9 Critical Factors for a Successful ERP System

Implementation
Posted by June R. Jewell, CPA
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Implementing a sophisticated ERP system, or even a basic accounting

system for the first time is a lot of work. It can also be complex for firms
that are implementing many components and have a lot of entrenched
processes they are trying to overhaul. Just as you must plan and
manage your billable projects to ensure they remain on budget and on
schedule, the software implementation must also be managed and
controlled.
more
I have been helping professional services firms implement complex
business management systems for 24 years, and seen many
implementations go downhill as a result of poor project management,
and lack of commitment to an implementation plan and schedule.
While its not possible to take away all the pain or reduce the learning
curve that comes with moving to a new system, the following are some
best practices that can effectively ensure that you have the basis for a
successful implementation:
Executive commitment
In order to ensure a successful implementation of an ERP system, it is
critical that the project has executive support and commitment. Without
this, the accounting department (usually the owner of the
implementation process) will be fighting an uphill battle in getting firm-
wide buy-in and adoption. When everyone in the firms recognizes that
the executives are stakeholders in the outcome of the system
implementation, they are much more likely to embrace the new system
and comply with new policies and procedures.
Ensure you have realistic time expectations and
resources
Do your homework and make sure you understand how long it will take
to install, how much it will cost, and how much time it will take from your
internal resources. With the right budget and schedule, your entire team
will be more satisfied with the outcome.
I have found that one of the primary reasons clients have not achieved
their desired go-live date is their inability to get critical milestones of the
implementation process completed by the assigned deadlines. Just as
with your projects, delays in the schedule can be difficult to make up,
and almost always result in an extended timeline and increased costs.
Set goals
Just like any other project, if you dont have well-defined and
measurable objectives, you wont have a way to measure success. By
using some simple metrics, such as the win rate, utilization rate, and the
project profit margin, you can track the success of the changes you are
making over time.
You will also need a timeline that will keep the entire project team on
track. First you should determine your desired start date, and work
backward from there. The implementation will take anywhere from three
months for a small firm to 12 months for a very large system
implementation for a firm that has more complexity and multiple
locations
Hire the right consultants
A great consultant can make or break your implementation. Industry
experience is very important. Some software publishers distribute their
software through partners who may be more client-focused, local to
your office, and better able to service your specific requirements.
An important factor to consider in selecting a consultant for your system
implementation is to understand that firms implementation approach:
Does he send someone to your office for a week at the beginning?
Does she offer several hours a week over several months to work with
you through the implementation? Will that consultant work with you on-
site, virtually or in a combination of methods? Are you working with a
team of subject matter experts or assigned to one person that is
supposed to know everything about the system? Does that consulting
firm have specific experience working with firms like yours, or does it
work across multiple industries? Depending on your location, the
modules of a system you are implementing, and your short- and long-
term goals, the implementation partner will be a critical factor to your
success.
Assemble an implementation committee
It is important to assemble a group of key stakeholders that will take
ownership of the system implementation. This committee will determine
the goals, manage the timeline for the project, and keep everyone
accountable to getting their weekly assignments done on time. The
committee should have at least one principal and a representative from
each of the major divisions of the company: accounting, HR, project
management, and marketing.
Processes
It is important to have efficient processes that make your staffs jobs
easier. If you continue to use the same old processes that you have
always used, you will get the same results. Dont try and make your new
and more powerful system adapt to your old processes. Take the time
to understand how to make the system more powerful and automate as
many of the processes as possible.
Once you have determined your new desired processes, it is best to try
and document them as completely as possible. If you are doing
government projects, this may be a legally required aspect of your
compliance with the Federal Acquisition Regulations (FAR).
Documented processes help ensure that all company policies are
thought through and available to employees for most common
scenarios. It helps them understand approvals, policies for making
changes to records, and how-to for most operational functions in the
business.
Training, training, training
The best system in the world is useless if your employees do not know
how to operate it. Even if it is implemented perfectly, it does not take
long for it to get messed up by employees that are not operating it
correctly. I have seen more systems fail for lack of training than any
other reason. Role-based training is crucial for each person in the firm.
You will not see your ROI from your system if you do not ensure that
your teams are able to effectively use the system.
In addition, you should look at ways to do cross-training whenever
possible. This is training multiple people on every aspect of the system
so that turnover, vacations, or extended periods of leave do not
adversely affect the operations of the company. Try to record and
document your training whenever possible. This helps in training remote
staff or new staff if there is turnover, and ensures that everyone is
getting the same training.
Change management
Changing a system can be stressful for some of your staff. Many of
them do not like change and may see the new system as a burden.
Explaining the reasons for the change and the goals the company has
set for improving financial results is critical to success. You will see a
much better attitude and approach by everyone if they fully understand
why the firm is upgrading technology. Providing feedback about the
progress of the implementation can also help keep everyone informed
and hopefully allow them to see that the firm is making improvements
that will benefit everyone.
Measure results
By setting goals in the beginning and measuring results at six, 12, and
18 months after the system is live, you can determine if the expected
ROI is being realized. In some cases, it may take longer to get the ROI.
However, usually a year after your live date you will see some
measurable results. I recommend that you start with your win rate,
utilization rate, and project profit margin. Instructions for calculating and
measuring the improvement to these metrics are provided in Chapter 11
of my book "Find the Lost Dollars: 6 Steps to Increase Profits in
Architecture, Engineering and Environmental Firms."
If you have many goals and areas that need improvement, you may
need to take a phased approach to your implementation. You should
develop a plan for recognizing the attainment of these goals over time.
For example, if you determine that the project profit margin and win rate
are the areas where the biggest gains can be made, you may decide to
focus on one at a time, by first working on project management and
extra services automation, and then several months later implementing
CRM and proposals automation.
While implementing a system can be a lot of work and stressful, the
payoffs can be huge. Leveraging technology to make your people more
effective at their jobs is the key to maximizing your project profitability.

1. Get upper management support. "Companies that

tend to struggle the most [with
ERP] are the ones that lack
upper management level
involvement," says Daniele
Fresca director of Marketing,
IQMS, a provider of industry-
specific ERP solutions.
"Resources at the lower level
tend to not be edicated and
 engaged with the implementation
project without senior level
involvement," she says. That
said, "executives don't need to
get to the point of knowing every
single configuration detail. But
[they need to] be aware of the
issues that are causing delays to
the project."

