One important aspect of being able to manage a company well is having a system that can help manage business operations properly.
Therefore, a well-integrated computerized system is absolutely necessary. Not only for large or medium companies but also for small companies and even micro-companies.
It can be started with the simplest things, such as recording sales and stock positions in stores using a mobile device.
However, we often find or hear about challenges in implementing information systems, both for companies that have used the system or for the first time using the system.
Its users can feel disappointed because the existing system cannot optimally assist operations, aka “failed”.
However, we often hear that there are companies that can use the system successfully. In fact, the systems used in both companies are the same.
From the data we collected during 1994 – 2015, it turns out that the success rate of implementing the system for 20 years is in the range of 20% – 35%.
This means that only 1 ERP system implementation project is successful out of every 3 to 5 implementation projects.
And if we try to compare it with the report from Standish Group entitled “Chaos Report” regarding the implementation of ERP systems, 50% of companies fall into the “challenges” category after implementing a new ERP system. Meanwhile, 20% of companies fall into the “fail” category. Whether it’s the implementation of Microsoft Navision, Oracle NetSuite, SAP Business One or the implementation of an open source ERP system such as Odoo.
Whereas with the development of technology, the more companies become aware of implementing Standard Operating Procedures (SOP) and the advancement of user education, the implementation of the new system will become easier. So that the greater the hope for success.
Based on the “Chaos Report”, several factors cause 50% of these companies to “have challenges” are:
- The function obtained is not as expected (over expectation).
- The project is running longer than planned (over time).
- The budget used is more than planned (over budget).
In choosing an ERP system, there are companies that choose a system that is already available on the market, and there are also those who choose to make the system specifically (custom build).
The process of implementing a custom build information system can be more difficult. It takes more resources (time, cost & human resources) to build (development) systems and also test (testing) than using systems that are already available in the market (off the shelf). It also includes the resources needed to fix bugs that arise from newly created applications.
There are several important stages in the ERP system implementation process. These stages aim to make the external / consultant team and the company’s internal team understand and understand what the duties and responsibilities of each team in the project are. The stages in the implementation are:
- Project Preparation.
- Business Process Blueprint.
- Go Live Preparation.
- Go Live and Support.
With the stages in implementing this ERP system, we can early identify the risks that exist in the project,
There are several key points that influence the system implementation process in the company. The 8 key points are:
- Support from Executive Management / Top Management
- Managing Expectations
- Business Process Blueprint
- Data Preparation Management
- User Readiness
- Go-Live Strategy – Parallel Run Vs Cut off
All of these key points exist in every stage of implementation, according to their activities and interests.
PT Sterling Tulus Cemerlang is a SAP Gold Partner for SAP Business One. Visit the website www.sterling-team.com for more detailed information about our products and services.