ERP implementation: tips for managing risks.

• Author: Roque, Rob
• Position: Solutions - Enterprise resource planning

Installing an enterprise resource planning (ERP) software application is a difficult project. While ERP can create tremendous efficiencies, it is not something officials can typically publicize as an accomplishment, as they might do with a new bridge, an economic development project, or added police staffing. And as a result of recent budget challenges, state and local governments have been caught up in an ERP catch22 scenario: ERP software applications could help to solve the local budget crisis through efficiencies gained, yet it is difficult to get approval for ERP projects because they require substantial upfront investment. In addition, though they are now rare, spectacular ERP project failures from the past continue to haunt the public sector. The perceived riskiness of ERP projects, coupled with the fragile economy, has made public-sector leaders wary This article provides lessons learned from working with member governments on how to reduce risks.

ERP implementations follow a series of standard project management process steps. Project preparation focuses on constructing the project team and setting up other infrastructure necessary to support a project. Project planning deals with scheduling resources and activities. Project design focuses on identifying gaps between the customer requirements and the software functionality, At the build stage, the software is configured according to the design specifications. At the test stage, the configuration of individual functions and integrated processes are checked. The deployment stage focuses on training and roll-out of functions. Finally, the post-implementation support stage includes activities such as change control, help desk, and ongoing maintenance of the new application. Below is a list of tips to help you through each stage of an ERP project.

OFF TO A GOOD START

Mine RFPs for hard-to-get information. Preparing for an ERP implementation is a daunting process. Make it a little easier by using vendors' responses to your request for proposal or request for information to gather data that is usually difficult to obtain. For example, request that vendors identify what office space they will need for the project. Also request the vendor and client staffing assumptions during each stage of the project.

Choose your team wisely. The quality of your project team is crucial to the success of the project. Many government officials think they need people from outside the organization who have substantial prior ERP experience, but it is more...