2. Make a clear and extensive list of requirements

before you start looking at
vendors. "Begin by carefully
defining the scope of your
project," says Ed Talerico,
director, Industry & Solution
Strategy, Infor, a provider of
enterprise applications. "Focus
on specific business processes
and system requirements. The
more specific you can be upfront,
the more detailed your vendors
can be in their proposals."
"If you get one thing right, make it the up-front
requirements gathering process,"
says Brian Shannon, principal
business process management
architect, Dolphin Enterprise
Solutions. "Few things derail
project budgets and timelines as
the 'assumptive' or absent
requirements." So make sure you
engage with end users, IT and
senior management.
"Too often, people select an ERP system based on
 factors such as price, current
technology buzz or the system
that is the flashiest," adds Fresca.
"But without a good fit,
companies are left with
expensive customization and
bolted together solutions," she
notes. The solution: "Find an
ERP system that is industry-
specific, with tools and features
designed to solve your business
requirements. The ROI and long-
term benefits of a good fitting
system are extensive."
3. Don't forget mobile users. "As mobility and BYOD
increase across industries,
accessing ERP systems from
desktops only is no longer an
option," says Ilan Paretsky, vice
president of Marketing, Ericom
Software, a provider of access,
virtualization and RDP
acceleration solutions. Choose
an ERP solution that "allows
users to be productive on
smartphones and tablets." Yet at
the same time will ensure that
sensitive information is secure.
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[ Related: 11 Tips for Deploying ERP Applications ]

4. Carefully evaluate your options before selecting
your ERP system. "Poorly run
and ill-defined evaluation projects
can lead to poor
implementations," says Tom
Brennan, vice president of
Marketing, FinancialForce.com, a
provider of cloud-based ERP
solutions. "Dicey requirement
definitions and vague priorities
can lead to the wrong vendor
selection."
In addition, "lack of participation and input from key
stakeholders in the evaluation
stage can lead to poor
acceptance and user adoption.
And don't forget that delays
running the evaluation project
itself ultimately delay the go-live
date and the time to benefit."
"Another item many organizations miss during the
selection phase of an ERP
system is reporting and metrics,"
says Tiffani Murray, an HR
technology consultant. "What do
you want to be able to gauge
from the system? Is this possible
via the existing, prebuilt reports in
the system or will you have to
pay extra to get custom metrics
that will drive your business,
hiring and resourcing? Find this
out in the selection phase and not
after you've signed a multi-year
contract."
Also, do not forget about integration. An ERP solution
that does not work with your
existing legacy and/or critical
office systems is not a solution
but another expensive piece of
unused or unusable software.
Finally, "find a partner that specializes in your
industry," says Jim Shepherd,
chief strategy officer, Plex, a
manufacturing ERP provider.
"Better yet, find one that is
dedicated to your industry. Those
 trying to tackle the entire ERP
world can't offer the same
expertise."
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5. Get references. "First and foremost, when shopping
for an ERP solution provider, ask
the vendor for at least three
references," says Reuben
Yonatan, founder, GetVoIP.com,
a VoIP shoppers guide. Then
"ask the customers what went
right, what went wrong and what
they might have done differently.
If a vendor can't provide at least
three verifiable, happy
customers, they may not have
the experience you need."
Similarly, if you are a member of an industry
association, ask colleagues for
 ERP recommendations.
6. Think before you customize. "Consider the
amount of customization required
to configure and deploy," says
Steve Bittner, vice president of
Professional Services, Unanet, a
provider of Web-based software
for managing people and
projects. "Highly customized
systems will generate higher
cost, not only in the initial
deployment but when upgrading
from release to release," he says.
"Those businesses with unique requirements need to
consider whether those
requirements can be
mainstreamed to eliminate the
steep cost curve," Bittner says. In
addition, businesses need "to
understand [their tolerance] for
longer implementation cycles,
longer ROIs, more instability,
[which can come with
customization]," he says. "A
turnkey solution may offer less
flexibility but more stability, and
less initial and ongoing cost."
"Generally speaking, many companies' basic business
processes are virtually the same
(like paying invoices, collecting
revenue and procuring supplies),"
says Greg Palesano, executive
vice president, Applications
Services, HCL Technologies, a
global IT services company. "This
 is why ERP was built in the first
place. Companies can take
advantage of standard processes
that are leading class and have
been tested by many other
companies," he says.
"If a particular business function believes they have a
case for a customization, make
sure they prove it," he argues.
"Remember, the cost of the
customization is not only writing
and testing the code for initial
implementation, but providing
long-term support of the custom
code and treating any
customizations as exceptions
every time you upgrade your
software," he says. "Keep it
simple and try not to allow
customization into your ERP
program."
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7. Factor in change management. "Organizational
change management is pivotal to
the success of your project," says
Matt Thompson, vice president of
Professional Services,
EstesGroup, an ERP managed
services and technology solutions
provider. "Typical ERP projects
facilitate massive change in
 organizations that can include
changing of day to day job
descriptions or eliminating job
descriptions in total. [These]
changes impact the culture of
your company and without careful
control and communication plans
and workshops you can create an
adverse reaction to ERP
[resulting in] barriers [to]
implementation and adoption."
8. Appoint an internal ERP product champion --
and surround him or her with
good people. "Do not rely on the
vendor-appointed project
manager only; have someone on
your staff for this," says Morris
Tabush, principal, the
TabushGroup, a provider of
managed IT services. Select
someone within the organization,
who knows or is comfortable
managing software systems, to
serve as the project manager," he
advises. "This person will be
responsible for "collecting all the
end user requirements, learning
the new system inside and out,
working with the vendor on data
conversion, coordinating training
and acting as the point of contact
for all employees."
"One of the most common mistakes made by
companies during ERP
implementation is spending
 significant time, energy and
money selecting the right
software and implementation
partners, only to assign their own
'B' team to the program," adds
Palesano. "This results in
numerous issues during design
and implementation, slow
decision making and delays.
While it's difficult to free up your
brightest resources from their full-
time jobs, ERP implementations
are not simple and they can be
extremely expensive," he points
out. So it's important to "put your
best people on the job. Not just
your best IT people, your best
people, period."
9. Provide the necessary time and resources for
training on the ERP system.
"Learning a new way of operating
will require a significant time
commitment for everyone, so the
project team must take proactive
measures to reduce the burden
on employees," says Joel
Schneider, cofounder, Liberty
Technology Advisors, an IT
consulting firm that specializes in
ERP, business processes and
project rescue. "Identify
department-specific needs,
allowing for sufficient time to
develop and deliver training
programs."
Furthermore, it's important to "recognize that the most
effective training may not come
from outside sources. Tech-savvy
employees within departments
can be given the opportunity for
more in-depth instruction to
become expert resources for their
fellow employees," he explains.
"Having a readily available
support contact within an
operational group reduces the 'us
vs. them' dynamic that can
poison the implementation
process."

