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ERP II-Best practices for successfully implementing an ERP upgrade.

ERP II-Best practices for successfully implementing an ERP upgrade. Beatty, R. C., and William, C. D. 2006. Communications of the ACM, 49:3, 105-109. Introduction.

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ERP II-Best practices for successfully implementing an ERP upgrade.

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  1. ERP II-Best practices for successfully implementing an ERP upgrade. Beatty, R. C., and William, C. D. 2006. Communications of the ACM, 49:3, 105-109.

  2. Introduction • A study of mid-size to large companies found that 67% of these companies are implementing some form of ERP while other 21% are evaluating potential of ERP system solutions. • Enterprise application market is expected to grow from $47.8 billion in 2004 to $64.8 billion by 2009.

  3. ERP initiatives • Organizational push- Many organizations are looking to expand the capabilities of their systems by integrating new modules, or add-ons into their core ERP system implementations. • Organizations are looking to explore new avenues to further utilize their ERP systems

  4. ERP initiatives • Vendor Pull: Organizations are being persuaded by ERP vendors to upgrade to newer versions or releases of their applications suites. • Average time between software upgrades has reduced from 3 years in early 1990s to 18-24 months today.

  5. ERP Implementation • Some ways to succeed while implementing ERP system upgrades are • Build your business case on a newfunctionality-organizations must stop using cost savings as their sole motivation and instead focus on selling the business benefits to be gained by enhanced functionality.

  6. ERP Implementation • Treat the upgrade like a new project-Manyorganizations underestimate the time and resources required to successfully complete the project. • Organizations that fail to treat the upgrade as a new development project invite disaster

  7. ERP Implementation • Keep the team together-Organizations should make every effort to have the same team of key employees who planned and implemented the firm’s initial ERP system. • This is a business project, and not an IT project-The time required to successfully upgrade the system shifts to business units. The reason for shift in hours from IT personnel to business personnel is simple-system ownership.

  8. ERP Implementation • Watch for hidden infrastructure costs-Manyorganizations think that vast majority of their ERP upgrade project costs will be software and labor related

  9. ERP Implementation • Un-customize customizations-During initial implementation of an ERP system, many organizations choose to customize the standard ERP software modules to meet implementation dates and to match unique business requirements. • Many organizations make the mistake of over-customizing their application modules in an attempt to appease end-users of the system.

  10. ERP Implementation • Test like your organization’s future success depends on it • Do not skimp on training

  11. Conclusion • ERP upgrade project can be complex. • Organizations should remember that ERP II project implementation should be done following the eights steps that have been recommended in this article.

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