What are the most fatal mistakes in the implementa

2022-08-06
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What are the fatal mistakes in the implementation of ERP projects abroad

since Gartner Group put forward the concept of ERP in 1990, it has caused global management changes, but China has not mastered the main technologies. In the United States and some European developed countries, ERP is close to saturation. They are now optimistic about the CRM system. In 2001, the investment in the CRM system has exceeded ERP, and the CRM market will be more active this year; As a developing country, China should have entered the ERP development stage in 1997, and both last year and the beginning of this year showed a very strong momentum. Not only the domestic ERP software manufacturers are booming, but also the four internationally renowned enterprise management software suppliers, Oracle, sap, Siebel and peolesoft, have all settled in China to share the "giant cake" of China's informatization

and the heroic words of ERP software suppliers also appear frequently. For example, recently:

Kingdee xushaochun: it is the spring and Autumn period and Warring States period of ERP. I believe that one day, the world will be "unified". Now, our product line has been extended to ERP, financial software, e-commerce, middleware, etc. we also want to make our OA (office automation) products blossom everywhere in China. Kingdee is advancing in an all-round way and fighting on multiple lines. Kingdee is confident of defeating any competitor. For the raw and auxiliary materials that have given a positive list, our goal is to be the "Lenovo" of the software industry, or our ideal is to be the Qin state that ended the ERP market in the spring and autumn and Warring States periods

peoplesoft kangkewei: China is the most important investment market of PeopleSoft 8 this year. PeopleSoft has great confidence in the Chinese market. PeopleSoft hopes to occupy the main fields of ERP, CRM, financial management, human capital and supply chain management. Your company is determined to be the first in China

China's ERP market is showing a prosperous scene, just like the United States three or four years ago. Since we are behind others, we should not only use their skills and experience, but also learn from their mistakes and try to avoid detours. Foreigners' mistakes are a good opportunity for us to reduce costs and save time. Foreigners put a large amount of RMB in their pockets, so we should make every penny worth it. It is not only to bring in technologies and systems from abroad, but also to learn their management experience and the reasons for the success or failure of project implementation. We need to analyze these by ourselves. It is impossible for others to tell us everything

I will summarize the fatal mistakes that have been made in the implementation of ERP projects in the world

fatal fault 1: we fail to correctly understand the meaning of the ERP project to be adopted.

* if we are already deciding to adopt an ERP project, we should understand that this may be the last time we update the main enterprise system in the short term. Any future upgrades and improvements will not change the basic platform design

* investment in ERP project is an important entrusted matter. We should consider transferring part of the power of IT department to software suppliers. Our direction will be limited partly by products and also by software suppliers. Therefore, it is particularly critical for us to select the right software package for our organization. Obviously, we have to consider all aspects except cost and function when making choices. The vision and adaptability of software suppliers are as important as the performance of their current software

* the deployment of ERP projects is usually large and complex. The project may affect everyone and every business in our enterprise. Therefore, in order to give full play to every potential of ERP system after the implementation of the project, it is necessary to disclose the detailed description of the project

* ERP project is not only an IT department project, but also an enterprise project. Therefore, the implementation of ERP project requires the joint participation of all employees and the spirit of protagonists. The reason why many ERP projects fail is that they just regard ERP as an IT innovation, because it may not get the necessary support for the success of the whole enterprise

* do not underestimate the scale and impact of the project. We need to pay attention to the project as a whole. Many projects are affected by many parallel innovation conflicts in the organization. Therefore, we need to prioritize and coordinate the project to avoid adverse effects

fatal fault 2: the project is not equipped with appropriate human resources

* many ERP projects are in trouble because of the wrong staffing. The personnel in the project team must not only be familiar with various businesses of the enterprise, but also can improve and perfect the business when necessary

* project and team management need to be respected by the organization in order to gain the trust of all employees. Team members must be authorized to participate in enterprise decisions

* an ERP project provides an excellent opportunity for enterprises to optimize business processes. We should assign the "best" employees to the project. If their participation in the project does no harm to the enterprise organization, we may have chosen the wrong person

* there is no doubt that selective project developers do, but these latest developments may eventually enable us to take advantage of the amazing properties of super materials to pay attention to the importance of their roles. They must have a clear understanding of the future of the organization. The selected project developers must be recognized by the project committee and ensure that they are the best candidates in the organization

