In the transforming world of ERP, many ERP implementations fail, so how can you get it right? For businesses looking to improve efficiencies, streamline operations, and move to a more data-driven model, an ERP system is the perfect solution. However, a very common mistake when it comes to ERP is thinking that the system itself will do all the heavy lifting. What often gets overlooked is the fact that successful ERP begins long before the system goes live, and the cornerstone of any success lies in implementation.
Why is ERP implementation so important?
For businesses of all sizes, an ERP solution has many benefits. These include improved data security, standardized data, compliance support, increased productivity, enhanced visibility, scalability, mobility, cost savings, organized workflows, real-time reporting, operational efficiency, better customer service, and the list goes on and on. However, for one large South African retailer who failed to consider all aspects of the ERP implementation phase, the project failed before it even got off the ground.
In October 2022, the Spar Group launched a large ERP IT system (SAP) in its key KwaZulu-Natal region. However, obstacles during the rollout of the SAP software, particularly at its KZN distribution center, caused various go-live and integration issues, resulting in significant challenges like disrupted stock deliveries to retailers’ stores, leading to reduced service levels and a decline in retailer loyalty.
The outcome? The Spar Group recorded a staggering R1,8 billion loss over the period. This loss included a 12.8% increase in fuel due to less efficient logistics, an increase of 22% in operating expenses, and an increased marketing spend of 19.5% across the board to combat reputational damage and improve sales.to improve sales.
Spar has now halted other SAP projects it had planned, leading to a write-off of R94.1 million.
Read more about the botched SAP project here.
Four ways to get your ERP implementation right
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Plan, plan, and plan again to avoid missed targets
The most common mistake that businesses make is to jump on the ERP bandwagon without. Comprehensive planning and an adaptable strategy. For a successful transition, you must lay down a clear vision, set objectives, and understand how the ERP solution will align with your business processes to avoid confusion, delays, and a system that simply doesn’t deliver results.
You must start with a plan and be able to adapt that plan as you go. Some of the questions that must be asked before you even begin include: What processes need improving? What are your objectives, and what challenges do you currently have? How will you measure success and ROI?
Also incredibly important to include in planning is realistic timelines, along with setting roles and responsibilities. There is no room for cutting corners with ERP. If businesses understand that the process takes time and proper management by accountable parties, that is the first step to success.
Proper training and change management is crucial to success
It’s a very simple concept: if employees don’t understand how to use the ERP solution, the system will never be able to deliver full value. Training must be a priority so that the specific roles and responsibilities of every team member can be optimized.
Time must be allocated for employees to fully grasp the system, understand its capabilities, and to buy into the change management process. This time should separate from their daily work tasks so as to ensure that all employees can get a grip on the full functionality of the system and confidently use it.
Choose a system that’s the right fit
While ERP systems are powerful tools, they aren’t a one-size-fits-all solution. Selecting a system that doesn’t match your current business processes—or failing to adapt your processes to fit the system—can result in inefficiencies and frustration.
Choosing an ERP that seamlessly integrates with your existing workflows while also allowing for process improvement is crucial. It’s important to stay proactive during implementation, addressing any misalignments early on and ensuring that vendor support is responsive throughout. A system that disrupts rather than enhances operations is a warning sign.
Choose the right ERP partner
This is probably the most important consideration because an inappropriate partner can mean disaster for your ERP implementation. The partner you choose must not only offer a resilient and robust but also have an expert understanding of unique industry and sector demands and be able to adeptly integrate the system within your business model.
How to get ERP implementation right with iPlan Global
By choosing iPlan Global, you are investing in a partner committed to your organizational excellence and long-term success. Our team gives your business:
- Comprehensive needs assessment – The iPlan Global approach begins with a thorough needs assessment and analysis of operational workflows, data management practices, and strategic goals. This step ensures the chosen ERP system is a perfect fit for your organizational dynamics.
- Stakeholder involvement – We will orchestrate cross-departmental collaboration to ensure broad perspectives are considered, aligning the system with company-wide goals while also mitigating potential resistance points.
- Customization and flexibility – Our ERP solutions provide the necessary flexibility to adapt to your specific business processes rather than forcing your organization to adjust to standard software limitations. We ensure the software provided grows with your business and adapts to evolving market demands and operational processes.
- Proactive change management and training – Our team offers extensive training sessions, workshops, and ongoing support to cultivate digital fluency in your teams. Our change management strategies are crafted to smooth the transition, address employee concerns, and integrate best practices into daily workflows.
- Rigorous testing and feedback loops – Before full deployment, our team conducts extensive testing phases that involve running the system in a controlled environment, addressing issues, and incorporating feedback from real users. This meticulous approach minimizes disruptions during the full rollout.
- Post-Implementation support and optimization – The completion of an ERP setup is not the end but a beginning. We provide comprehensive post-implementation support aimed at continuously optimizing the system to respond to growing business demands. Through periodic reviews and updates, we ensure your ERP system remains relevant and robust.
When you choose iPlan Global, you are investing in a partner committed to the long-term success of your ERP projects – from start to finish – no matter what industry you’re in.
Contact us today for expertise you can count on!
