Our ERP System Doesn’t Generate Value

Generate Value

Our ERP System Doesn’t Generate Value

An Enterprise Resource Planning software will ensure that you are running your business smoothly, and with its help you can grow it further. Even then, there are times when applying ERP solutions to your business does not deliver the desired values. ERP system implementation sometimes is unable to provide you with the desired value, and there are many various reasons why that happens. Which is why this article is published to help understanding the reasons that act as a barriers of getting higher values. Here you will understand the reasons you need to avoid, and the recommendations you need to follow to achieve the desired values.

There are times when an ERP implementation does not deliver the desired business values. And the main reasons why such situations occur are because:

  •  The final decision makers at the time of selecting the system usually tend to incline towards selecting a more user-friendly system. Which means they do not accept or even at times consider ones that are more complex but more business-value generating.
  • Most systems are standard, and are designed as a one size software that fits all. The main problem with such software is that, it is impossible for them to fit all the business types and sizes. Which is why are more tailored and specific software will work better for your business. Whereas a standard one size fits all system will not be able to function perfectly for all the businesses.
  • Another time when an ERP implementation does not deliver the desired business values, is when the ERP requirement details are huge. This can lead to tracing all details and requirements of ERP can be difficult to manage. As the method becomes so complex, that the result is impacted negatively. Which is why a healthy balance is required, so there is not too much pressure on one system.
  • One of the main reasons why these implementations are not able to deliver the business values you through it would; because the team’s main focus is to deliver the project on budget, on time, and to be able to achieve the required deliverable.

So if you are thinking about the cases in which ERP implementation project are unable to deliver the desired business values. You should know that one of the most ERP implementation projects that are known to fail is due to lack of value visibility.

Once you have understood why they fail, you will need recommendations on how to deal with such situations. So here are a few recommendations that will help you achieve more value in your projects:

  • The key stakeholders like head of departments or middle level managers, should be made aware of each and every decision; from the beginning. Therefore, when you are selecting the system, the key stakeholder should be involved in the process.
  •  If you allow the key stakeholders holders to provide the business with the requirements that are linked with the business benefits and objectives; they will have more knowledge and grip on the implementation of the system. As this will ensure their personal involvement in the project as well.
  • Make sure you have validated all the values, and that can be done at the same time you are validating the requirements during the testing stage.
  • You need to ensure that tractability management is followed during the project.
  • When collecting any requirement, make sure you are so thorough but keep in mind that prioritizing the requirements should be based on value. You can use the value stream-mapping tool here, which can help you in identifying the values.

Written ByBilal Abualzait, MBA, PMP, PMI-PBA