ERP Implementations can be done: Fast, Right or Cheap. Pick any Two
Sound familiar? You might have heard some version of this (well, hopefully not that bluntly) during your search for a new ERP system. There is some truth to it, but it is not as absolute as it appears. It is possible to effectively achieve all three options but it requires focus and discipline. Let’s look at all three factors in more detail.
Everyone wants to keep “Cheap” as one of the two choices, for obvious reasons. No one wants to pay any more than they have to, and this decision is no different. Let’s look elsewhere.
No one is going to eliminate “Right”. There is no compromise here, the implementation must be done with care, thoughtful planning, attention to detail, testing and more testing, etc. Data Migration, User Training, Process Documentation and Reconciliations leave no room for errors or omissions. ERP is, by definition, a mission-critical system. I am happy to hold down my own personal costs on haircuts and car washes, but not on a surgeon. Without question or exception, “Right” has to be one choice. OK, then, “Fast” it is!
“Fast” does presents a possibility, at least. For many, the search for a new ERP system is being driven either by current pain, or by an expected future pain. Somewhere in the current system, something is amiss – too much manual processing, too many errors, too many delays… Could be just one thing, but it is probably a multitude of small problems all adding up to significant pain. Knowing that the existing system is insufficient, it is the timing of the unbearable pain that determines how important “Fast” is as a factor. With the luxury of time, doing more (results) with less (resources) becomes possible. Naturally, time available varies from company to company. For too many companies, the need is immediate, and “Fast” needs to be choice Two.
That brings us back to “Cheap”. How much can be accomplished with the budget we do have? More than you realize, actually. The key is maximizing your effort, and there are some specific steps you can take to do just that:
Clear Objectives– Successfully navigating a journey requires a few basics. Knowing where you are starting from, knowing where you want to go, and knowing how to read the map! Define the goals and objectives for your project, and then keep your eyes on the goal.
Discipline and Focus– Journeys are fun, and frequently there can be many amusing distractions along the route. Don’t give in! Project and Scope creep, the expansion of the goals and objectives initially planned out, will introduce lengthy delays and costly overruns.
Project Management– We will provide a dedicated Project Manager from our team, as part of the implementation services. They are responsible for managing the budget, assigning the resources, monitoring the testing and training, and maintaining communications. For large and sophisticated projects, you should consider assigning your own internal PM, the counterpart to ours. The responsibilities are critical, and have clear impacts on timing, costs and success.
Clean and Cleanse– Moving to a new ERP System is a great opportunity to clean and cleanse – historic data, existing processes, and old attitudes. Bring with you only that which is vital and necessary. The result is a streamlined system, focused on the current and future needs of the company, not supporting the past.
With proper planning and continuous management, it is possible to implement a new ERP system, and hit all three goals: Right, Fast and Cheap (with Costs kept to a minimum).
By TMC, your Southern California Dynamics GP partner