If youve ever implemented an Enterprise Resource Planning

(ERP) system for your company, you know it can be a
challenging transition and a rewarding change, if implemented
properly. Here is a 10 step framework that walks you through
high-level steps that will take you from day 1 of planning to
launch. Follow this list to ensure yourself a successful ERP
implementation.
more

1. Need Assessment
The first step in any ERP implementation is to identify your
companys needs. Start by finding and documenting the
critical business processes, inflection points and key
performance indicators (KPI). This will help you pinpoint the
right ERP solution, as well as the appropriate specialists
needed as you go through this important transition.
Remember this is about business processes that support the
enterprise. While information technology considerations are
important, IT shouldnt be the driver of the analysis.
2. Hire a Team of Specialists
Many organizations lack the internal expertise and experience
for ERP implementation. You need to consider hiring or
contracting with an experienced professional to guide you
through the implementation process. This will prevent a lot of
headaches and wasted time, as well as giving you the time to
focus on other tasks.
3. ERP System Evaluation and Selection
Selection of the right ERP solution is one of the most critical
steps in the process. The right program depends on your
industry, your business needs and your system
preferences. One consideration is whether you need an on-
premise ERP system or a cloud computing ERP
system. Many businesses have made the jump to the
cloud. That may be the right solution for you, but understand
its not always the best option. It will depend on your specific
business requirements and your organizations capacity to
support the process. Your ERP consultant can also assist
with this decision.
4. Prepare for Change
Implementing a new ERP system can be a major change for a
company, especially if youve never used one in the past. Its
important to stay transparent with your employees about the
change and engage them when possible. ERP transitions are
as much about changing culture as changing technology.
5. Data Preparation
Dont assume that all of your current data can be converted
into the new system. Analyze your current data and decide
which pieces need to be converted. After your data is all
entered into the ERP database (most databases allow data
entry via spreadsheet) you need to clean it up. Review the
information database and weed out anything that you deem
unnecessary, like old customers or those who are no longer in
business. Data integrity is critical to a successful
implementation.
6. ERP Implementation
After completing the first five steps, its time to launch the new
system. Your ERP consultants have mapped out a specific
plan of how to install, configure and optimize the system for
your working environment. Plans are bound to change (at
least slightly) during this process so always keep your major
needs and end goals in mind.
7. Testing
While the performance and integrity of ERP systems have
come a long way since their introduction in the 90s do not
assume everything will execute smooth. System and user
acceptance testing is a key phase of the implementation
process.
8. Training & Education
After your system is configured, you need to train you
employees on how to use the new program. Try finding a
group that specializes in onsite training to make sure
everyone is up to speed. Youll want to make sure your IT
team has an extra session of training to know how to handle
any tech problems that may arise in the future.
9. Go Live!
Once your system has been configured, tested and your
employees have been trained, its time to go live. You can
now safely activate your ERP system. It wouldnt hurt to do
another round of testing after launching, just in case.
10. Ongoing Support
Unfortunately, you cant just install your ERP system and
never touch it again. Advanced ERP implementations require
time and attention beyond the initial installation. This includes
upgrades to your system and general maintenance.

Ten Tips For A

Successful ERP
Implementation
Mon, 09/08/2014 - 12:46pm

by Larry Korak
DEEPER INSIGHTS
The Ultimate Manufacturing ERP
Glossary
<small>Score: 1.2180859</small>

Technological innovation has led to numerous changes in

society, but no one could have predicted the nearly
complete transformation that manufacturing practices
have undergone over the past few years due to
technology. Technology almost always leads to increases
in productivity and efficiency when computer-controlled
processes, machines and equipment are concerned.
However, it is the changes to business processes that
require employees to demonstrate the greatest levels of
flexibility and agility. Organizations that embrace change
often find employees who are willing to learn, adapt and
indeed thrive, as they work to find new and different uses
for technology investments.
Cloud deployments, 3D printing and real-time
collaboration are just a handful of ways forward-thinking
manufacturers are staying ahead of the game. However,
this new age of manufacturing also brings added
complexity. Fortunately, next generation ERP solutions are
being designed to take advantage of these new
technologies with industry-specific technical capabilities,
and are proving to be helpful in making the complex
simple.
To make the most of new strategies, such as collaboration
through social media, business intelligence and deep
analytics, manufacturers now need a level of flexibility
and agility that old, outdated ERP solutions or homegrown
applications cannot provide. Previous-generation ERP
systems were monolithic in nature, and werent able to
easily accommodate change. If a system wasnt purpose-
built for a specific industry, it was most likely heavily
modified in an effort to meet specific customer
requirements making the system hard to upgrade. That
is why looking for a modern solution is very important to
the vitality of an organization, and selecting one that can
keep pace with future market changes out of the box will
offer a better return on investment.
Getting down to business
For many, the idea of selecting, implementing and
deploying an ERP system is daunting as the risks often
seem to outweigh the benefits. Do we have the right
partner? Do we have the right team? Do we have the right
infrastructure? Is the organization committed? Do we
have the right selection criteria? When starting the
implementation process, it is important to remain focused
on your business objectives while keeping a few principles
in mind.
Here are ten tips to ensure that your organization has a
successful ERP implementation:
Scope is key. Begin by carefully defining the scope of
your project. Focus on specific business processes and
system requirements. The more specific you can be
upfront, the more detailed your vendors can be in their
proposals.
Align teams early on. Make sure a clear and concise
charter for the project is documented and supported by
the full internal team, including C-level officers. Align with
corporate decision-makers early and involve a cross-
section of teams in the evaluation committee.
Get specialized treatment. Select an ERP solution that
fits the specific needs of your vertical industry. Choosing a
solution which already contains functionality to address
industry-specific processes, terms and regulation
compliance will eliminate the need for costly
modifications.
Think long-term. Choose a flexible ERP so that you can
accommodate unforeseen future needs and changing
business requirements.
Think out-of-the-box. Avoid customizations at all costs.
They cause your ERP to be difficult to upgrade, causing
continual need to update those modifications.
Be efficient. Adopt the best practices and workflows of
the ERP, rather than trying to change the ERP to
accommodate your organizations current workflows. Your
organization will get maximum efficiency by adopting the
ERPs integral strategy for operational flow. If you try to
mold the new ERP to your old processes, you will lose the
efficiencies built in to the solution.
User experience reigns supreme. When choosing an
ERP, be sure to consider the ease of use and the overall
user experience. A solution that is highly intuitive speeds
the implementation process, reducing the amount of
training required.
Training is paramount. As you make your ERP selection
and plan the implementation phase, allow for adequate
training of personnel. Make sure users are brought up to
speed on the new functionality and benefits to them. This
encourages them to be fully engaged in the transition,
embracing rather than resisting change.
Set realistic expectations. Do not try to rush through or
skip necessary steps of a phased implementation in order
to speed outcomes.
Communicate, collaborate and document. Be sure to
keep track of decisions concerning your projects scope,
expectations and concrete deliverables. Collaborate with
your ERP vendor on successful implementation strategies,
taking advantage of lessons learned from previous
successful implementations. Although no two ERP projects
are exactly the same, you can often leverage tactics that
have been proven to work.
Highly flexible ERP systems allow companies to be
proactive rather than reactive to customer demands and
market changes. These solutions can prepare and plan
strategic actions, beating competitors to opportunities,
preventing issues from escalating and communicating in a
much more timely fashion. With solutions that allow you
to quickly and easily adapt processes, expand offerings
and change workflows without costly modifications
organizations can pursue growth opportunities with
confidence. Whether its developing a product for a highly-
demanding market, adding high-value services, or
specializing in made-to-order quality products, a flexible
ERP solution allows organizations to focus on the details
that matter most to customers. As you seek new revenue
sources and ways to attract new customers, you will
appreciate the ability to focus on the important
competitive advantages speed, quality, innovation and
service.

