Introduction

ERP implementation is time-consuming and expensive. A typical implementation will take at least a couple of months to yield tangible results. There are specialised ERP systems for most business verticals, like mining, financial institutions and petrochemical industries. Each system comes with different modules, for example Sales, Purchasing and HR. Choose the ones that are relevant, and add modules over time. The ERP marketplace is huge, and there are solutions to fit different sizes and lines of business. It’s better to take a piece-meal approach, i.e. implement the system in one department, see how it works, test it on a real order rather than dummy data, and then move to other departments. Attempting a quick enterprise-wide implementation is an invitation to chaos.

Issues to consider

Here are a few pointers to help you chart the road:

• Project Management: The project needs an executive champion. It is not an IT project!. Manage the project with proper taking of ownership regarding tasks, planning and control.
• Ownership: Identify the data owners. Operational responsibilities for the data, including executive ownership need to be defined and agreed upon.

Define goals: Before signing a contract for implementation, determine what is expected from the ERP system and keep the available budget in mind when exploring the market for the best fit. 

• Go modular: Decide which modules to implement first and which could be left for later.
• Expect hidden costs: Consultant implementation services can be a major part of the costs. Apart from the these costs, and the cost of software and hardware, implementation involves other costs as well, examples of which include training employees across the enterprise, converting data from legacy systems, and integrating it into the ERP system. Furthmore, expect loss of productivity in the first few months after the installation.
• Training: Train employees on the use of the software, but more importantly, educate staff in best practice techniques to ensure an understanding of the implications of actions taken.
• Follow an implementation methodology: An implementation methodology aims to cover the entire implementation project lifecycle from initiation to handover and support. It should have the flexibility to support either a phased approach implementation or an enterprise wide project. Amongst other important functions, an implementation methodology should facilitate a good fit between the business requirements and application's capability.