In this week’s blog post, ARITHMOS‘ Head of Software Development, Gaetano Giusto, talks about successful ERP implementation. An Enterprise Resource Planning tool can be a key resource for any service-provider industry that manages many projects and struggles with communication between various departments.
By Gaetano Giusto, Head of Software Development
If you are reading this, maybe you are considering implementing or upgrading an ERP in your company, and you want to avoid the common mistakes and pitfalls encountered by many other companies. Searching on the Web, you can find dozens of implementation examples, suggestions, sources and even blogs, but a lot of these sources can just create more confusion. In this blog, I don’t want to talk about numbers or statistics but focus my attention on the most relevant elements you need to implement an ERP system successfully. This is my brief list of the most important factors to take into consideration:
1) Clearly define your needs: Never leave out or hide problems, difficulties, bottlenecks. Think clearly about what you do and do not want from your new system (e.g. more productivity, new sales, increased service levels, less expenses). You can draft several lists to identify your needs, but one final list should be used for your roadmap.
2) Define your measures: The first and most important measure is time. To guarantee a successful implementation, you need to understand when each step of the process should be completed. The second measure is a short set of indicators that will be used to monitor the steps of your roadmap. They can be used not only to respect project timelines, but to also analyze the gap between your expectations and reality. All of your measures and results, including reports, have to be comprehensible and calculated based on all the people involved in the project. The last important measure is the monetary return on investment for your company.
3) Think about people: Consider how many people from your company you need to involve. In addition to planning the number of hours needed for analysis, you also need to consider training hours for learning the new ERP and the productivity hours lost with employees involved in the implementation process. This last point is very important because if you don’t factor in this consideration, your current customers may be unhappy.
4) Invest your money wisely: Implementing an ERP system could be more or less expensive than you originally planned. Calculate your intended budget with room for unexpected expenses in order to allow for a successful implementation of all the elements on your list. All elements on your list should have an assigned budget to evaluate the return on investment of each step and understand if it is economically convenient.
5) Involve Experts: It can be exciting and overwhelming to implement a new system. Before trying something new, I suggest to involve experts in the type of project you intend to do. Involving experts in project management and ERP systems can save time and money because they will usually assume the responsibilities of the project while you can focus on your customers and employees. They can also suggest time-saving and cost-cutting measures.
6) Be positive and Embrace the Change: Change can be difficult and risky, but great results can be wonderful!
Gaetano is responsible for furthering the development of ArithmosCentrum, ARITHMOS’ proprietary ERP software the manages the information flow between sales, project management, finance and resourcing for any project-oriented service provider. He brings over 15 years of experience in the IT sector and has expertise in software project analysis and consultancy for the implementation and development of business management software.
ArithmosCentrum is a unique ERP system in that it improves project governance by incorporating project management and back office tasks and linking the project plan to the budget proposal and resource schedule and is customizable for specific industry or company needs.