Enterprise resource planning (ERP) systems are the lifeblood of modern, complex manufacturing businesses; they are the ideal system of records and, quite often, the only reliable source. In most companies, an ERP system is implemented in order to improve business performance, ensure compliance with legal regulations and increase work productivity.
As a general rule, NetSuite Implementation projects starts because a change in business processes and, in many cases, this change can be substantial. It is always difficult to make a change in any company, but when it comes to a change of this magnitude, it can be especially difficult to install. Ultimately the success of the implementation depends on the changes being adopted and accepted by employees at all levels.
How to avoid wasting resources
An independent report indicates alarming statistics. According to Gartner, between 55% and 75% of all ERP projects are projected not to achieve all project targets. It is truly worrisome if you take into consideration the investment level at which too many projects do not meet the expected targets. Why should too many businesses struggle, considering the conscientious selection of an ERP solution? All of them adopt the ERP method rapidly and get to use the solution. As a consequence the necessary preparation measures for progress may be disregarded. The key is to obtain quantifiable market objectives. There is the risk that this will not be achieved from the beginning unless a strategy, well-defined plans and agreed architecture have been adopted and accepted by the company.
More and more companies are turning to independent NetSuite app with change management skills to enhance the success of their implementation projects. Consultants offer experience and best practices that increase the likelihood of completing the project on time, on budget, and on target.
Consultants expose roadblocks to change management
In order to incorporate an ERP framework, improvements are required and its aims are to strengthen business processes. These adjustments should help the company’s wider business priorities. Following a good practice is essential to determine the market effect on staff, technology and related systems as quickly as possible before implementing new business or new innovations into a firm. In this way, best practice is crucial.
Consultants provide methods for analyzing holes in current systems and for designing schemes based on existing (“how it is”) or planned (“how it should be”). This move helps leaders to consider possible initial pitfalls which may include market interruptions, incurred expenses and a number of other impacts. With this in mind, they will decide if the organization is ready and willing to adapt. The project team has even the chance to make improvements to reach a more reasonable degree of effect before the processes are developed if the scope envisaged is too ambitious. Such an overview will help to manage the development project and provide the basis for potential progress.
Prepare to adapt, or prepare for failure
In Gartner’s opinion it is projected that the ERPs are shipped late or over budget between 20% and 25% and do not produce the intended benefits or are ultimately abandoned. As if this is not enough, it has also been identified that between 50% and 60% of initiatives are viewed as in some way compromised; in general terms because the profit was deteriorated or because the intended benefits did not work.
Studies in the sector have found that in most situations poor monitoring of related market transitions is a major factor leading to the “failure” of the project. Training should hopefully commence and continue throughout the project until implementation. In the first month only 20 percent of what is learnt is remembered if it isn’t consciously reviewed. The retention of new information is significantly lower for many people only once they’ve received it. As this teaching is consolidated, the degree of maturity increases with the assimilation of new knowledge. The expertise and tools of an experienced ERP consultant help people respond to the new approach and associated procedures.