ERP BEST PRACTICES 1

Kelly Buchanan

Seminole State College

ERP Best Practices

Dr. Calloway

July 05, 2015

ERP BEST PRACTICES 2

TABLE OF CONTENTS

I. Executive Summary

II. ERP: Best PracticeA. Vendor ReferencesB. Start with WHY?C. TrainingD. Plan for Maintenance: After the thrill is gone.E. ERP Cloud Solution: It’s here!

III. Conclusion

IV. References

ERP BEST PRACTICES 3

EXECUTIVE SUMMARY

Implementing an ERP system is among one the most expensive investment an

organization will make. Not only are these systems expensive, but they are complicated,

complex, and extremely time consuming. The likelihood of project delays and being over project

budget are very common in this ever changing industry. Moreover, the phrase “Murphy’s Law”

is certain to show its tormenting head saying, “whatever can go wrong will go wrong.” “Many

studies estimate that as much as 70% of enterprise system implementations result in serious

difficulties, ranging from lost sales, crippling of internal functions, loss of competitive position,

and in a few cases, outright bankruptcy. Not to mention damage to promising careers.” (Deis,

2014). This paper reviews five best practices that provide a road map of critical stops that

companies should slow down and consider. These best practices include: Obtaining Vendor’s

References, Starting with WHY, Training, Plan for Maintenance, and Researching Cloud

Solutions.

BEST PRACTICES

Vendor’s References

The first best practice is obtaining the Vendor’s References. In my opinion, this is a

critical step in the evaluation process and shouldn’t be overlooked. An organization has to do

their due diligence and conduct research on ERP vendors. It is important to not only have a good

product (ERP system) but also a good partner. Organizations should ask the vendor for customer

testimonials and referrals. In addition, by contacting vendor’s prior customers and asking

questions such as: “If you had to do it all over again, would you still choose ABC vendor and

ABC ERP’s systems? What do you appreciate about ABC vendor? Describe the quality of

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work? I would suggest the project team prepare a series of questions which will help in the

decision making of selecting the best vendor. The goal with contacting recent customers is to get

open and honest feedback which will be essential in selecting the right ERP Vendor.

Starts with Why

The second best practice Starts with Why. Specifically, why is the organization

implementing a new ERP system? “To ensure this change is accepted, there has to be a

commitment from top management, reengineering of the existing process, integration of the ERP

with other business information systems, and training of employees on the new system.” (Prasad

Bingi, 2005). From the customer’s perspective, it’s critically that everyone in the organization

from the executive leadership team to the business users understand the WHY behind the new

ERP system. Why is the organization purchasing a new ERP system? How will the ERP system

make a difference in the daily operations and processes of the organization? What are the overall

benefits of the ERP systems? Will the ERP system actually help executive management make

better decisions? The sooner everyone is on board and understands the benefits of the ERP

system (WHY) the smoother the installation process as well as a stronger commitment to get the

job done. Most importantly, “gaining executive and organizational commitment is a

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distinguishing trait that demonstrates an organization has full support and commitment from the

company’s executives.” (Best Practices for ERP Implementation, 2014)

Training

The third best practice is Training. Training employees is critical, and the sooner

training begins during the implementation process the more successful the “Go Live” phase will

be. “Failing to properly train users on a new ERP system will ensure the failure of the ERP

implementation project.” (Knapp, 2014) Training all employees from the executive leadership

team, IT team, business team, and the administrative staff is clearly money well invested. “ERP

implementations don’t just affect systems and business processes; they also involve people who

may find it difficult to change roles, processes, and behaviors that they have learned over many

years of work.” (Staley, 2014). Moreover, this training ensures employee confidence and

commitment to the new system. In addition, if users feel confident in the new system and

experience the benefit of the new ERP system, they will more than likely adopt the new process

and accept change in a more positive way.

Plan for Maintenance

The fourth best practice is Plan for Maintenance. After the thrill is gone, “The

development of a postproduction support plan and process is as important as any set of activities

outlined during the development phase.” (luvai F. Motivwalla, 2012, page 199). Included in the

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postproduction plan are resources for maintaining the ERP system. Maintaining an ERP system

with adequate resources will extend the useful life of the system. Failing to provide this support

will inevitable result in frustrated employees and a slowdown of processes and/or lack of

productivity. The benefit of this best practices ensures the system is doing what it was designed

to do which is making the business more efficient.

Cloud Solution

The fifth best practice and alternative that can no longer be overlooked or discarded

despite the fact of security issues is Cloud Solutions. It’s here, it’s an option; and from a

competitive perspective the cloud train is moving fast. “The cloud, thanks to users gaining

confidence in its security and reliability, is working on some strong momentum.” (Gaudin,

2014). In addition, and after my research it is clear that the cloud market is still immature in

terms of security, however many companies are starting to experiment and trust such cloud

vendors as Oracle, Microsoft, Salesforce, Google, IBM just to name a few. According to

Technology Business Research, the private cloud market is expected to grow 35% in 2015, and

the public cloud is expected to grow 25%. The benefits and solutions of cloud-based systems

means companies don’t have to make expensive upfront investments in IT hardware and servers,

nor do they have to hire employees to manage these resources. “Most importantly, with cloud

technology, product enhancements are painless and customizations and integrations

automatically update with system upgrades.” (Staley, 2014). So essentially, it is in the best

interest of organizations to seek out best practices in choosing the correct ERP Cloud Solutions

and determining what type of ERP Cloud Solutions would be a good fit such as: public, private,

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or hybrid solutions.

CONCLUSION

In conclusion, there are a plethora of ERP Best Practices on blogs, scholarly journals,

websites, and books. The key takeaway here is that best practices can be a very useful starting

point for organizations looking to implement an ERP system, and serve as a road map that has

guided many organization throughout the implementation process.

Most interestingly, I was overwhelmed with the tremendous amount of information that

is available regarding ERP systems and best practices. There was one reoccurring thought that

lingered while I researched and read articles about ERP Best Practices. I must confess with

vulnerability and embarrassment: I missed the ERP revolution. I can relate to Thomas Freidman,

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the author of “The World Is Flat” in that, “while I was sleeping, the world entered into the ERP

globalization revolution.” (Thomas Freidman). This class project and research have opened my

eyes and confirms, “What we see depends mainly on what we look for.” (John Lubbock). I will

continue to look in a new direction, one that is filled with great ERP opportunities.

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REFERENCES

Best Practices for ERP Implementation. (2014, 4 10). Retrieved from www.mmh.com/wp_content: www.epicor.com

Deis, P. (2014). Enterprises System Implementation Best Practices: A Guide To Risk-Free Implementations. Lexington.

Gaudin, S. (2014, December 18). Hybrid Cloud Adoption Set For A Big Boost In 2015. Retrieved from Computer World: www.computerworld.com

Knapp, B. (2014, April 29). 6 ERP Implementation Best Practices. Retrieved from Socius1.com: www.socius1.com

luvai F. Motivwalla, J. T. (2012, page 199). Enterprise Systems for Management. New Jersey: Pearson.

Prasad Bingi, M. K. (2005). Critical Issues Affecting an ERP Installation . Information Systems Management, Vol 6, Issue 13.

Staley, W. L. (2014). ERP Lessons Learned. New York: Affinity Systems.