May 3, 20188 yr Many companies come across a great opportunity to improve business results when they plan the implementation of an ERP solution. There are not many, however, who utilize the opportunity very well. Here are common mistakes during ERP implementations - Not focusing on Business Objectives - ERP implementation is not a goal in itself. ERP implementation should be seen as a means to bigger organizational goals. It is important that the organizational goals (expectations from ERP implementation) be written down. This at the minimum requires a well facilitated senior management workshop. Not building capabilities to measure/ control the right things - An ERP can be a great enabler of excellence. If the planning pre-work is done well, it is possible to identify areas where data capture and validation is crucial for business results improvement. Not engaging key people in visualising, designing and bringing change - This is one of the biggest mistakes. Imagining that some people will design processes, and people who execute will just follow, does not work many times. We may end up missing out on real pain areas and fixing imaginary pain areas if we do not engage people. Once the right stakeholders are engaged, they bring out crucial points that we can just not afford to miss. There are a large number of practical elements which only folks in execution can elaborate. Not visualizing waste - There is a tremendous amount of wasteful activities in most non-automated processes. Visualizing wastes requires special skills in mapping processes. Value Stream Mapping with expert facilitation can help bring out big opportunities. Not utilizing creativity of our own people - People who are working on execution day-in and day-out have creative ideas. There are some powerful creativity tools that can help trigger more creative thoughts whole building a to-be map. Not visualizing failures/ risks in the proposed new process - An ERP solution can be implemented with trial and error with multiple iterations. It can also be done first time right with very few minor changes later. The difference lies in our ability to visualize and fix risks and failures in a to-be process. Lean Six Sigma methods have a big role to play here. Modifying processes as per ERP thoughts and not the other way round - Most modern ERPs have immense potential for customisation. One can plan a to-be process while considering customer needs, people capabilities and process demands and then bring to ERP team or do it the other way round (Create an ERP practitioner's experience based to-be solution and take it to execution folks and customers). World leading companies like Toyota have been very clear on this - One of the TPS (Toyota production system) Principles says this - "Use only reliable, thoroughly tested technology that serves your people and processes". For our people (including customers) and processes to be served well, it is important that we understand both well before harnessing technology. We should remember that ERP implementation can generate unique advantages for a company and can help offer flawless services with better guarantees to the customer. This undoubtedly creates potential to increase our revenues, sign new businesses, reduce costs and turnaround times. We have been noticing the above-listed mistakes in ERP implementation across industries. What are your thoughts? Have you noticed some of these mistakes? Please feel free to discuss your views here.
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