Introduction
There are certain truisms in life about which we have no choice but to accept: We will all
grow older. We all need nourishment. We all breathe air. There are other truisms that we can
choose to accept or ignore: Unhealthy behavior causes early death. Breaking the law means
going to jail. Economic independence requires that you spend less than you earn.

Implementing ERP is hard work maybe the hardest work you will do in your career. That is
an example of a truism from the rst group. It is inescapable.
The 11 Steps to ERP Success fall into the second group. You can choose to accept or ignore
the steps, but that does not change their fundamental truth. Ignoring some of them does not
doom you to certain failure, just as not everyone who smokes gets lung cancer. But accepting
all of them and acting accordingly will guarantee that you have an implementation that you
will be proud of, and look back on, later in your career, as some of your best work.

These steps are not new, or creative; they are the cumulative knowledge of the thousands of
ERP implementers who have gone before. Within each success step there are degrees; it not
possible to be perfectly successful at all eleven. The intent is to make clear the risks and the
bene ts such that you can make an informed decision about where you spend your time and
resources.

If you nd eleven to be an odd number of steps in an otherwise metric world, it is a reminder of

one of the biggest challenges you will face as you make your ERP journey: the real world is
not a tidy place. Could the list have been twelve? Yes. Could the list have been a top six?
Yes. The length of the list is a judgment of where the in ection point occurs for time
invested/reward accrued, and how many critical items an average implementation team can
effectively manage.

Our eleven have been chosen with these criteria: (a) critical for success (b) require consistent
daily effort over a long time period (c) requires strong leadership and interpersonal skills and
(d) cannot be xed after the fact by throwing money or people at the problem.

The last point is the most compelling. After go-live, you are on a implementation trajectory
which is dif cult to change. You are prepared or you are not; your end users are ready or they
are not; your solutions work or they dont. Either way, you are committed. The ERP bell
cannot be un-rung.

How will history judge your implementation? As a well oiled machine, or a litigation waiting
to happen? Implementing ERP well is a dif cult, but not impossible task. It requires not only
that you work hard, but that you work hard on the right things.

The eleven steps that follow guide you in what those right things are.

The ERPFocus.com Editorial Team

1
1
Vendor Selection
The choice of vendor for your ERP software is critically important to the success of your
project. A good t for your industry and business ensures a relatively smooth transition from
old to new. Solutions which are ef cient and intuitive speed up the learning process, foster the
sense of ERP being an improvement, and contribute to organizational con dence. ERP
software vendors need to be evaluated along dual pathways. The rst is the more obvious one;
is their ERP product the right t for your industry and business model? The second is less
tangible, and therefore more dif cult to evaluate: is the vendors culture the right t for your
culture? Determining the t of the software product for your business is the more important
decision,

but should also be the most objective. Unless you are hoping to secure some sort of strategic
advantage with an unusual ERP solution, tried-and-true should be your rule. Your vendor
should be able to put users in front of you from your industry who make you feel positive
about the strengths of the product. If you cannot nd exact industry overlap, then nd process
similarity, but in any case, talk to people who have used that particular ERP product over
time. Construct a basic numerical scorecard around the critical features/deliverables you need,
and use it and trust it - when comparing products. Be careful when someone with no
particular track record in your industry tries to buy market entry with a noticeably low asking
price, and remember that there is no amount of money in your company suf cient to x a bad
ERP solution. Pick a vendor who you judge will be around for a while, and supports on-going
development for your product.

Trust your Antennae

Evaluating vendor culture is trickier. Bear in mind that there are going to be two very distinct
phases to your relationship with your ERP software vendor. During the sales cycle, you will
be the most important person in the world. There will be no request too large, and no question
too small that does not elicit an almost obsequious response. After the sale, though, the actual
business relationship begins, and that is the relationship that you must do your best to gauge.
You should feel positive about your vendors; that they are ethical, honest, and would never
intentionally mislead you. You should feel like they consider your well- being important, and
that you will be able to work together through unexpected problems. Dont over think this
one, and trust your instincts. If it looks like a duck and quacks like a duck, its probably a
duck.

Selecting an ERP vendor is a big, strategically important decision. Involve as many peers and
viewpoints as you can possibly manage. Feel good about being able to articulate the
reasoning for your choice, numerically if possible. Dont expose yourself to risks without
commensurate rewards. Picking the right software vendor is a huge step toward to ERP
success.

2
2
Choosing an Implementation
Consultant
Depending on the size and scope of your ERP
implementation, you may be faced with choosing
a vendor to provide a consulting team for your
implementation. Not every ERP project requires a
full time consultant team. Whether or not you need
consultants depends on how much in house knowledge
you have about your ERP software (and to what extent
that software can be self-taught); how much time you
have to complete the project; and how many modules
and end users you are trying to implement at one
time. If you do determine that you need some ERP implementation consultants to guide you
through the unfamiliar process of an implementation, then selecting the right implementation
partner becomes as crucial to your success as selecting the right software vendor.

Like software vendors, ERP implementation consultants need to be evaluated both in terms of
product and culture. The concept of product may seem less tangible for a consulting group,
but if you listen
to multiple sales presentations, you will begin to recognize differences in process that create
product differentiation. Some consultants will stress project management skills; some will
focus on their ability to create an atmosphere of collaboration and consensus building; others
may de ne themselves as being the most technically competent. The problem you face is in de
ning what product you are really looking for. If you are looking for consultants as teachers,
you may choose a different vendor than if you are looking for consultants as technicians.

A Marriage Made In Heaven Or....

Evaluating the culture of an ERP consulting company is perhaps even more critical than
evaluating their product. An implementation consulting team is the business equivalent of a
shotgun wedding; one
day a bunch of people show up, sit in your area with you, and start making suggestions on
how to do things. There will be growing pains around who should lead, and who should
follow; awkwardness around when to accept an answer at face value, and when to require
background reasoning; uncomfortable personality clashes; and some amount of inevitable
friction. There is no absolute science on what makes an ERP consulting group the right t for
your organization; you just look for clues. If you are seeking a partnership, and the consulting
group seems rather arrogant and dismissive of your nai ve questions, you cross them off the
list and move on.

