Modern organizations make significant investments in complex information systems such as enterprise resource planning (ERP) systems. However, the risk of ERP projects is still high with reports suggesting that up to 70% of ERP implementation worldwide are failed due to many issues. ERP implementation issues are not only technical issues but also include broader behavioural factors. Perhaps it is time for Organizations to look into ERP implementation from a user's perspective, prepare employees for new challenges, and learn how to make the most of technology to reap tangible benefits. But first, we need to figure out one of the definitions that an experienced CEO need to know before spending a single dollar toward ERP projects, e-business and digital transformation projects. difference between "implementation" and "adoption".
"Implementation" means installing and configuring a new solution and training staff on how it works, so they're able to use it effectively. For example, when it comes to ERP systems, An ERP implementation involves installing the software, moving your financial data over to the new system, configuring your users and processes, and training your users on the software.
"Adoption" means having your entire company embrace that new solution, wrap it into their workflow, and become more productive as the result of using the tools and solutions in their day to day life. Successful ERP adoption refers to an organization using the ERP solution to its fullest potential and leveraging it to increase productivity and efficiency and make crucial decisions for better business outcomes.
The challenges of ERP implementation
1. Odoo Project management
ERP implementation requires multiple phases: discovery and planning, design, development, data migration, testing, deployment, support, and post-release updates. Each stage has critical tasks, and all elements need to be kept on track, which requires careful project management. In addition, each department has to juggle its ERP project responsibilities and multiple other priorities. Therefore, successful ERP implementation requires the participation of all parties involved in the development and use of the system.
2. Odoo Change management
ERP implementation is more than just switching to a new software system. It usually means overhauling business processes to take advantage of the efficiency and productivity improvements that new solutions can bring. Resistance to change can be a formidable obstacle; Early support from the leadership and stakeholders of all departments is the key to successful implementation. Throughout the implementation process, it is necessary to ensure that all users receive comprehensive training and support to help them adopt the system smoothly.
3. Odoo Data integration
An essential step in an ERP implementation is data migration, which typically involves moving data from multiple older systems to an ERP database. Well-planned data migration can help maintain time and budget for the overall ERP implementation project. However, a lack of prioritizing data migration can lead to problems such as inaccurate or duplicate data and create challenges for your live date.
4. Odoo User engagement
User engagement is critical to the success of ERP implementation. Customer engagement is more than just identifying what your customers need and where they will look for it. It's also about determining the best way to keep them. You need to have a customer engagement plan that covers the entire customer life cycle.
In summary, top challenges in ERP project remind us about missing pieces of the puzzle, an area that often are forgotten which is about going beyond the "Implementation" stage and redefining success as a measure that highly depends on whether our end users are successfully and effectively using the new ERP software or not.
Focus on adoption, Not implementation
Nearly 50% of ERP implementations fail the first time, and on average, ERP takes 30% longer than expected. About 65% of the time budget is exhausted because the system needs to be modified to meet the organization's needs. ERP adoption relies heavily on a well-designed plan and roadmap, and failure to do so can undermine your adoption efforts.
After the implementation of ERP, timely communication is crucial. Administrators need to inform employees regularly about changes made in the ERP system. Usually, organizations prefer to announce changes via email or company-wide conference calls. While this may work, statistics show that only 21.33% of emails are opened, and 85.3% of respondents feel that conference calls negatively impact their productivity, enthusiasm, and focus.
Most of the time is spent deploying ERP solutions. A significant amount of time must be allocated to ensure successful ERP implementation. Most projects within the enterprise are run on tight timelines and require approval from multiple stakeholders before any small progress can be made. In addition, many companies use traditional training methods, which can waste much time.
Conclusion Comparing to the implementation and the adoption, we can find that without Odoo adoption, projects are more likely to fail, time costs will increase, and employee productivity will decrease.
How to successfully adopt a new technology
1. Communicate your intentions
Why implements this solution? What are the expected results? Ensure your team understands why this change is happening from the start, and address any thoughts or concerns they have as early as possible.
2. Standardize (and enforce) the rules of the road
After you have determined how to use the solution internally in a way that fits your culture, any rules, guidelines, and recommendations need to be codified into a formal document and distributed to everyone on the team, and any deviations should be corrected without exception.
3. Start training from day one
Any new employee you bring into the company needs to know the big picture: what solutions you use, why you use them, how you use them, and your expectations for the future. Share any policy or rules of the road documents with them. Share your internal training records. Get them completely up to speed from the start.
4. Measure success
After you transition to a new solution, pay close attention to whether it solves the problem you want to solve and delivers the results you want to achieve. For example, our goal is to calm the freneticism that our old communication strategy was stirring up. The solution is to conduct employee surveys on a simple scale of 1 to 10 before and after implementation. This will give you insight into how the solution is performing, allow you to adapt as needed, and reinforce the "why" throughout the organization.
5. Leverage modern adoption platforms
When it comes to digital adoption and investment in modern new technology, new trends in training and change management tools and techniques can help employees learn the new software without feeling pressure to attend online/onsite training. Companies of all sizes use these tools to support their training, knowledge management and change management strategies. In-app training methods and video tooltips are examples of these techniques that companies are using worldwide to use a modern way to train their employees, which is proven to be more effective to increase employee productivity, resulting in process efficiency and faster ROI.
Conclusion
ERP systems are different from other IT innovations due to the complexity of the implementation process and the technical challenges posed by different types of end-users. This article provides insights for managers to manage the adoption of ERP systems throughout the organization effectively. A manager's goal should be to exploit the system and make employees feel good about using it, improve their performance, and empower them to make decisions. At the same time, ERP adoption help organizations reduce the risks of failure in the projects and increase the chances of success, resulting in process efficiencies and faster ROI.
Sharon Li, Business Analyst
Sharon is an IT business analyst at High Tech Masterminds. She also works on ICT and technical support for bridging the gap between IT and business using data analytics to assess processes, determine requirements and deliver data-driven recommendations.
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