ERP project success – Get the right resources

ERP project resource allocation requires the identification of a diverse range of skills and abilities, and the allocation of team members with the right expertise to the relevant tasks. Effective resource allocation plays a pivotal role in the success of an Enterprise Resource Planning (ERP) project.

For a successful ERP project, it’s crucial to have a talented team of professionals with diverse skills, including project management, technical expertise, business analysis, and change management. On the other hand, poor resource allocation can have serious repercussions. A badly executed ERP system can result in substantial financial losses, disruptions in business operations, and harm to the company’s reputation.

Another important aspect of ERP project resource allocation, mentioned in our recently published guide ‘5 Lessons Learned from Hundreds of ERP Implementations‘ is the importance of securing strong executive support, buy-in, and active involvement throughout the process.

ERP project team

An ERP project team usually consists of an executive sponsor, a project manager, and representatives from the departments that will utilise the system. As mentioned before, it is crucial to involve senior management to ensure that the project receives the necessary resources and support to implement organisational changes. It is also important to include internal specialists who are involved in system implementation, such as an IT representative and a report writer responsible for developing customised reports for users throughout the organisation.

Executive sponsor

An executive sponsor is an executive within your company who passionately supports the implementation of ERP, business transformation, or any other project you’re pursuing. This person brings a clear vision and provides clarity to the project, inspiring team members to share the same level of enthusiasm for its potential. Their role involves explaining the necessity for change and highlighting the risks that the business may face if these changes are not implemented. Without such a dedicated role, even the most well-intentioned efforts can fall short of their goals.

Project leader

A project leader oversees the implementation of the ERP system. This person should collaborate closely with stakeholders, including the executive team, department managers, IT personnel, and end-users, to ensure that the ERP system meets the organisation’s requirements and objectives. They are responsible for successfully implementing the ERP system within budget, on schedule, and to the satisfaction of stakeholders.

Team members

The entire project can be broken down into specific tasks and responsibilities, with each task assigned to your team members. It is crucial to assign tasks to team members based on their areas of expertise, as they possess the most knowledge about how those areas function and will be directly affected when that part of the system is implemented. They also have personal motivations to ensure the success of the system.

The importance of decision-making

Decision-making is something that many executive and wider ERP project teams may not feel fully prepared for. It is common for businesses to view an ERP project or digital transformation as solely an ‘IT project’ and assume that most decisions will be made by IT leadership. However, focusing on business objectives is crucial for long-term success. Therefore, it is essential to actively involve your executive team in making important business decisions rather than delegating them to the project or IT team. This active involvement is a vital ingredient for the success of your ERP system.

Resource allocation is an essential consideration for the success of an ERP project, as it does not just depend on factors like the quality of the software, and the project management methodology, but also on the expertise of the team members and executive sponsorship, to ensure that the project is completed on time, within budget, and meeting the business requirements.

Download our5 lessons learned from hundreds of global ERP implementationsguide to find out more information on the above recommendations based on decades of Inixion’s experience and lessons learned in global ERP implementations. Give your ERP project a better chance of succeeding and delivering the benefits you expect from such a significant investment by having the right information from the start.

 

 

2023-11-01T13:54:43+00:00November 1, 2023|Blog|
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