One of the biggest problems that many have had with implementing an ERP is misunderstanding what the ERP is all about and underestimating what it takes to effectively implement the same.

From the boardroom to the stockroom, all members should be clear of their respective roles and responsibilities for implementations. The question of when, how and who will be held responsible for the results must be a vital part of this understanding.

The CIO should start by defining the business strategy that will give a competitive advantage or at least make it competitively equal. The analysis of the current business processes and building the organization objectives can begin after this.

Before the nitty-gritty of software selection, it is a good idea for management to understand the current strategy, processes and supporting systems in comparison to what they could be with the new system. This exploring process should be performed every few years to evaluate opportunities.

Many people plainly ignore the examining exercise and jump blindly into looking at software functions and features. Software vendors often induce this as all they want is to get over with their individual sales cycle quickly. The CIO should be aware of such superficial guarantees that further bewilder the selection process, especially for the first time future users.

As the ERP software vendors have the most talented sales force to convince the management, they try to sell their version of the best solution to the organization problems. All CIO’s should be vary of the same. Therefore, always start defining software needs by analyzing the current processes that govern the flow of information. This is often omitted, but will help a lot in the long run while selecting the right ERP software.

The CIO should have a comprehensive complete methodology to assist throughout the selection process. However, this should not be mistaken with lengthy predetermined questionnaires that are vague and beat around the bush.  It only means that the evaluation and selection process should be based on one’s own business model and strategy. This enables potential savings as well as the most central advantage-making no mistakes.

The misconception that an ERP is purely a technology driven project since it involves the software could not be more wrong. This is the root cause of most ERP failures. The IT function is not comprehensive enough to figure out the various business implications or to determine their impact on day-to-day operating results versus strategic intent. These decisions are exclusive to the senior management and the CIO should ensure that is kept that way.

When deciding who to elect as the company’s ERP Project Manager, there are a number of things to keep in mind. First, look for an individual who is an excellent and dedicated problem-solver. If you’re talking to an experienced manager, ask for detailed stories of actual projects, and how they handled specific situations that came up along the way – such as a team member not meeting a deadline. How did this affect the overall deadline, and how was this information relayed to the stakeholder? Ask the tough questions, and be specific. This will give you a sense of their intelligence, attitude and commitment.

Some basic preparation before ERP implementation:

• Create a Project Management Office (PMO)
• Set precise customer prospects
• Organize risk analysis and a contingency plan
• Estimate change management requirements
• Evaluate project environment before making any plan e.g. taking events in the organization, such as holidays, labor agreements into consideration
• Hardware preparation availability of infrastructure, power, internet connectivity before start of the project
• Define the KPIs (Key Performance Indicator) for the project
• Settle on standard project documentations and procedures – communication plan, project charter, plan, scope, etc.
• Weigh the assumptions, eliminations and restraints mentioned in the proposal

Conclusion:
Amongst the most important factors for the success of an ERP project is top management commitment and support. Leadership is ranked the number one facilitator of large transformation efforts, such as ERP implementation.

The CIO support extends to include, an understanding of the capabilities and constraints of the proposed system, setting goals and communicating the corporate IT Strategy to all employees.