There is a third option, and that is to subcontract and manage independent ERP consultants by
yourself. This is not for the faint of heart, however, and in general the risks outweigh the
rewards, unless you have previous ERP project management experience.

If you pick a good ERP consulting vendor, and the partnership builds smoothly, it is a thing
of beauty and an enormous boost for the success of your project. In these cases, the relative
strengths of each group combine to create a whole which is greater than the sum of the parts.
There is comfort and strength, in traveling the ERP implementation path with someone who
has traveled it before.
3
3
Change management
In matters of faith, it is a close call between which requires more: your belief in a deity of
choice as part of your spiritual health, or your belief in change management as part of your
ERP projects health. It is largely a matter of faith because it is dif cult to objectively observe
or measure change readiness. Still, a wise and consistent investment in change management
will be one of your most important contributions to your projects success.

Most of us, in our business careers, have managed changed similarly to the way we have been
managed: simply making speedy adoption of a new initiative a condition of employment.
However, ERP is so large, and touches so many people, that this approach is not numerically
feasible; you couldnt realistically re that many people and keep the organization operating.
The only logical alternative is to manage them in such a way that, even if they are not positive
about ERP, they are at least accepting of the change, and understand its business reasons.

What is Change Management?

What exactly is this process, meant to ensure that the host does not reject the organ? We hear
the phrase change management and it sounds pretty intuitive, until we try to write down the
ve action steps we are going to take in order to successfully prepare people for the change.
Thats when we realize we dont really have a clue about what change management is or how
to accomplish it. The good news and most critical thing to remember is that the way
people come to believe things and form opinions is both consistent and predictable. By
managing to those predictabilities in terms of timing and content, the normal discomfort
associated with change on the scale of an ERP project can be reduced to manageable levels.

If it is your rst time attempting to proactively manage change, you should probably invest in a
training course, or hire a consultant, just to reinforce that you have valid, effective process.
The key steps on your journey to change are (1) Identify everyone who will be affected by the
change (this is a bigger group than you will initially think) (2) Communicate to this group
what change will be coming (3) Establish the compelling business reasons that make ERP
necessary (4) Explain how they must behave in order for the project to succeed and (5) Give
frequent project updates, always reiterating steps two through four. If

it ever feels to you like you are over communicating, or that your audience could give your
presentation because theyve heard it so many times, you are exactly where you want to be.

There is no question that on one level, ERP is a technical project, requiring intelligent design,
seamless logic, and sophisticated math. But no matter how robust the solution, ERP will only
be successful if people embrace it and use it as designed. That behavior will not occur without
change management effort.

4
4
Data Cleansing
Ask any veteran of an ERP implementation to cite critical success factors, and you will
always hear data cleansing near the top of the list. Then ask those same veterans to identify
the top two or three tasks that they most underestimated, in terms of scope
and complexity, and see if data cleansing does not also make that list as well. Lets talk
about why data cleansing is important to ERP success, and some tips to improve your
approach.

Data cleansing is a huge factor in ERP success because

it is leveraged in every phase of the operation. An ERP
implementation will be exactly as successful as its testing execution, and the only limitation
on testing execution is master data completeness and accuracy. An ERP implementation will
be exactly as successful as its training program, and effective ERP training requires master
data completeness and accuracy. An ERP implementation will be exactly as successful as its
synchronization of business data at go-live, and that synchronization requires master data
completeness and accuracy. Every success that occurs has complete and accurate master data
as a prerequisite.

Prepare, Prepare, Prepare

There are three primary reasons that people underestimate the task of data cleansing, which, if
avoided, will make your ERP implementation better: (1) because master data is usually
dispersed among multiple systems in legacy, people rarely appreciate how much of it there is;
(2) some data cleansing ends up being an iterative process, which creates a bit of a Catch-22
you cant test without master data, and the reason for the test is to evaluate master data; and
(3) it is extremely dif cult to objectively measure progress

on data cleansing, particularly in light of number 2; , data that you might have considered
cleansed and complete does not test well, and suddenly it becomes uncleansed.

But to be forewarned is to be forearmed, so with this knowledge, there are lots of steps you
can take
to improve the data cleansing process: (1) Make progress where you can. Some data will take
time to accumulate, but in the meantime, you can recognize that you have addresses on
South Main Street, South Main St. and S. Main Street and S. Main St. and work on
xing those. Look for zip code and city mismatches. (2) Schedule routine data cleansing
review meetings, and be relentless about probing for bottlenecks and problem areas (3)
Establish an aggressive completion plan which you probably will not hit but invest the
time to understand exactly why you are not hitting it. (4) Assign the right people to the task.
Smart, hard working, detail-oriented people match the right skills with the job need.

Unlike most of an ERP implementation, the lessons learned, and the processes created for
data cleansing become part of an organizations DNA; complete and accurate master data will
be as essential for success two years after go live as it is on day 1. Make it part of your ERP
success story.

5
5
Leadership Commitment
Having a committed executive group is an important key to ERP implementation success. If
everybody in the organization can see that the C-level, the steering team, and the executive
sponsors are aligned around a successful ERP launch, they will behave likewise, which will
allow you to focus your attention on other key success factors. On the other hand, if middle
management senses that they can drive a wedge between the implementation team and the
executive group, the environment will be akin to a feeding frenzy among sharks, and you will
nd a disproportionate amount of your time attending review meetings, defending the decisions
you have made.

It should not require a Herculean effort to achieve and maintain leadership commitment. The
fact that there is an ERP project means that there was suf cient interest and commitment to
fund the strategically important initiative even though ERP has a reputation of medium to
high risk, and dif cult-to-quantify bene ts. The objective, then, is to nurture and grow that
original support, without anything visible happening for several months.

However, as design sessions make it becomes obvious that ERP will require change,
communications from lower ranks up through higher ranks creates successive embellishments
such that executive leadership will hear that ERP is going to destroy our business.
Obviously, this type of hyperbole is generally not created by maliciousness, but simple fear of
change. So, to ensure that leadership remains con dent and supportive of the ERP effort you
should take these proactive steps:

1. Try to be the rst to communicate process change decisions. This is not always easy;
especially if you are on routine monthly or bi-weekly review cycles. If you write
well, make use of emails during the intervals; if not pick up the phone. The critical
point is to make certain that decisions are explained in terms of sound business
judgment. If your explanation is not compelling, it may not be a good decision.
2. Try to always present executives with a bigger picture narrative when possible. To
the extent that you can arrange numerous tactical ERP decisions into a strategic
picture with implications, you will engage executives in their comfort zone.

