Experience matters when it comes to ERP implementation.
A cloud ERP implemented correctly can digitally transform your business and bring a level of efficiency and operational flexibility that just isn’t possible without it. But implementation can also bring risks when not handled properly.
A case in point is shaving products unicorn, Harry’s. The fast-growing consumer products manufacturer had a quality SAP backend in place, but it wasn’t implemented well. So the company had constant struggles with the system and was almost ready to throw in the towel.
“We told SAP that we needed somebody good [to help] or we're done with the product,” says Christopher Beck, who was global head of IT for Harry’s at the time. “So they gave us Navigator.”
It wasn’t the cloud ERP that was the problem; it was how the system had been set up and configured during its initial implementation. So we were able to clean things up and turn a systems liability into an operational advantage for Harry’s.
“A lot of the items that people were dissatisfied with weren't necessarily because of the product itself,” notes Beck. “It was how it was implemented.”
So as you go into cloud ERP implementation, here are some key ways that you can reduce risk during rollout.
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Reducing Migration Risk
Garbage in, garbage out. A risk when implementing cloud ERP is crippling the new system with bad data during migration. Duplicate, incomplete, and inconsistent data can lead to reporting errors, failed automations, and user distrust in the system. Partial data migration can also kill cloud ERP adoption by encouraging the use of spreadsheets and pre-existing systems.
- Create data governance rules prior to implementation. At the start of your cloud ERP project, go through a discovery process to understand the full scope of business data at your organization and define how it will be handled within the new system.
- Clean business data before migration. Format and fix messy data during export from your legacy system, not after it has been imported into your new system. Start clean, don’t bring bad data forward.
- Begin data cleansing early. While data import will happen later in the migration process, start the cleaning process early because it will take time. You don’t want to rush or skip the data cleaning process.
- Use data migration tools available from your ERP vendor. All cloud ERP solutions will come with vendor tools for cleaning and importing legacy data. Whenever possible, use these tools instead of relying on bespoke data migration processes.
- Thoroughly validate all data before go-live. Migration doesn’t stop when the system is configured and data has been imported. A crucial step before go-live is testing and validating that the right data is showing up in the right places during pre-launch testing.
Reducing Integration Risk
One of the most challenging parts of ERP implementation has historically been system integrations. Poor integration limits automation potential, cuts down on operational visibility, and slows down ERP implementation, among other problems. The difference between an effective system and one that doesn’t live up to its potential often comes from problems with system integrations.
- Choose a cloud ERP with a large third-party support and integration ecosystem. A vast community of support and pre-built integrations helps your business solve integration challenges much more easily. When you need integration help, you’ll be glad there’s a robust third-party ecosystem so you don’t have to reinvent the wheel.
- Lean on pre-built integrations. Look for pre-built solutions for common integration scenarios. Avoid custom integrations whenever possible, both for speed and reduced development headaches.
- Select a support partner with deep integration experience. A good implementation support partner will both know how to set up common integrations and be ready with solutions and workarounds for more challenging integration scenarios.
- Allocate adequate time for integration work. When planning your implementation, make sure your roadmap includes plenty of time for integration development and testing. You don’t want to rush the integration phase.
- Start with critical integrations first. Everything will connect with your cloud ERP, but not every integration is mission-critical. So prioritize key integrations first, then circle back on the integrations that are helpful but not strictly necessary.
Reducing Adoption Risk
Even the best cloud ERP fails if employees don’t use it. Change management is an important but often missed aspect of a good ERP implementation. Don’t short-shift the process of bringing employees on board and creating buy-in, or they will work around the new system and fail to fully use it.
- Sell it as organizational change, not an IT project. Make employees understand that the new system is not really about software; it is about process and new ways of doing business.
- Emphasize how new processes will make the company better. Use executives and key stakeholders to drive home the point that cloud ERP will make work easier and more efficient. The new system is about business growth and better operations for all involved.
- Build awareness and excitement early. Communicate ERP project status early and often among employees. By signaling that change is coming and it will make work easier, employees will already start to prepare and make the mental shift before they actually begin using the new ERP system.
- Include lots of training in the roadmap. Plan meaningful initial and ongoing training as part of implementation. Training should not stop at rollout; make sure you have ongoing employee education programs in place both to cover new hires and so existing employees stay sharp with systems and processes.
- Create incentive programs for early adoption. Encourage adoption and new process wins by putting in place programs that reward employees for embracing the system. These can be financial rewards or just recognition, but make sure you celebrate and encourage new system and process adoption.
Avoid Implementation Risk with a Trusted Partner
We’ve been helping businesses avoid ERP implementation risk and deliver better outcomes for more than 20 years as an SAP Gold Partner. We specialize in cloud ERP implementations that are on time and under budget.
So if you are considering a new cloud ERP, or your company’s business processes do not perform as they should, contact one of our experienced consultants for guidance and more information on how to achieve a pain-free ERP rollout.
You can reach us by calling (801) 642-0123 or by writing [email protected].