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IT or Operations?
Who will lead your ERP Selection Team?

Your ERP Project Team is a key to your success - choose carefully.

Use these tips to guide you through your ERP resource team decisions and start your project off on the right foot.

Who is really qualified to select ERP software?

The debate continues; IT or Operations? What should their roles be in ERP selection and how can they work together to successfully implement enterprise software. Read on to find out who your ERP Project Leader should be.

A new role for IT resources.

The role of IT resources in an ERP Selection exercise is significantly different from your corporation's other technology projects. Knowing the difference can be the turning point from becoming another statistic of a failed ERP implementation.

The typical IT resource is quite capable of evaluating the technological aspects of ERP software. For example, hardware requirements, network infrastructure requirements and database technology all lie within the realm of the IT specialist. Their input is invaluable to your organization in providing a technological review of an ERP system. However, an Enterprise Resource Planning solution is just that - it is 'enterprise' wide.

Similar to a Purchasing Manager having limited IT knowledge, the IT Manager may have little experience with procurement methodology and processes. An ERP is an integrated solution comprised of various business functional processes. For this reason, the IT resource may not be the best to solely make decisions about the capability of an ERP software system which will manage the entire business. For this technological decision, the IT resource must look to their colleagues to share in the decision-making process rather than simply making a selection based on technological aspects alone.

Reliance on operational input.

On the other hand, Operations must commit to a larger role in the selection process. Each operational area must review the ERP choices to determine fit against the business processes that run the organization's core activities.

The scope of this task is large, involving key members from all functional areas - Administration, Sales, Accounting, Purchasing, Production, Materials, Quality, etc. These resources must identify the successes and failures in their job roles and be able to define current processes that are critical to your operations. Their ability to accurately define functional tasks will provide the background for the current state of operations and act as a foundation for improvement as processes are re-engineered to uncover opportunities in the new ERP.

The selection of a strong functional team is essential. These ‘power’ users will provide the greatest amount of feedback into the ERP selection process, so choosing the most knowledgeable resources in each specific field of expertise is crucial. Work with your executive and management teams to determine the best fit for your ERP selection team.

So now how do we choose?

From your selection of IT and Operations staff your next step is to recognize a strong project leader; one that understands your corporate business model and critical processes, while also having an awareness of Information Technology in terms of the various methods of ERP software delivery including hardware, database and software platforms. Therefore, your ERP Project Leader is neither IT or Operations. Your ERP Project Leader needs a well-honed skillset in both disciplines to lead an ERP project successfully.

Moving Forward with Your Team

Now that you have an ERP Project Manager and a multi-disciplined team, the next step is to assess how you would like the ERP project to be carried out. Ask yourself the following questions:

  • Do my internal resources have the time to carry out the homework necessary in analyzing and documenting the current business systems and processes?
  • Is my company willing to take on additional risk with an internal assessment?
  • If your current business challenges are the result of inefficient processes, or the wrong ERP system match, are 'lessons-learned' documented and available? - Or are there different players that are better equipped to handle the ERP selection process?
  • Can my resources provide accurate and non-biased results?
  • Can my resources analyze existing processes to uncover opportunities and areas of improvement through best practices?

If you answered yes to all of those questions, you should have a strong internal team that can conduct your ERP Selection with success. Your team should reflect the enterprise-wide philosophy of an ERP and be led by a strong Project Manager that understands your corporation's business model and future vision.

If you hesitated on any of the questions above, then an ERP Diagnostics Assessment might be the better initial strategy for you. Bring in an experienced ERP services provider that can objectively analyze your current business operations and provide recommendations for improvement either through enhancement of your existing system or through the sourcing of a new system.

How ERP Diagnostic Services can relieve the pressure.

An ERP Diagnostics Assessment is a company-wide process audit review designed to evaluate and document current state process mapping and provide future recommendations. As internal staff can have a bias towards what is best for their individual job security, this engagement is commonly performed by an outside consulting resource. Thus, the ERP Diagnostics Assessment provides a third-party, unbiased review of your current business system configuration.

The ERP Diagnostics Assessment has many benefits and significantly reduces the amount of risk inherent in the majority of ERP selection projects. In addition, it can assist organizations in formulating realistic expectations surrounding an ERP implementation whether in terms of benefit, timeframes, budgets or value. Here are just a few of the benefits an ERP Diagnostics Assessment can offer your organization:

  • Defines the business case for whether an ERP system purchase is needed - or not needed.
  • System assessment validated by objective, third party, knowledgeable ERP professionals.
  • Increased confidence/reduced risk in ERP decision making.
  • Realistic expectations of project scope.
  • Properly defined ERP requirements.
  • Less time invested in ERP selection process by key operational personnel that are critical in day-to-day operations.
  • Overall cost savings (no waste in selection of incorrect system or incorrect budgeting of resources).
  • Early corporate buy-in to ERP improvement activities.
  • Uncovers the resulting business impact before you purchase a new ERP system.


The most important benefit; no matter what you choose.

With both of these options; either selecting a strong internal team of resources or with an ERP Diagnostic Assessment conducted by an ERP Services partner, you will reap the benefit of user acceptance to your project.

Your team will be involved in the selection process at its initial stages providing them with an opportunity to provide input, share ideas and assist in the decision making process. Employee satisfaction will result in an early buy-in into your ERP and process changes that will be invaluable to your project success.

Remember, your ERP is an enterprise solution, so make it an enterprise-wide decision. You won't regret it.

 

Find the answers and get expert ERP selection advice using the knowledge attained from years of business software experience. For additional information, contact BSA Inc. at info@BSAinc.ca.