The seven deadly sins have been used as a guideline to caution humanity against its inclination to do wrong. Unfortunately, the same guidelines seem nonexistent when organizations experience the stress of selecting and implementing a new ERP solution.
How can an organization avoid committing ERP sins? Companies can utilize these guidelines to avoid common pitfalls and ensure success:
Lust and Envy: Desiring What Other Companies Have
A common question company executives ask when selecting an ERP is, “What are leading companies using?” While this information can be used to short-list alternatives, it should not drive the final answer. Many E&P companies jumped on the SAP R3 (now ECC) bandwagon, following what the major integrated oil and gas companies implemented. Eight of the 10 mid-sized E&P companies surveyed regretted the decision. SAP ECC is designed for large, complex organizations. Other cost effective, fit-for-purpose solutions could have been selected and implemented to support critical requirements. These organizations paid the price for falling under the spell of lust and envy.
Gluttony and Greed: Wanting the ERP to Do Too Much
ERP systems have been developed to provide functionality that supports a broad range of processes. Companies can grow distracted with non-business critical functionality during the evaluation process. ERP vendors often demonstrate intricate dashboards with flashy bar charts of non-relevant KPI’s. The time used to display colorful charts should have been invested demonstrating how the system supports critical needs. Companies should spend more time focusing on what’s important, not the glitz and glamour of the ERP solution. Companies lose sight of the critical objectives because of gluttony and greed.
Sloth: Lacking Participation
Invariably following selection, someone declares, “Wait, what about my requirements?” Successful organizations ensure participation by communicating project objectives and expectations upfront. Surveys show that ERP teams who communicate beyond the “what” and share why the company is going through ERP selection garner 80% more engagement from stakeholders. By empowering the organization’s staff to define the company’s future state, the company encourages stakeholders to view the ERP as an opportunity for improvement as opposed to a burden. Involvement and engagement take the place of sloth.
Wrath and Pride: Resisting Change
Companies are often eager to share a laundry list of pain points with the current system, yet cling to the same system to avoid change. Over the years, employees invent complex manual work-around processes, and often become stubborn and prideful when asked to change behaviors and consider alternatives. Successful ERP project teams understand the importance of change management in achieving project objectives. They bridge the gap between current and future state and effectively drive change to ensure ERP success.
Trenegy helps companies successfully select the right ERP by avoiding the common pitfalls of ERP selection.