"ERP Is About Bringing In A New Business Culture"

Nirusha Dissanayake, manager - ERP Systems, Dialog Telecom discusses the process of ERP implementation with Biztech2 and shares his views on some of the finer management issues involved in ERP projects.

How do you think the ERP landscape has evolved in the last few years?

In my experience ERPs have truly come of age in the last few years. In the later years of the ERP boom, these systems began morphing from simple enterprise resource planning systems into fairly complex inter-enterprise resource planning (iERP) systems which linked multiple businesses and entities such as customers, suppliers and business partners outside the traditional walls of an enterprise.

The availability and increased usage of internet in the enterprise space in the following years meant that ERPs became more and more web-centric. The proliferation of internet created a demand for software which could operate across the Internet and intranets. More recently, the advent of Web2.0 technologies such as SOA have greatly influenced and in many ways shaped traditional enterprise software applications such as ERP and CRM. As a result of these changes most of such offerings are now being exposed through web service interfaces.

ERP’s are no longer just a piece of software or a suite of packaged applications which automate and manage the internal business processes of an enterprise, but they have evolved into highly complex software platforms that can facilitate global e-business.

What are some of the key things that need to be taken in account while attempting an ERP implementation?

One of the most important things that need to be borne in mind during an ERP implementation is that it’s not about the software, but about bringing in a new business culture. Organisations must treat an ERP project as an effort which is geared towards adopting new style of functioning and they themselves have to change accordingly to better accommodate the new culture. Efficient change management is the key to a successful ERP project.

Another factor critical to the success of such an endeavour is getting the right people for executing the project. This is an area where most organisations face problems because of issues such as identifying correct individuals from across different departments, assessing their capabilities and allocating them to a specific part of the project. However, this is something that can’t be taken for granted because if you don’t get the right people for the job, you end up getting a sub-standard implementation which is of no real use to the company.

How crucial a factor is the deployment time?

It is very-very critical. ERP implementations are time and resource hungry undertakings.
Organisations going in for an implementation need to chart a clear roadmap well in advance so that they can execute the project on time. Also it allows them to be better equipped to face any eventuality that might occur during the project. A project that runs overtime has higher chances of failure because over a period of time enthusiasm of people involved in the project languishes and it can be disastrous for the project.

Long gaps between action steps can affect the project adversely. Also, factors such as customisation and user training tend to eat into the designated project time and hence it is advisable that these are kept to a minimum.

What about people involved?

Again another crucial aspect of an ERP project. Companies have to ensure that the core team that works on the project is able to see off the project because otherwise it’s very difficult to achieve success. When it comes to a major system implementation project, it is extremely difficult to find people who will remain involved and fully committed for the entire length of the project. It is for this reason companies need to make team members feel important and needed and should let them have their say in the decision making process wherever necessary. This increases accountability among the members and encourages them to stay committed even during rough times.

Also, it’s important to try and retain people from the ERP project team post implementation because they bring in the much needed experience and the ERP expertise to the table. They are the ones that mend and manage the backbone of your company so you have to reward them justly and make them feel wanted in the organisation.