Enterprise Resource Planning (ERP) programs can be powerful tools for improving a business organization. Many businesses recognize the need to improve their information flow and decision systems. In most cases this need comes from the realization that isolated departmental systems (or spreadsheets) must be integrated to pass information more efficiently to all departments. In an effort to improve information flow and coordination within the business, the decision is made to find a comprehensive software program that serves the needs of all departments. As a result of a new business program every job is the company is altered to some degree.
With this business change, the potential for improvement is enormous and the risk of failure is very great. Because of the risk and reward for this business change, management must take care in the selection, and just as important, in the implementation of a new business computer program. Most businesses focus all their attention on the evaluation and selection of the best software program. They give less attention to the importance of implementing the selected program and the acceptance of the program by all corporate personnel.
Yet, selection and implementation of ERP software is one of the most difficult changes a business can undertake. The success rate for these projects is barely 10%. Most implementation projects are plagued by cost overruns; delay; partial implementation; or all three of these problems.
Cogent Management Resources has a proven method for the selection and pre-implementation process. We do not endorse or sell business software. Our purpose is to assist the business in defining its needs; in analyzing the available software programs; in identifying the most suitable program; and in preparing the business to accept and use the new program to achieve the business goals. During, and after, the implementation process, Cogent Management Resources audits the implementation effort to ensure the business is on track to be completely implemented and to use all the features of the new software in an efficient manner.
As part of the pre-implementation preparation, Cogent Management Resources uses a series of proprietary measurement tools to determine the readiness of the business to accept this new change. It serves to identify personnel or departments that will not fully accept the new software. These measurements are powerful tools for directing management to the areas with the greatest chance of failure.
In summary, it is fair to say that selecting and implementing an ERP software program is a project with a high risk of failure. There are methods and tools available that will dramatically reduce this risk. Contact Cogent Management Resources to discuss your plans to select a new ERP software program.
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Please let me be part of the 10% that succeeds in fully implementing the ERP software we purchased last year! As of January, the data collection has had a few issues, but the information we are gleening is allowing the company to make better decisions. It’s true, there are many issues that arise because of the layers of information and the complexity of the system. The only reason I went down this path was because I was so tired of all the excel sheets we were using to gather info to make decisions. I researched software available to small manufacturers and found E2 Shoptech met our need. I understand Peachtree and Quickbooks also have modules you can add on to their accounting packages.
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