Deployment of ERP in Vietnamese Businesses

When it comes to ERP system implementation project, the actual project cost will be one of the top concerns to businesses. In some cases, it is the major factor that affects a business’s decision on whether to implement an ERP solution.

The actual cost to implement an ERP system depends on various factors:

• Scale of the business: The number of departments and employees using the software
• Type of ERP system that the business chooses to deploy: Generic or customizable solution
• Level of customization required for ERP software
• The need for additional resources: Training courses for employees, high-end consulting services offered by the provider to the business

The business can draw up its budgets based on its operations such as infrastructure, number of users and specific requirements of each business field to choose a suitable and cost-optimal ERP solution.

An approach to successful deployment of an ERP system with minimum risks of failure

Clearly define the goals and evaluate the current state of the business

To adopt an ERP system, a business must get a clear picture of its organization’s current difficulties as well as the challenges that may occur in the next 3 to 5 years.

This will help the business more accurately identify its organization’s demands for investment in an ERP system, and determine accordingly the scope of work that needs to be done in the system to appropriately respond to the organization’s development process.

Prepare the most detailed implementation plan possible

Planning is an essential step to ensure the successful implementation of ERP. Specifically, the business needs to identify and set specific and detailed milestones before entering the ERP deployment phase.

This plan should be shared with all project participants for thorough understanding of the tasks and work that needs to be done to achieve the project goals. In particular, all tasks should be arranged in a logical sequence and have their priorities set.

A superficial task arrangement may pose the risk of exceeding deadlines and significant increase in costs to the project. Consequently, this may become one of the main causes of failure in ERP implementation.

Build a qualified team for ERP system implementation in the business

The implementation of ERP solution requires experienced and responsible performers. Specifically:

• For the Business: The project manager is responsible for reporting to the Steering Committee and is the major person-in-charge from the business side. He/she will undertake activities such as conducting talks, monitoring progress, managing the project budget, allocating resources, etc. These tasks require his/her profound knowledge of corporate business processes and ability to come up with solutions and decisions when needed.
• For ERP Implementers: The executor team includes a main consultant for project management and other consultants for management, system, technical, etc. The main consultant will work with the project manager to develop a plan for the implementation project. During the implementation process, he/she will coordinate the activities of the management, system, and technical consultants to ensure the goals set by the business in the requirements definition are reached on time.

Make sure to have end users of the ERP system trained and involved throughout the implementation process

The implementation process will not complete at the time the ERP system is built, configured and installed since it will not operate on its own and require human intervention. The interference includes training for administrators and employees to use the system.

The training must be proper and provide both theory and practice on the actual system. The business needs to guarantee all employees who work on the ERP system are trained for correct and effective use.

Choose a reputable and suitable implementation partner

After determining goals and scope of work, next is to choose a suitable partner. The selected partner should be an experienced provider who has successfully implemented similar projects for a number of enterprises.

An other important criterion is that the candidate must have a deep understanding of the industry as well as the organization’s culture and regulations, so as to produce appropriate and correct solutions for the business.

Particularly, the participation of senior leaders and directors of different departments in the business will smoothen and greatly raise the possibility of a successful ERP system implementation.

Exclusive article by FPT IS Technology Expert

Le Hoang Long

SAP ERP Implementation Consultant

FPT Information System Company