* below the highest level, the allocated human resources must be full-time. Don't let them complete their previous daily research and development of new products and improve product requirements while doing projects. This ensures that projects involving skilled human resources are not interrupted

* people involved in the project can expand their abilities through the project. Most project team members have developed a broader and deeper understanding of enterprise business processes. Therefore, their ability is greatly improved by participating in the project

* experience has shown that a correct strategy is needed to motivate and retain these team members. This may conflict with the existing human resources policies of the enterprise, but we can adopt a flexible policy

fatal fault 3: failure to effectively manage change

* many enterprises underestimate their ERP system as a whole, which will affect people, roles, required skills and organizational structure

* successful change management is the key factor to determine the success of ERP, but it is difficult to implement it effectively. Many organizations seem to feel uncomfortable with change management psychologically, so they will inevitably reject change management and will not provide active cooperation and support

* in the short term, effective change management should ensure that our organization and employees are willing and able to accept new business processes and systems. Generally, employees will resist change unless we have a good reason. In order to avoid conflict, different strategies need to be developed to deal with different employees

* general communication methods are ineffective, and policies should be adopted according to people's different influences and abilities. The most effective communication strategy is supported by the project representative network. These people conduct two-way information exchange, which helps to distribute project communication materials and also provides valuable feedback on the blind spots of the project team

* good consulting support is priceless. Change management leaders should be respected and need the support of people at all levels of the organization. And project managers should often play an important role in change management

* user training has become an important part of change management. The organization should not only provide simple system operation training, but also provide broader training. The training should explain the enterprise objectives of the project, the new process after the project, the new role of people and other aspects of the system. The training session should also provide an opportunity for communication to accelerate employee support for the newly delivered solution

fatal fault 4: failure to manage revenue well

* most ERP implementation is based on detailed business evidence, which needs continuous re research and re evaluation

* most project managers will have a detailed report on the cost and time of the project, but there are few reports on "how much benefit is obtained". The project budget and implementation can be implemented on schedule, but it is often difficult to achieve the benefits on time

* it is suggested that business demonstration should be regarded as a vivid document and an effective project management tool. Category management needs to consider benefits while considering time and cost. The business demonstration document needs to be evaluated at the main stage of the project. While reiterating the ideal cost, do not forget the expected value of income

* changes in organizational and environmental factors may affect the benefits that can be obtained. Therefore, the business demonstration document needs to analyze whether the information is useful in more detail. For each major revenue category, we need to identify factors that may affect revenue realization

* the business demonstration document should be the basis for a detailed delivery plan, which needs to be reused in the main stages of the project. And it needs to be managed and tracked at the end of the project to ensure that the benefits to be delivered are realized

fatal fault 5: failure to properly handle integration

* many organizations try their best to prevent the integration of various systems. They not only want to develop new ERP systems, but also hope to retain the original organizational structure. Moreover, there are still "function centered" enterprises, and the role of senior management has not changed

* however, integration will challenge the boundaries of traditional functional departments, and integration can deliver information directly to field operation staff, thus reducing the dependence on administrative support personnel

* integration may pose a threat to the existing power distribution and change the role of some senior leaders in the organization

* we'd better make great changes to the organizational structure and management role to extract the maximum benefits from the new system

* work roles need to be redefined according to the process line, and each major project team member is assigned the responsibility of end-to-end solutions. For example, a project team member needs to be responsible for the whole process from purchase to payment. This may require redefining the roles of the purchasing manager, inventory manager, and accounts payable

fatal fault 6: no long-term strategic planning before the implementation of the project

* many companies fail to consider the long-term effects of implementing ERP projects before the end of the project, thus reducing the due effects of the project

* if some aspects can be considered in advance, it can help to improve the transparency of the project team and maximize the benefits of the project

* organizations need to consider how to support their new systems in the long run. Know what needs to be customized and what capabilities are needed to maximize the return on investment

* the internal support organization may become the key strategic booster of the organization. Developing this capability internally can reduce future consulting costs. If this type of support organization is incorporated into the enterprise vision, the project manager can select the appropriate candidate for the corresponding position

* in short, the organization should realize that the initial project implementation is only a springboard, a long-term group

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