ERP software vendors and implementation partners tend to project an ERP solution as the magic pill that can fix business problems and inefficiencies. However, they are prone to overlook some crucial aspects that may impact the success of an ERP implementation leading to scope creep, timeline and budget overruns, poor user adoption and ultimately, a disillusioned and dissatisfied customer.
According to Gartner, ERP implementation failure rates can exceed 75%. Meanwhile, the global consultancy firm McKinsey & Co. estimates that more than 70% of all digital transformations fail.
Why is the success rate so abysmally low? ERP systems have been around for more than four decades. While the solutions have evolved functionally and technologically, only one in four companies still seems to get it right the first time.
A comprehensive post-go-live audit of a failed ERP implementation may throw up the following factors, in no particular order:
Poorly defined and incomplete business processes, KPIs, and business data
Poor ERP solution fitment (standard vs. customization)
Unavailability of key customer personnel during the implementation
Poor change management (process and people) and user training
Inadequate project governance (by both customer and implementation partner)
ERP implementation partner not deploying the right consultants
Poor effort, time, and budget estimation by the ERP implementation partner
In this blog, we will be focusing on the first factor, I.e., poorly defined processes, KPIs, and data.
A professional ERP consulting partner is expected to take a holistic view of the customer’s business processes including:
The above requires a 360o perspective complemented with relevant industry knowledge from independent ERP consultants like Entapp. We’ll talk about the approach that sets Entapp apart from other consultancies.
Assessing the Problem
Most consultants approach business owners requesting them to describe their pain-points. Business owners tend to elaborate only on the most pressing issues prevailing at that time. Moreover, they may be aware of other challenges but aren’t able to give sufficient attention to their resolution. They may also be cognizant of the need to resolve some of these challenges using tools and automation but do not know where and how to begin.
At Entapp, our consultants are committed to helping business owners organize and facilitate ERP transformation with our deep domain expertise, our proprietary management consulting tools, and governance methodology. This has been established through our rich experience gained over 100+ successful ERP engagements spanning three decades.
Our Approach
Entapp’s repertoire of consulting engagements has helped us identify some of the common business challenges encountered by customers. We kick-start all our assignments with a set of structured and relevant queries that we ask the business owners. This form of consultative dialogue enables a fruitful and focused exchange of information regarding the current state of their business.
The key aspects of our knowledgebase are:
End-to-end business process flows / mind maps with clearly identified cross-functional dependencies.
Data and document templates
Key Performance Indicators (KPIs) across all levels of the organization
Organization Structure and RACI Matrix
In recent years, ERP projects have seen a significant change in their approach wherein leading ERP product vendors have diluted the systems requirement gathering phase. They believe that their platforms address most if not all the variants of business processes across industries. These ‘commonalities’ have been grouped into what is now known as ‘industry best-practices’. This has also helped ERP implementation partners reduce the overall implementation timelines.
While we appreciate the need to ‘standardize’ ERP implementations, we also believe that every implementation will have customer-specific business processes that the ERP solution needs to accommodate even if it necessitates customization.
Entapp’s role as an ERP consultant is to:
Impress upon the customer to adopt the standard business processes pre-configured in the chosen ERP solution as much as possible and at the same time,
Empower the ERP implementation partner with clearly identified customer-specific system requirements for appropriate customization.
The above approach reinstates the significance of the system requirements phase of the ERP project, thus increasing the potential rate of success with respect to scope, budget, timelines, and customer satisfaction.
In our next blog, we will be touching upon Entapp’s proprietary approach, the REACHTM Program. You may visit our website www.entappconsulting.com/services for more.
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