3. Solicit executive feedback and do not be defensive if you receive it. Your goal is to remain
tightly aligned with the executive leadership, and that will only happen if they are con dent
that you can listen to and respond to their concerns. Also, this keeps them involved in
decision-making; you want them to think of these as our decisions not your decisions.

If your executive leadership remains steadfastly committed, middle management will quickly
sense that attempts at sensationalism are a waste of time, and will refocus their efforts on
more productive endeavors. This in turn, allows you to focus your time on more productive
tasks. Keep your leadership group aligned around and enthused about the project, and your
probability of success goes up signi cantly.
6
6
Team Talent
To cite assembling the right team as a key ERP success factor seems as obvious as saying
the key to growing your business is to increase your revenue, or the key to wealth
accumulation is to earn more than you spend. Yet every ERP project manager will have to ght
and usually compromise for access to the right talent.

The talent an organization assigns to its ERP team

demonstrates to a large degree its commitment to,
and comprehension of, long term organization health.
Five years after the implementation of a mediocre
ERP system, it is of no value to regret assigning mediocre talent to the effort. A talented
implementation team sees the big picture more completely, appreciates the implications of the
strategic plan better, evaluates decisions not only in terms of what is today, but what is likely
to become tomorrow, and has the professional capital and organizational respect to sell dif
cult, but necessary process changes.

So what are some of the indicators of good talent when evaluating individuals for
implementation team participation? First, if possible, individuals should be seen as
promotable. People who are promotable have less allegiance to the status quo, and will later
populate the organizations higher ranks with fundamental understanding of how the business
processes were designed. Secondly, an individual who has high personal intelligence is nice,
but an individual who has high team intelligence is a necessity. Being personally smart has
nothing to do with and can occasionally interfere with being team smart. Being team
smart means you recognize the point of consensus, and do not belabor a conversation beyond
that point; it means

that you do not steer conversations in interesting, but unimportant directions; it means that the
quality of a decision is evaluated solely on its effect to the organization; it means that
whatever personal ego you have is left at home where you can conveniently pick it up after
work. A third attribute is depth of understanding. Talented people not only understand what is
required, they understand why it is required, and this comprehension is incredibly valuable
when it comes to determining what business practices are subject to change and which are
not. And nally, the most intangible, is the ability to listen to multiple points of view, and
assimilate the best parts of all into a solution that is better than any.

If you assemble a strong team, everything about the project goes better. Change management
is more effective because the team members have credibility. Testing goes better because the
test scenarios are chosen wisely, and executed intelligently. Fewer milestones are missed, as
team members are used to accepting additional responsibility, and pitch in to help wherever
needed.

There are many factors that in uence the success of an ERP implementation, and team talent
is one of the biggest. A highly talented team alone does not ensure that your implementation
will be world-class, but mediocre talent alone will ensure that you have a mediocre
implementation.

7
7
It would be easy to expect that after tens of thousands of business implementations, ERP
software ought to
be mature enough to just run the install wizard, go get a cup of coffee, and come back to a
completed ERP system. Unfortunately, ERP systems are so exible

and complex that a huge success factor for an ERP implementation is aggressive and
extensive testing.

Testing requires more than just assigning manpower.

It is an iterative process, which means not only
testing, but evaluating problems, and xing things. It
means having valid master data available to support
the test, and understanding the process you are testing. It means testing development objects,
and how they interact with everything else. It means having a dedicated test client, which can
be controlled and monitored. Each test leads to a bigger test, so there is a natural progression
of testing sophistication over the course of an implementation.

After initial con guration is completed, all planned transactions are tested for simple
transactional validity: I can enter a sales order; I can report production; I can place a purchase
order. Some problems will emerge from these tests requiring revision and re-testing. This
level of testing is done on an individual basis, with each functional team understanding that
all of their transactions need to be successfully tested by a given milestone date.

Shortly after this milestone date, the rst round of integration testing should be scheduled.
Integration testing in this case, means testing an entire business process, from initial input
to nal output. An integration test is a scripted arrangement of the ten to sixty sequential
transactions required to execute a speci c process in the real world. The key to making this
phase successful is to identify the right fteen to thirty scripts that represent 90% of the
business processes, and working hard on process improvements until they all execute
smoothly.

The next round of integration tests involves subject matter experts and super users. During
this round of tests, random but real world data is introduced. The randomness ensures that the
right processes were identi ed in integration test one; using real world data allows business
participants to help evaluate the output. During this round of testing, master data must be well
developed, because the ability to enter real orders with real customers means that master data
is available to feed the process.

Subsequent rounds of integration tests try to rehearse and execute a go-live, including
synchronization of inventory, sales orders, purchase orders and production orders, and
replicating one hundred percent of the activity of a business for a given time period.

Every test cycle teaches, uncovers problems, and makes go-live more manageable.
Eventually, an in ection point occurs during testing which is incredibly important for a teams
morale and attitude; it is the realization that the team is certain of a successful go-live. That
knowledge and con dence which can only come from repeated and successful testing - is
essential to an implementations success.

8
8
User Testing
One of the best ways to increase the likelihood of an ERP implementation success is with an
effective end user training process. There are several levels of escalating contribution that can
result from a well- executed end user training program.

Ensuring that on day one, everyone can logon to the new system, get to the transactions they
need to
do their jobs, and have the knowledge to execute the transactions by themselves is the most
basic level
of success. Without this baseline of competency, there is no question the effort would fail.
This level of competency can only occur if the end users have received effective educational
instruction, and have been asked to practice applying what they have learned.

The second tier of end user training success is to have some end users suf ciently trained so
that they can participate effectively in volume testing leading up to go live. These people
contribute beyond their task participation because they bring real world eyes to problems to
which the implementation team may have grown blind. They recognize what areas of training
are going to be especially problematic. Also, they can look at system output and in a glance
spot common sense errors that a team unfamiliar with the day-to- day data might overlook.

Find Your Problem Solvers

The highest bene t of end user training is to increase the effective size of the problem-solving
team at go-live. Problem solvers are helpful, positive energy contributors to an effort; much
more valuable
than the more common problem identi er, who are content to throw a problem over the wall
to the implementation team, and then walk away from it. The best way to increase the number
of problem solvers is to identify individuals during training who either show unusually quick
comprehension of the material, or unusual curiosity, and to give those people additional
training and mentoring.

All of these levels require a consistent and logical education process. Everyone in the
organization who will touch ERP must be identi ed by name and job function. Every
transaction required for that function must be identi ed, and assembled into an appropriate
security role. Training material must be prepared, and suf cient practice problems set up so
that everyone can engage in hands-on practice. Different
types of transactions require different amounts of preparation and master data. With ve valid
customers and ve valid materials, you can create dozens of different sales orders, but you
cant report production unless you have a work order and suf cient inventory of all
components. Instructors must be enthusiastic, knowledgeable, and patient. Training must be
timed for shortly before implementation, or else retention goes down dramatically.

