Previously in this series, we discussed the 6 reasons why ERP projects fail and also showed you the things you can do to avoid the problem. This second part will be about the 6 common reasons why ERP projects succeed.

So, what makes an ERP project successful? What are some best practices that you can follow to make sure your project goals are met and that your business gets the most ROI from its investment?

Here are 6 reasons:

1. Selecting the Right System

One thing that’s common among successful ERP projects is that the businesses have carefully selected the system that’s right for them. They’ve done their research and they understand exactly what their business needs are and how an ERP can help them meet those needs.

The system is the bedrock of the project – the foundation upon which your project is built. Selecting the wrong system means building on quicksand.

To improve your understanding of selecting the best system, be sure to download our free bonus report, A 20-Point Guide to Selecting and Implementing an Accounting System.

2. Building the Right Implementation Team

While the system is the foundation, the people are the drivers of the project. Whether the project is successful or not will come down to the people behind it.

You need to assemble a team of experts who understand both your business and the system you’ve selected.

A good project team should be made up of representatives from different departments within your company and experts from a reliable, experienced implementation partner or solutions provider such as FinanSys.

This way, you’ll have a well-rounded team that packs all the knowledge and skills needed to successfully carry out your project.

3. Following the Process

When it comes to ERP projects, there are usually many moving parts and factors to consider.

If you don’t have a process to follow, it will be very easy to lose track of things and make mistakes. This can lead to cost overruns, delays, and ultimately, a failed project.

This is where getting help from an implementation partner can be very beneficial. A good implementation partner will have a tried and tested process that they follow for every project. This ensures that nothing is left to chance and that your project stays on track.

For instance, there are best practices for migrating data from your old system to your new one. If this isn’t done correctly, it can lead to all sorts of problems down the road. The same goes for project timelines, budgeting, change management, and user training.

4. Communication

Whether it is getting buy-in from stakeholders, staying on the same page with your implementation partner, or keeping workers who’ll be using the system in the loop, communication is the lifeblood that flows through every successful ERP project.

Successful projects have excellent communication channels between all the different parties involved. Everyone is kept in the loop and knows what their roles and responsibilities are. This helps to avoid confusion and frustration, which can lead to costly mistakes.

In fact, if you cut off communication, you’re essentially cutting off the oxygen supply to the project. It will suffocate and die.

5. Realistic Expectations

No matter how well an ERP project does, if your expectations are unrealistic, then it’ll be difficult to see the good in it.

Realistic expectations mean setting achievable goals and milestones in terms of the time frame, budget, and scope of the project. It also means being realistic about what an ERP system can do for your business and what it cannot do.

If you go into the project with your eyes wide open and realistic expectations, then you’ll be more likely to see it as a success, even if there are a few bumps along the way.

6. Establishing an Effective Governance Structure

An ERP project can be likened to a ship sailing on the open seas. It needs a captain at the helm to make sure it stays on course and doesn’t run into any storms.

This is where an effective governance structure comes in. A governance structure is essentially a set of rules, procedures, and guidelines that everyone involved in the project must follow.

It helps to ensure that the project stays on track and that everyone knows their roles and responsibilities. It also provides a mechanism for dealing with issues and risks as they arise, allowing the project to run flawlessly and in accordance with the plan.

Without an effective governance structure in place, it will be very difficult to keep the project on course. On the flip side, if you have a good governance structure in place, it will help to ensure the project’s success.

Conclusion

There you have it, six common reasons why ERP projects succeed. If you can tick all these boxes, then you’re well on your way to having a successful ERP project of your own.

But remember, the success of an ERP project is not only about ticking boxes. It’s also about having the right team in place and making sure that everyone is committed to seeing the project through to completion.

If you have a good team and a solid plan, then you’re well on your way to having a successful ERP project. Just make sure to keep communication open and realistic expectations in mind, and you’ll be sure to set your project up for success.

Need help with your ERP project? Get in touch with us today. We have a team of experienced consultants who can help you every step of the way, from planning to implementation and beyond. Contact us now for a free consultation.