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You Have Implemented ERP - Now, How Do You Extract The Promised Value
You Have Implemented ERP - Now, How Do You Extract The Promised Value
You Have Implemented ERP - Now, How Do You Extract the Promised Valu
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You Have Implemented ERP - Now, How Do You Extract the Promised Value?
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Happy New Year! We hope you re kicking off 2012 with a commitment to continued ERP success. In 2011, we largely focused our written content on ERP selection and ERP implementation best-practices. In the context of an ERP system s lifecycle, these phases represent an organization s platform and preparation for enhanced business value. The delivery of actual business value and return on ERP investment - happens later on in an ERP system s lifecycle, during the post-implementation optimization phase. It s during post-implementation optimization where organizations should be looking to leverage ERP-driven benefits of integration, transparency and automation. The following graph shows a fairly typical scenario for a high performing organization that s committed to post-implementation optimization.
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The benefits first start to accrue once the organization successfully integrates the system into its business processes. This happens when the users finally accept, adopt and become comfortable with the new, ERP-supported business processes. From that point onward, these best-in-class organizations accelerate benefits realization as they continuously review, revise and improve their business processes (leveraging, of course, their ERP system capabilities). Although most companies never experience the steep part of the value realization curve, almost all are capable of doing so provided that they ve successfully implemented ERP. Of course, the obvious questions are: how does an organization do so? And, where should it start? To answer the first question, a business has to focus on continuous improvement. That means constantly benchmarking performance, setting new goals, driving improvements and evaluating performance. The second question is answered below.
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You Have Implemented ERP - Now, How Do You Extract the Promised Valu
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1/13/12
You Have Implemented ERP - Now, How Do You Extract the Promised Valu
The first and formost challenge that post-implementation ERP Project manager has to is to ensure retenation of the core members of the implementation phase. Th e attrition can be in the form of people leaving the oragani tion as well as people reverting back to thier pre-ERP roles. The first one is simpl because the people trained during implementaion ground are most obvious source of trained men power for the organi ations for whom ERP is core business. The second one normall happens because the line managers still consider ERP as one of add-on s stem, neccessiated beacuse of the organi ation changes, but not an aid for better information source and more useful tool to aid in decision making. Thus, ERP implementation memeber ma find it better to join his/her original role for better career. At the core is the fact that man organi ations do implement ERP have et to impart equal value to information - creation, sharing and utli ation. These organi ation would have made ver cosmetic changes in their thier processes during implementation of ERP.
Sub mitted b admin on Fri, 2012-01-06 11:31.
Hi Ashok, Thanks for another valuable comment. Super user attrition is certainl a challenge. Here are a couple of wa s to mitigate those risks: 1) As ou mention, create appropriate incentives and rewards to retain the right people in the right positions; and 2) Establish appropriate succession planning to mitigate attrition-related risks. Happ new ear, Jonathan
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