7 Key Factors for a Successful ERP Implementation

1. Accurately Identifying Business Needs and the Scope of ERP Implementation

Business owners and executives need to clearly understand the challenges and difficulties their company faces now and what they expect to encounter in the next 3 to 5 years. This insight helps determine the appropriate investment in an ERP system and the scope of the ERP processes needed, ensuring alignment with the company's development plan and the capacity of its workforce to adapt and operate the system.

Choosing the Right ERP Implementation Partner

After defining business needs and challenges, the next step is to select a suitable implementation partner. This partner should have proven experience with successful ERP solutions in companies of similar or larger scale within the same industry. The partner should also have a strong understanding of both the Vietnamese business culture and accounting regulations to facilitate seamless communication, cooperation, and problem-solving during the project. This includes designing solutions, training users, and supporting system operations.

2. Involving Key Company Personnel in the Project

ERP implementation affects all departments and divisions across the company, from senior management to mid-level management and operational staff. It changes the way departments interact and work together, impacting the entire company’s operations.

Therefore, it’s essential to engage personnel from various departments in ERP implementation for a certain period such as Executive sponsor, Project leader/owner, Project manager, Implementation partner, IT, Test team, Communications, Change manager, etc. In which, Project Director, Project Manager, and Key Users are the most usual roles involved in ERP implementation. 

• Holds the highest authority to define the project's goals and scope.
• Fully understands the company’s operations and industry.
• Inspires and motivates project team members to achieve the project's objectives.
• Allocates resources and ensures time commitment from all project members.
• Leads by example in adopting the standardized processes and solutions of the ERP system.
• Approves significant changes related to system integration across departments if they cannot resolve issues independently.
• Time commitment: Typically one day per week or as needed to make crucial decisions.

Project Manager: Usually the Vice President, CIO, CFO, or a project manager with ERP experience

• Has a solid grasp of the company’s operations and can connect and coordinate across departments.
• Develops and executes the project plan, coordinating tasks across departments.
• Manages project goals, scope, and deliverables.
• Monitors progress and assists departments in staying on track.
• Coordinates with departments to resolve issues that arise weekly.
• Provides regular project status reports to the Project Director and project team.
• Oversees project communication efforts.
• Time commitment: Typically one session per day.

Key Users:

• These individuals are well-versed in the business processes of the systems they oversee.
• They provide accurate information about current procedures and templates used by the company.
• They collaborate with the implementation partner to design optimal solutions for the processes they manage.
• Key Users also review and approve the proposed solutions and processes within their area of responsibility.
• They oversee and manage the testing of the new system.
• Key Users are responsible for training end users after the system goes live.
• Time commitment: On average, one session per day during relevant phases of the project (e.g., assessment, solution review, system testing).
• The more involvement from leadership and management, the higher the likelihood of ERP project success.

3. Following the ERP Implementation Methodology

ERP vendors have developed implementation methodologies based on their experience with thousands of successful ERP implementations globally. Strict adherence to these methodologies is crucial for success. It ensures efficient use of resources and minimizes risks during implementation. This adherence is a critical condition for successful ERP deployment.

4. Applying Best Practices in ERP Implementation

Investing in an ERP system means gaining access to integrated processes and internationally proven management practices. Companies looking to standardize operations or expand their business should utilize these best practices to unify their management and operational metrics across the entire organization. 

Adopting best practices in ERP implementation offers the following benefits:

• Leverages successful, real-world implementations by large enterprises, enhancing the effectiveness of the ERP system.
• Reduces research and system design costs, optimizing the company’s resources.
• Limits potential issues arising from the system.

5. Training and System Transition

Training Key Users and End Users: Using the Train the Trainer model, the implementation partner will first train Key Users to proficiently operate the system. Once Key Users validate the system against the agreed-upon solutions, the project moves into the transition phase, and Key Users are responsible for training the End Users. 

This approach ensures Key Users can fully manage and control the system when it goes live. Key Users can then train new hires as necessary. System transition is critical, as it involves transferring Master Data and initial balances into the system. To ensure success, at least three trial data transfers should be conducted before the system becomes fully operational.

6. Official Go-Live

Once the ERP system goes live, the company will operate exclusively on this system to ensure seamless real-time operations. Transactions will be entered and monitored within the ERP system, and all documents and reports will be generated from the system for approval, distribution, and filing.

7. Communication During ERP Implementation

To ensure the success of the ERP implementation project, it’s vital that senior management plays an active role in project communication and encouragement.

Consistent and timely communication keeps all project members and the company informed of important milestones and progress. This reinforces team commitment and keeps everyone aligned with the project goals.

Senior management’s direct involvement in communication fosters strong connections among departments, driving the project's success. 

Communication Strategy

1. Develop a comprehensive communication plan for each project phase.
2. Communicate key information through various channels, such as newsletters, decisions, mini-games, online tests, meetings, emails, posters, banners, and company news updates.
3. Hold regular meetings to convey project goals and the importance of achieving specific milestones.
4. Publish periodic newsletters at the end of each project phase.

Conclusion

In Vietnam, the demand for ERP systems is growing as companies strive to improve management capabilities, reduce costs, and stay competitive in the global market.

Successful ERP implementation requires commitment from all levels of leadership, a proven implementation partner, strict adherence to implementation methodologies, and the application of best practices tailored to the company’s needs.

Citek provides comprehensive digital transformation solutions, including Oracle NetSuite & SAP ERP, MES, Data Collection, CRM, Data Warehouse, Business Planning, and Business Intelligence. We have earned the trust of global and leading Vietnamese companies, such as Hoa Phat Group, Gelex, Loc Troi Group, Eurowindow, THP Group, Adidas, Phenikaa, Nanogen Pharma, Cadivi, Thibidi, Honda Vietnam, Minh Phu Seafood, Nippon Paint, Nam Kim Steel, SMC Steel, Diana, Big C, Novaland, Mitsubishi Electric, Tecan, etc.

With significant contributions to digital transformation, Citek has been recognized with prestigious awards, including Top 10 Vietnam IT Business Award 2021, Sao Khue Award 2021, and Sao Vang Dat Viet Award 2021. Citek is also the only SAP S/4HANA Partner of the Year 2020 in Vietnam and was SAP’s fastest-growing partner in the Asia-Pacific region in 2019.

Contact us now to learn more about ERP, management, and digital transformation!