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Showing posts from December, 2018

8 Ways to Developing a Business Case For an ERP Implementation

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Ultimately, every project comes down to one thing: the potential ROI. There are eight advices for developing a business case to convince executives to invest in new technology: 1. Relate the problem to the bottom line Maybe there is a hard time accessing real-time data. Regardless of the reasoning, the best way to pitch the strategy is to relate it to the organization’s bottom line. If they are continually missing deadlines, then calculate the penalties they would have to pay as a result. Sound financial reasoning with recommendation will set off on the right foot. 2. Show multiple opportunities for improvement One purchase, numerous benefits?  Most enterprise technologies touch multiple areas of an organization. This makes them a valuable investment. To strengthen the value proposition, emphasize each of the ways an ERP system could transform the organization. 3. Demonstrate long-term usability Executives aren’t just worried about today’s results – th...

Overcoming an Organization’s Resistance to ERP and Change

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It’s commonly perceived that people in general don’t like change, and ERP involves quite a bit of change. So that may explain why resistance to change is so common on ERP projects. But is there a way to resolve these change obstacles? The good news is that there are some key activities that will help minimize this type of resistance to change: 1.      Identify change agents early in the project.  These should be people that know the business well, embrace change, and are well-respected in the organization. This group of people, which should represent all the functional areas affected by ERP, will serve as champions of the project. They will also be key in helping other employees understand and learn the value of ERP and how it affects their jobs. 2.      Train, train, train.  Very few disagree that training is important. The problem, however, is that many projects tend to focus on training users how to use the new system pri...

Reasons for ERP Project cost overrun

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Those who follow the ERP industry are probably well aware of recent implementation nightmares with project costs that spiraled out of control. While the examples covered by the media are uncommon and extreme cases of cost overruns, inaccurately projecting total project costs during the planning phases is more common than you might like to think. In order to achieve a high ROI on projects, cost and scope need to be controlled, and the best way to do this is to have a clear understanding of your total costs well before beginning the project implementation. Below are some common hidden or costs of ERP projects. These items should all be considered and carefully quantified while developing your project budget. Otherwise, you may be in for some surprises once your implementation is underway. Hidden Costs of ERP Projects 1.      Internal company resources to make decisions on ERP requirements, help with system design, and perform testing. Aside from a full-t...