difficult to overcome the resistance to change. In addition, some consulting companies that provide external support for professional change management sometimes lack practical and effective change management methodology. Chinese enterprises should introduce ERP consulting companies with rich experience in both industry and change management in the project planning period, so that change management can become a catalyst for the success of ERP projects.
Recommendation 7: Provide adequate end-user training
The project starts with training first. The concept training before the start of the project can make the personnel involved in the project familiar with the ERP system and the benefits of the ERP system, effectively reduce conflicts, and even mobilize the enthusiasm of employees to master the required skills; Standards and process training in the project can enable users to understand new standards, roles and responsibilities; Process scenario training can use simulation and test environment to make employees get used to the operation in the new process; The end user manual provides guidance for employees' daily work and helps to record existing problems for further improvement. Without these trainings, the new systems and processes are difficult to be accepted by the employees of the enterprise, and even if they are accepted, they are also difficult to be used. If the training is not sufficient or effective, the benefits brought by the ERP system will be greatly discounted due to the inability of personnel to implement.
For most enterprises, on-the-job training has not been institutionalized. The consulting company responsible for implementation sometimes fails to provide sufficient and effective training in the project due to lack of training experience, skills and courseware. Some projects do not have the right support from senior leaders or effective change management arrangements,
Employees lack enthusiasm for training. The complete design of the system will ultimately be carried out by operators to ensure that adequate end-user training can overcome the current situation of insufficient training in some enterprises.
Recommendation 8: Establish a continuous improvement mechanism to continuously improve ERP revenue
The continuous improvement mechanism includes establishing a new round of business case, establishing new key business indicators (KPIs) and realizing new benefits based on the successful launch of ERP. The establishment of a continuous improvement mechanism can enable enterprises to make full use of the existing ERP system to increase greater business and financial benefits, and through this mechanism, find out the aspects that enterprises need to continue to improve, and constantly enhance the competitiveness of enterprises. However, if there is no continuous improvement mechanism, the benefits of ERP will be limited to the initial benefits when the project is launched, and the system itself may become a new "historical heritage".
The practice of starting enterprise continuous improvement mechanism with ERP implementation project has not been accepted by most enterprises. ERP planning of many enterprises and consulting companies has not even included business cases, that is, the initial improvement mechanism, let alone the continuous improvement mechanism. Here we suggest that enterprises should establish a continuous improvement mechanism for key business indicators with the help of ERP projects, and establish an initial business case as a good start for implementing ERP projects.
