What are the 5 keys to ERP project management success and its functions?
ERP (Enterprise Resource Planning) management involves using software to manage the integration of different business functions, including resources such as cash, production capacity, and raw materials, and commitments such as purchase orders, orders, and payroll. ERP involves integrating business activities such as purchasing, production, manufacturing, marketing and sales, materials, inventory, finance, and shipping.
Five keys to implementing ERP successfully include the following:
- Critical functions need to be identified. An organization should focus on the functions that are most important for their business, including functions that are critical to customer satisfaction and to securing their place in the market, rather than concentrating on all functions.
- An ERP project has to be headed by a function-led department. In other words, it must be led by a core business function that is important to the company's success and return. However, this department must also work with the IT department to ensure the successful implementation of the project.
- An ERP implementation must have the right leadership. The leadership team must direct the successful implementation of the project and be committed to change management. The Project Manager should be experienced in implementing this type of project and should develop a realistic timetable for its completion as well as a realistic estimate of the resources needed to complete the project.
- Change management is a vital part of an ERP project. People must be committed to changing their roles or changing the procedures and processes of the company for the project to meet with success. Key stakeholders have to buy into the success of the project. The Project Manager is critical in communicating with people throughout the process and assessing their readiness for change.
- People involved in the project must have the right training and support to critically examine their roles and the reasons behind why their areas function as they do. They need to understand the functions of their area and be willing to change them if necessary.