Getting the maximum number of people competently trained in ERP for go live is an
incredible boost for success. The need to conduct training occurs during the exact same time
frame that anxiety about go-live is peaking. Keep everyone focused on the prize; training is a
key success factor.

9
9
Spending Wisely
An oft-repeated rule of thumb is that an ERP implementation will cost you twice as much as
you planned for by the time you are nished. Without a doubt, it is easy to overspend an ERP
budget. However, barring a signi cant increase in scope, and assuming a reasonable budget,
arrived at through collaboration with your IT department, software vendor, and
implementation consultants, there is no reason you cannot stay close to budget and use your
funding for a very successful implementation.

The rst success tip is to warn you that you will become wildly popular overnight. Remember
that this is because you are managing an enormous budget, and not because those Dale
Carnegie classes are nally paying off. After a while, you will learn to just skip the unexpected
invitation to lunch, and ask what the request is. It is a necessary skill to learn to say no to a
request for money without saying no to your working relationship.

The second success tip is to have a well-de ned training plan for your implementation,
development, and basis teams. Without a written plan that targets speci c objectives, you will
end up over spending on education, as there is almost always a compelling argument for each
individual class.

The next spending success tip is to think of your budget as a ow of money over time from
kick off to two months after go live, and your job is to set up a monthly ow that spends
seventy- ve percent of your budget after all other known expenses are accounted for. Your
implementation plan is going to consist of hundreds of tasks that can be categorized into
needs and wants. If the seventy- ve per cent money covers all of your needs and wants,
you are golden there will be few dif cult choices. If the seventy- ve per cent number covers
all of your needs, but not all of your wants, then you have to discard enough from your want
list to arrive at a spending ow that keeps you in budget. If the seventy- ve per cent does not
cover your needs, then you either need to reduce scope, or decide where to intelligently
increase your risk. Monthly spending is overwhelmingly a function of people, and the easiest
way to make adjustments is to reduce consultants and add highly talented people from within
your organization. Generally speaking, you will be able to pay two or three internal people for
every consultant you can do without.

Lastly, use that nal twenty ve percent surplus budget in the last six weeks before go-live and
rst six weeks after. There will be unexpected problems, and that is when you need the
exibility to spend money aggressively, and wisely, in order to quell rumors, and nd speedy
resolutions to emotional problems. Once people recognize that problems are being corrected
quickly con dence soars, and the probability of success takes a stair step up.

10

STEP

10
Adapting Business Processes
One of the most dif cult tasks you will undertake in your pursuit of a successful ERP
implementation is knowing when to change a business process to conform to out-of-the-box
ERP, and when it is essential
to customize ERP to preserve a strategic business process advantage. The reason it is a dif
cult task is because while there will be very few business processes that actually represent a
strategic advantage, you will encounter one hundred per cent resistance to changing any of
them.

An example of adapting a business process might be: Suppose that you print advertising
brochures, and because of the high cost of set up, you always over produce by 5%, since the
cost of an overage is small compared to the cost of a shortage, and youve always simply
given the overage to the customer. This wont work in ERP, for a variety of reasons. So do
you change your practices, or change ERP?

ERP systems have been developed and re ned by observing best business practices and
incorporating them into the design; if you have a non-conforming process then its likely not
a best practice. Yet, you will face opposition to changing, because somebody is going to have
to do something they dont want to do; marketing wont want to bill customers for product
they didnt order, production will not accept being charged with 5% scrap, and planning cant
afford the risk of shortages.

So how do you win and be successful? First, you have to mentally separate yourself from
your peers and friends, even though you fully understand their concerns. Then you have to
ask yourself if this thing you are debating is a fundamentally good business practice. In the
example above, imagine yourself asking the CEO for permission to customize ERP, so that
you can give product away ef ciently. At this point, you know what the right answer is, and
your responsibility to the success of the project is to be the one with the courage and
perseverance to say, No.

On the other hand, suppose ERP didnt handle an on-line design feature where customers
could lay out their own brochures and send a completed design to you over the web for
printing. You would probably feel okay asking permission to customize ERP for that; it is a
strategic business advantage.

These situations can be emotionally draining. When a sales manager is in your face, adamant
that your decision is going to ensure that she does not hit her annual quota, it is intimidating,
even if you know it is not true. Keep in mind that your organization did not invent business.
In addition to all of the tangible advantages ERP brings to the table, create an additional
success out of knowledge that your ERP package represents the norm for business practices,
and you have the opportunity to quietly correct some bad business habits.

11

STEP

11
Defining Success
De ning success for an IT project seems to be inherently more dif cult than de ning successful
nancial expectations, or manufacturing objectives. Yet without an articulated set of post go-
live expectations, the success of an ERP implementation becomes a matter of opinion and in
the worst case, a matter of in nite opinions. If an organization is lazy, and adopts a default
metric of how many people are bitching about the new ERP system, then almost all
implementations would be deemed failures. It is essential for the focus of the implementation
team, for the health of the organization, and for appropriate allocation of resources that a set
of measurable criteria be put into place prior to go-live which are the nal arbiters of ERP
success.

Think Achievable
Unless your implementation is within the aerospace industry, your success de nition does not
need to
be rocket science. The litmus test of a suf cient de nition is one that, no matter what else
additional happens or is said, you will feel the implementation was well done. For example, a
simple success statement could be Convert over to ERP. But if you couldnt ship anything
the rst two days, would you be disappointed? If so, how about Convert to ERP with no signi
cant business disruption. Thats better. How about Convert to ERP with no signi cant
business disruption and no negative impacts on external customers. Thats even more speci
c, and leads to discussion about whether the correct phrase is no negative impacts or no
ERP-related negative impacts.

It is also perfectly acceptable if success criteria are time phased, and represent a sequentially
higher
bar over time. For instance, an end of week #1 objective might be to have no more late orders
than the average over the past twelve weeks. (If you do not have success criteria that take
history into account, then the historical 20% late that you have always had will suddenly
become 20% late because of ERP).
An end of week #2 objective might be to have a reduction in late orders, have received no
customer complaints as a result of the ERP objective, and to be billing at historical weekly
averages. An end of week #3 objective might be all of the week #2 objectives plus no raw
material or intermediate shortages. An end of week #4 objective might be all of weeks one
through three, plus initial distribution of daily business activity reports. And so on.

The critical point is, a successful organization will have consensus on what constitutes
success. It is well documented that if you administer random shocks to lab animals,
eventually the animals simply retreat to a corner, and do not move, awaiting the next random
shock. If an ERP team is allowed to be randomly criticized for failing to achieve unarticulated
objectives, they will end up retreating to a metaphorical corner. Tell the ERP team how to be
successful, and then congratulate them when they are.

