Lessons from Leading ERP Implementation Teams
With the rapid upward trend of digitizing the enterprise business operations, the adoption of Enterprise Resource Planning (ERP) system by Bhutanese companies is gaining momentum. Business executives are seeing the value of having access to real-time integrated information through well-streamlined business operations. The availability of cheaper ERP solutions targeting small and medium enterprises (SMEs) has helped fuel the demand growth too.
In 2016, Druk Holding and Investments Ltd (DHI) initiated a pilot project to implement an open-source ERP solution by a Bhutanese team based on ERPNext at State Mining Corporation Limited (SMCL) to address the issue of exuberant charges companies had to pay for proprietary ERP solutions. I joined the team then and had since implemented the ERPNext ERP solution for four other companies.
The following are few lessons and observations from my experience of leading teams in implementation of ERP solution in the Bhutanese market:
Excessive Customization
The true value of ERP solution is the opportunity it provides for the companies to undertake business process reengineering. However, rather than seizing the opportunity to change the way things are currently done, the solution had to be excessively customized to fit the current business process. This doesn’t add any value other than replicating the entire current process onto a digital platform.
However, excessive customizations have serious consequences in an open-source environment when it comes to updates and patches. It also makes adopting requirement changes in future a daunting task.
Management Support
People naturally prefer to maintain status quo rather than embrace change unless they are motivated or forced by circumstances. The importance employees attach to ERP implementation activities depend on the significance the management team gives it. Simple efforts from management like requirement for regular updates on the implementation progress, and participation in user trainings bring visible extra effort from employees too. This can ultimately reduce the effort needed for change management.
Core Team Members
Core Team Member (CTM) is an individual from the company who can provide information to the consultants and give time to answer their users after the implementation phase. Thus, they should have good knowledge on the business processes within the company or, at least, should know whom to ask for the right information. However, it doesn’t mean that the CTM has to be the highest-ranking personnel in their respective business processes.
With the highest-ranking personnel being the CTM member, they are usually not in a position to contribute productively to the project since they are involved in other daily task. Although it is hard for SMEs to afford CTMs to work fully for the project without other responsibilities, their core responsibility should be towards the project. The availability of CTM members to the consultants, as and when they are required, does add a lot of value.
User Acceptance Testing
User Acceptance Testing (UAT) is the process where company users test and confirms common scenarios and daily task in the new ERP system. This phase, when done with diligence, can reduce common failures once the system gets deployed. However, the company users, perhaps with encouragement from the implementing partner, hardly take the task seriously. The UAT signing is done more for procedural purpose than what it was intended for with the confidence of “we can call you guys later if it doesn’t work.”
