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This document discusses critical success factors for ERP implementations based on case studies of companies that implemented ERP systems successfully and unsuccessfully. It identifies executive support, clearly defined project scope, building a dedicated project team, having a clear cut-over plan, and selecting the right implementation partner as key factors. Case studies of companies like Fulton & Roark and Lidl are presented to illustrate how these factors did or did not contribute to successful versus unsuccessful ERP implementations.

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86 views8 pages

Presentation 3

This document discusses critical success factors for ERP implementations based on case studies of companies that implemented ERP systems successfully and unsuccessfully. It identifies executive support, clearly defined project scope, building a dedicated project team, having a clear cut-over plan, and selecting the right implementation partner as key factors. Case studies of companies like Fulton & Roark and Lidl are presented to illustrate how these factors did or did not contribute to successful versus unsuccessful ERP implementations.

Uploaded by

shayan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ERP IMPLEMENTATION &

SUCCESS FACTORS
GROUP MEMBERS
SHAYAN KHAN (20202-27032)
SHAZIA PARVEEN (20191-25279)
Fulton & Roark

 Fulton & Roark, a retailer of men’s grooming products, is an example of a successful ERP
implementation.
 Prior to upgrading to full-featured ERP, the North Carolina-based business tracked its
inventory in a spreadsheet and its financial data in desktop accounting software, Sage Live.
 When the company began doubling sales year-over-year, leadership felt its current processes
weren’t keeping up.
 Spreadsheets couldn’t account for changing inventory costs, and the accounting software
didn’t have the workflows necessary to record the cost of goods sold (COGS), an important
financial metric.
 As a result, the Fulton & Roark team did double data entry — manually.
Solution

To centralize all work in one place, the company’s co-founders implemented 


NetSuite ERP. After a three-week implementation process, changes were immediate,
according to team members. Finally, the Fulton & Roark team was able to:
 Catch and correct bookkeeping mistakes related to inventory.
 Stop working with external accountants, growing both unit and dollar volumes
significantly with no extra headcount.
 Increase sales roughly 50% year-over-year without increasing headcount.
 Get a more accurate picture of margins and inventory, which helped grow its
ecommerce operation.
Lidl Bad Experience Of ERP Implementation

 Lidl is part of the Schwarz Group, the fifth-largest retailer in the world with sales of 
EUR 104.3 billion (2018), and Li
 In 2011 Lidl made the decision to replace its homegrown legacy system “Wawi” with
a new solution based on “SAP for Retail, powered by HANA”.
 The old merchandise management and information system was reaching the limits of
its capacity. In fact, SAP claimed that Lidl’s system was “hampered by process
breaks, redundant master data storage, integration gaps and functional restrictions.
 Moreover, a combination of myriad interfaces and modules and a decentral server
structure was making the task of running and maintaining the system increasingly
complex.”dl makes up 80 % of that result.
Reason of ERP Failure

 Project Duration
An ERP implementation just cannot last seven years. The pace of change has
accelerated in many industries, retail and distribution is not immune. ERP systems have
to cope with this pace of change. 
 Executive Turnover
Lidl experienced quite a bit of executive turnover throughout their transformation. It is
difficult to maintain alignment and momentum against this backdrop. As executive
priorities and personalities change (and both did in this case), it is highly likely that your
ERP project will become misaligned with those new people. This is where projects often
fail.
CRITICAL SUCCESS FACTORS

1. Executive support
 It’s vital that your executive team is on board with your ERP project. We know from experience that
projects succeed when everyone is working from a single set of facts, which is why Quick Start data
resides in a single database, giving both Sunrise and customers an identical view of a project’s status.
Power BI dashboards with almost real-time updates gives everyone a bird’s-eye view of the
implementation and keeps people on the same page. Embedding Power BI into Quick Start has been the
biggest game-changer since we launched the tool in 2013. Users have a quantitative view of how a project
is progressing, and project managers can spot bottlenecks quickly.
2. Clearly defined project scope
 Having a well-defined and written scope of work can mean the difference between a failed project with
disastrous results, and a highly successful project with huge benefits. Your project scope is the basis for
the requirements of the project and the resources that need to be deployed. Don’t skimp on scoping. It
pays to spend the time upfront making sure EVERYTHING is documented and define clear expectations
upfront and establish overall goals.
CRITICAL SUCCESS FACTORS

3. Build a Dedicated Project Team


 Building a dedicated project team is among the most critical factors for successful ERP implementation. A dedicated
team ensures that the project stays on track and can communicate and coordinate with all stakeholders effectively.
Furthermore, a dedicated team can provide timely support and training when needed.
4. Have a Clear Cut-Over Plan
The ERP implementation process is a costly, complex, and chaotic undertaking for any organization. A clear cut-over plan
is essential for a successful ERP implementation. The cut-over plan should include the following:
 Defining the roles and responsibilities of all team members involved in the implementation.
 Establishing clear communication channels between all team members.
 Creating a detailed timeline for the implementation process.
 Develop a testing and validation plan to ensure all data is accurate, and all processes are functioning properly before
going live with the new system.
 Defining the go-live date and ensuring all team members are prepared for the switchover to the new system.
 Creating a post-implementation support plan to help users adjust to the new system and address any issues that arise
after going live.
CRITICAL SUCCESS FACTORS

5. Select the Right Implementation Partner


There are numerous factors to be considered while selecting an ERP successful partner. Here are some critical factors to
ensure a successful implementation:
 Industry expertise: Choose a partner who successfully implements ERP systems in your industry. They will be
familiar with the unique challenges and requirements of your sector.
 Proven track record: Select a partner with a strong track record of successful ERP implementations. Ask for
references from happy clients and check them out thoroughly.
 Implementation methodology: Ensure the partner has a robust and proven methodology for implementing ERP
systems. They should be able to tailor their approach to your specific needs and requirements.
 Support and maintenance: Once your ERP system is up and running, your implementation partner will need
ongoing support and maintenance. Make sure they offer this as part of their service offering.
 Flexibility: Things change, and your needs may change over time. Choose a flexible partner who can adapt their
services to meet your changing needs.

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