Step by Step Hacks to Execute your ERP Project in Time, in Scope & in Budget
Regardless of the job role, IT executives at some point, are faced with the task of executing an ERP project within a set timeframe and budget. While it all seems easy, as we go further and further into the project processes & methodologies, achieving success within a set timeline and budget can turn into a distant mirage. Recent research performed by the University of Oxford shows that 32% of the ERP Implementation projects cost much more than initially planned or get extended over time!
To understand exactly how we can ensure ERP project success, it is crucial to first understand the basics of project management, which implementation methods to use, and how we can use these methods to our advantage. Why? Because our ERP implementation depends heavily on it.
Project Management, in simple terms, can be defined as the use of skills, techniques, specific knowledge and tools to deliver something of value to people. There are many different project management methods, but not as many as there are different company cultures. On top of this, companies tend to have their own specific business processes grown organically over time.
When a company wants to implement a new ERP system, investigating which solution is best and/or tweaking that solution until it fits the company’s requirements is the right way to go. So why is it then that we rigidly use one project management method rather than finding the method that best aligns with our requirements and then molding it so that it fits like a glove.
With the above said, let us jump into the 3 hacks on how we can improve our ERP project management techniques to ensure successful execution of our project:
A. Incorporating an efficient implementation method for your project management: A well-rounded implementation method can allow your ERP project to be more standardized & structured in its processes, and well organized in its work methods. This means that the success of your project to a substantial extent depends on the implementation methodology that you choose to execute your projects with. In a nutshell, having an effective methodology, if applied well, facilitates efficiency within your project and reduces redundancy.
Applying an effective methodology can lead to the following advantages, such as:
- Having a well-organized project timeline
- Having the right tools to estimate times and costs correctly
- Reduced project risks
- Improved cost-benefit relationship of resources
- Enhanced team skills
B. Selecting the right project management methodology that synchronizes well with your ERP project: While all implementation methods are meant to be efficient, not all of them are. Nor could they be a right fit for your ERP project. ERP is a vast field and every project within it is different. For example, an ERP project revolving around the execution of Dynamics 365 F&O, is different from an ERP project that involves the implementation of Dynamics CRM. These projects may differ from one another in terms of budget, risk involved, scope flexibility, timeline, and the level of client involvement. The key here is to recognize that there is no one key methodology that fits all, so one must analyze and select the implementation method that best fits one’s project.
C. Customization of the Chosen Implementation Methodology: Do not be afraid to mix and match certain methodologies if none of the standard methods seem to work well for you. Standard methods like the Waterfall method, the Agile method, the Kanban method, and the Six Sigma method are fine in theory, but will they work in action? At Quantum Omega, we discovered that none of the standard methodologies seem to work well with the culture of our customers, their goals, and business processes. So, what did we do? We mixed the best of FastTrack, Sure step and our Quantum Culture to create an Advanced Sure Step Methodology, that is efficient, transparent, reduces workload and is flexible. At the end of the day, we manage to help our customers experience a smooth ERP implementation project with the delivery of their Go Live in scope, in time, and in budget. For us, this isn’t just an exciting question, but just another day.
In summary, the success of any project largely depends on these 3 hacks starting with:
(I) The decision to incorporate an implementation methodology into your ERP project,
(ii)Evaluating which of the implementation methodology(s) is the right fit for your ERP project and
(iii) Finally customize your chosen methodology(s) to ensure that it is well aligned with your ERP project scope, budget, and timeline!
The above steps will enable you to create a customized implementation method, characterized by an adapted focus and transformed in line with the company’s culture, ensuring that your ERP projects are executed seamlessly.
Have you tried these steps to ensure success in your ERP projects? Do you have more best practices to share?
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