Enterprise resource planning (ERP), a software system that brings together various functions into one integrated system, has transformed the operations of many clients. Many are now looking to supercharge their systems and upgrade to the latest cloud-based technology to build on that success. Having worked on numerous successful ERP transformations with our clients, we believe there are six key factors that will help you succeed:
1. A human-centric approach to design
It’s critical to start talking to your end users from day one to ensure that the solution design will meet their needs. Think about the people who will be using the cloud-based system and apply that lens to the entire project, from design and implementation through to end-state and business as usual operations. Spend time developing detailed user journey maps so that the design reflects the needs of everyone interacting with the software.
2. Fostering the right culture from the top down
Active involvement from leadership at the highest levels sets the right tone. The executive sponsor should be someone in your organisation who is committed to the project for its duration and is invested in the outcome.
This person needs to foster a culture that encourages input from the full range of stakeholders, including the core business, end users, the software vendor and the implementation partner, to ensure a truly collaborative co-design process.
Establishing a ‘one team’ culture from day one is not only important for managing risk, but is also a critical factor in good decision-making. From the outset, involve your own team in the choice of vendor and implementation partner. This will help to build trusted relationships and instil a greater sense of ownership.
3. A governance model that is focused on problem-solving
With all stakeholders represented on a steering committee, it can act as a ‘community of solvers’ to effectively identify and address issues as they arise. This creates a balanced structure where all parties have equal ownership of problems and therefore a vested interest in finding their resolution.
4. Harness data for decision-making
The importance of clean, accurate data cannot be overstated. This requires a deep understanding of the existing data which can often be spread across numerous disparate systems. A data strategy that provides clear direction with regards to data migration, master data management, security and archiving is essential.
The criticality of this component of the project is often underestimated, and if it is not executed effectively there is a risk that end users will not be able to access the information they need which can result in a loss of confidence in the new system immediately.
5. Establishing controls and risk assessment from the outset
Working with an implementation partner with a track record in delivering similar projects is vital. An experienced partner will be best placed to articulate and help identify the relevant risks upfront, and help implement effective controls for their mitigation. The team will then continue to monitor and evolve these controls throughout the execution. This can only happen if there is effective communication and a shared sense of ownership between stakeholders.
6. Be agile: there will be detours!
Things will change, and when they do, you will need to be able to respond quickly. A project built on a ‘one team’ approach adopting a user-driven design requires constantly testing assumptions about business benefits, what end users really need from the system, and whether the project is on track to deliver tangible business outcomes.
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