12

Conclusion
If youve read and thought about each of the eleven success steps, you are probably feeling a
combination of intimidation and disbelief. Intimidation because this stuff is hard work, and
almost none of it is something for which many people have natural skill or previous training.
Disbelief because, after a while, it seems like this is an awful lot of to-do about a software
implementation.
If you take nothing else from this white paper, believe that these success steps are real and
necessary. Underestimating the dif culty of an ERP implementation is a grave mistake. Find
people who have been down a road like ERP before, and whose opinions you trust IT
professionals, consulting partners, software vendors, other project managers and ask them if
the items on this list are critical for your project success.

Stay intimidated every single day of your implementation project. Do not be paralyzed with
fear; just remain respectful of the multitude of ways in which your project can derail, and use
that respect to motivate the effort to make sure it doesnt. Learn early on who you can trust
without reservation to help you with these steps, and lean on these people heavily.

By now, you recognize that these eleven success steps are much more of a philosophical
anchor than task items than can be crossed off a to do list. Every day, every decision and
interaction is passed through a lter of what will make the team stronger, what will make the
end users more prepared, what will keep the leadership committed, and how we can test this
idea. You automatically reject solutions that are not consistent with the success steps, and by
so doing, people learn to create success-oriented solutions. You make certain everyone can
see you staying involved in the change management, data cleansing, and business process
change efforts.

The paradox you face is that even though you have no training or previous experience no
compelling quali cations at all people expect that you will have a successful
implementation. The only logical way out of this paradox is for you to assimilate as quickly
as possible the cumulative knowledge of the many who have also done what you are doing,
and by doing so, begin building your quali cations.

Because an ERP implementation is dif cult does not mean it cannot be both fun and create an
enormous sense of accomplishment and satisfaction. Being a good ERP project manager
doesnt create a massive fan base like being a rock star or a major league baseball player
does, but the people you work with will understand what you did, and how you did it. Adopt
the steps that have made other people successful, and always keep your eye on the goal of
your own successful go live.

We hope your own ERP journey is a great success!

The ERPfocus.com editorial team

Priority Name

1 Lack of senior manager commitment

2 Ineffective communications with users

3 Insufficient training of end users

4 Failure to get user support

5 Lack of effective project management methodology

6 Attempts to build bridges to legacy applications Composition of project team

members

7 Conflicts between user departments

8 Misunderstanding of change requirements

9 Failure to redesign business process

10 Misunderstanding of change requirements

Table 1-1. Top ten risk factors of ERP risk (Huang et al., 2004)

2.5. Critical Success Factors for ERP implementation

Rabaai (2009) researched previous studies identifying critical success factors (CSFs) for
ERP implementation. This research presents the top 12 most frequently cited CSFs from
previous studies: Top management commitment and support, change management, project
management, business process re- engineering and system customization, training, ERP team
composition, visioning and planning, consultant selection and relationship, communication
plan, ERP system selection, ERP systems integration, and post-implementation evaluation
measures.

Top management commitment and support

Successful ERP implementation depends on management to prepare for challenges that might
be faced (Motwani, Mirchandani, Madan & Gunasekaran, 2002), as well as senior
management who are involved in overall strategy of the company and are not familiar with
technical aspects (Yusuf, Gunasekaran & Abthorpe, 2004). Also, top management
commitment and support leads to overall organizational commitment across an organization.
It results in the successful ERP implementation (Umble & Umble, 2002).

Change management

Ehie and Madsen (2005) stated that ERP implementation involves more than changing
software or hardware systems. Ideally, by reengineering business processes, ERP
implementation can help an organization to benefit from higher levels of efficiency and
improved performance. Therefore, ERP implementation may cause changes that lead to
resistance among employees (Glover, Prawitt & Romney, 1999). Consequently, balancing
conflicts between staff and technology and effectively managing employees in the change
process are key elements for the successful ERP implementation (Ash & Burn, 2003).

Project management

Effective project management is critical for the successful ERP implementation (Umble, Haft
& Umble, 2003; Nah & Delgado, 2006). Bingi, Sharma, and Godla (1999) found that a lack
of proper understanding of the project needs and the inability to provide leadership and
guidance to the project are the main factors when ERP implementation fails. Thus, effective
project management should define clear project objectives, develop a work and resource plan,
and carefully track the projects progress.

Business Process Re-engineering and systems customization

There are two approaches to implementing ERP systems in an organization: reengineering

business processes and ERP customization (Shehab, Sharp, Supramaniam & Spedding, 2004).
Business process reengineering creates deep changes in organizational processes in order to
fit them to ERP functions. On the other hand, when an organization wishes to maintain its
existing processes using an ERP system, it can customize ERP functions. However, many
researches indicate that ERP customization should be avoided or minimized in order to
achieve the full of benefits offered by ERP systems (Shanks, Parr, Hu, Corbitt, Thanasankit &
Seddon, 2000; Light, 2001; Bajwa, Garcia & Mooney, 2004).

Training

End user training has been recognized a critical factor for ERP implementation (Bajwa et al.,
2004). Due to the complexity of the integrated ERP system, end user training is essential for a
robust understanding of how the system works and how to use it. Consequently, appropriate
end user education and training will maximize ERP benefits and increase user satisfaction.

ERP team composition

Since ERP covers diverse functional areas across an organization, ERP team composition is
also important for the successful ERP implementation; an ERP project team should consist of
representatives from all functional units related to ERP.

Consultant selection and relationship

ERP consultants play a critical role in ERP implementation. Consultants can be essential
knowledge resources for ERPs hardware, software, and personnel. They also can help staff,
have responsibility for project management, and audit the project. On the other hand, in order
to be successful system maintenance after post-implementation, knowledge transfer from
consultants is crucial for the organization.

Communication plan

Strong communication within the entire organization during the implementation process
increases success for ERP implementation. It allows the organizations stakeholders to
understand the goal and the expected benefits of the project as well as to share the progress of
the project. An open information policy protects the various communication failures for the
project. (Al-Mashari, Al-Mudimigh, and Zairi, 2003)

While the critical success factors can lead to success of ERP implementation, they do not
guarantee it. Al- Mashari, Al-Mudimigh, and Zairi (2003) state that the delivery of the critical
success factors is one major condition to lead to benefits from ERP implementation, and they
suggests that IT projects can be considered successful as according to the following terms:

Correspondence success, which occurs when there is a match between IT systems

and the specific planned objectives.
Process success, which occurs when IT project is completed within time and
budget.
Interaction success, which occurs when users attitudes towards IT are positive.
Expectation success, which occurs when IT systems match users expectations.

In addition, the taxonomy represented in Figure 2-2 (Al-Mashari et al., 2003)

illustrates the interplay between core business strategy aspects in the ERP
implementation and explains how the role of IT and associated systems can play in
supporting the effective deployment.