Difficulties with transferring large organisations to new ERP systems: what are some common issues faced (or expected) during this transition, common mistakes to be avoided as well as general approaches that can be factored in?
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Sr Solutions Architect in Healthcare and Biotech9 months ago
Start conversations about data migration from the legacy system to the new system ASAP. Ensure stakeholders have stringent requirements around parameters needed on the data transfer and that there's a staging environment so that the users can interact with a subset of the data from the legacy system in the new system UI so that process continuity is guaranteed and risk is mitigated.Other Manager9 months ago
1) Master data hygiene. The uglier your data and greater the number of legacy systems you're trying to integrate, the harder your life will be.2) Develop an organizational allergy to customization. The more custom configs you allow, the greater your challenges down the road.
3) Get all the bids, both from the platform vendors and the professional services/integration vendors.
4) However many years you think it will take, add 2, at least. Better yet, add incentive comp into the implementation contract for early milestone achievement.
5) References; References; References. Consultants will promise the world in the interview. What's the actual experience working with them like? Are they accountable? Are they knowledgeable and specific? Or do they evade with general platitudes?
Engineering Manager9 months ago
The ERP is multi-phase project which includes re-designing business process to take advantage of new system capabilities, configuring software, migrating organization's data and training users. This might take few months and can take up to an year for large organizations.Few key ERP transition challenges:
1) Project Management: This has multiple phases mainly discovery and planning, design, development, data migration, testing, deployment, support. Every phase brings critical tasks and to stay on track which requires meticulous project management. This also requires participation from all the groups that will be involved in developing and using the system. A strong project and people management includes setting realistic expectations, time frames, milestones along with timely two-way communication, is critical for successful transition.
2) Project Planning: Organizations often underestimate the time and budget necessary for a successful implementation. One of the most common causes of budget overruns is scope of the project. Developing a clear and realistic plan from start can help to avoid those issues. A realistic project plan that acknowledges possible speed bumps and minor cost overruns and addresses them in advance will simplify that decision-making process and keep the project on track.
3) Data Integration: ERP provides a single, accurate source of data for the whole organization. The key step for ERP transition is data migration which typically involves moving data from multiple older systems to ERP database.
4) Data quality: Organizations can have multiple data sources; it can start migrating to ERP system. But that may involve serious data hygiene exercises. Because multiple departments interact with same customers, orders that organizations often have duplicate data in their systems. So, data quality involves validating cleaning of redundant data. Also, new data should be thoroughly tested before going live with ERP systems.
5) Change Management: This involves more than just switching to new software system which typically overhauling business processes to take advantage of the efficiency and productivity improvements possible with the new solution. This requires a shift in mindset and a change in everyday work processes for many employees in the group.
Common Issues and how to refactor/address:
1) Resistance to change can be a formidable roadblock; getting sufficient time from leadership and stakeholders across departments very early in the implementation process is crucial to a successful ERP transition.
2) Costs Overruns is another major common issue in ERP transition. ERP projects are infamous for sailing past budgets after the implementation started. Many organizations underestimate the amount of work required to move to a new business system, and that results in spending more money than expected.
When internal resources are low, businesses require software vendor's service team or other third-party consultants. This is very much required if solution requires more customization to meet organization needs.
Data migration is also a budget breaker which represents 10-15% of overall project cost.
Training cost for the users is another expense to consider.
3) Continuous improvement is another challenge for ERP implementation. It is not a one-off effort that ends when the new system goes live. The solution must continue to evolve to support new business demands and technology.
The project team needs to continue to manage the project after deployment, fixing issues and supporting new requirements as they come up. Business often use ERP for a decade. so, it’s imperative to perform a periodic review to assess whether the system is still meeting the organization’s needs or hindering the business.
IT Manager in Construction9 months ago
I replied to a topic alike here:https://www.gartner.com/peer-community/post/i-am-reaching-to-community-insight-advice-organisations-look-to-move-migrate-core-business-erp-to-another-larger-companies
Pretty strange... Anyway I just make a mirror here 😊
Hello,
I do agree, not at all a daily routine but with a good project management activity it can be achieved.
The first question is about the platform: are you migrating hybrid ERP or both are Cloud-based?
As general guidelines, I do agree with:
Comprehensive Planning: Developing a detailed project plan is crucial for a successful ERP migration. This plan should include all stages of the migration, from data transfer to user training, and should be developed in consultation with all relevant stakeholders. This approach helps ensure that all aspects of the migration are considered and that the project stays on track.
Stakeholder Engagement: Involving all relevant stakeholders from the beginning is essential to ensure that their needs are met and to foster buy-in. This includes employees from various departments, IT staff, and any third-party vendors who may be impacted by the migration.
Change Management: Implementing a robust change management process can help manage the transition to the new ERP system and support users. This process should include communication plans, training programs, and support mechanisms to help users adapt to the new system.
Risk Management: Identifying potential risks early and developing mitigation strategies is crucial for a successful ERP migration. This includes assessing the impact of the migration on business operations, identifying potential roadblocks, and developing contingency plans.
Phased Approach: A phased roll-out can help manage risk and ease the transition to the new ERP system. This approach involves rolling out the new system in stages, starting with a small group of users or departments and gradually expanding to the entire organization.
Testing and Quality Assurance: Conducting extensive testing is essential to ensure that the new ERP system functions correctly and meets all business needs. This includes testing the system's functionality, performance, and integration with other systems. By conducting thorough testing, you can identify and address any issues before the system goes live.
Training and Support: Offering comprehensive training programs is essential to ensure that users are confident and competent in using the new ERP system. This includes developing training materials, providing hands-on training, and offering ongoing support to users.
Post-Implementation Review: Conducting a review after the migration is essential to identify lessons learned and areas for improvement. This includes assessing the impact of the migration on business operations, identifying any issues that arose during the migration, and developing strategies to address them.
I suggest you to adopt a software for PMO, personally I use also for Project Planning, Microsoft DevOps.