ERP Implementation

Implementing an ERP system can transform operations, unlock new efficiencies, and provide a solid platform for growth. Yet the reality is many implementations fail to deliver on expectations, leaving businesses with costly systems that solve few problems. Few projects carry as much promise or as much risk as an ERP implementation. ERP implementation represents a significant investment and the software itself is only part of the overall cost. The true value of investing in the system is realised only when the system is properly aligned to the organisation's business processes and data is adequately captured and utilised. In our experience, the seeds of failure are often sown long before any software is installed. The true challenges lie in planning and preparation, and then choosing the right partners for the journey.

1. Engage an Unbiased ERP Consultant

Too often, businesses begin the ERP journey by speaking directly with a software vendor or even a product-specific implementation partner. This approach carries significant risks. ERP vendors and technical partners are experts at implementing the systems they sell. However, their role is to deliver the product they represent, not to assess whether it is the right fit for a business.

We recommend engaging an experienced ERP consultant or a project/ program manager who has overseen multiple ERP implementations. This independent expert can work with internal teams to understand business requirements, strategic objectives, and operational challenges. They can assist in identifying which ERP platform truly fits the business needs and can scale as the organisation grows. This pre-work saves you from choosing the wrong system, which is a costly mistake that many businesses discover too late.

We've seen this mistake made many times by mid-sized Australian and US companies who are great at what they do, but have little in-house IT capability to implement and maintain an on-premises ERP solution. Another common mistake is implementing an outdated or less-popular platform, just because it's a lot cheaper to implement, but over the long run, this turns out to be a costly mistake. Finding a talent base to maintain the system becomes a challenge, and onboarding new employees familiar with the ERP becomes a challenge, which can drive down productivity.

2. Organisational Process Maturity Uplift

Once an ERP platform has been shortlisted, the next critical step is to document the As-Is state of core business processes that will need to be used by the ERP. This may include processes such as Accounts Payable, Accounts Receivable, Purchase Orders, Expense Management, Account Reconciliation, Manufacturing Requirements Planning, etc, depending on the nature of your business.

Ask the question to see if these processes are clearly documented and if people actually follow them. If the answer is no, you’re not ready to engage an ERP vendor yet, and the focus should be on building this foundational maturity up. Without clear processes and consistency, all you’ll do is replicate the same problems in a new system. You’ll have invested in a modern ERP, but you’ll still be running your business the same old way without reaping the benefits. This is where 90% of businesses fall over.

Implementation partners want to move quickly to delivery. It’s not in their interest to spend weeks or months mapping processes in detail and building this maturity up. And let’s be honest, ever-changing requirements and scope or complex customisations can mean more billable work for them. This is really where the real ERP price can exponentially grow from what was initially scoped and budgeted for. So if you don’t get this foundation right, you’ll pay for it later.

3. Master Data Governance and Data Clean-up

The next step is reviewing the quality of your data in your current systems. It’s the unglamorous part of ERP projects. It means going through thousands of records and having someone manually check and fix them. Today, with the help of AI and having an Excel guru on standby, you can typically work through this fairly quickly.

Over time, every legacy system accumulates bad or incomplete data. For example:

• You have 5 contacts named “John Smith” with five different phone numbers.

• You have 2 vendor records for the same company, one called “XYZ Ltd.” and another called “XYZ Pty Ltd.”

• Having inconsistent Unit Of Measures with conversion factors not defined such as Pallet, Packs, Cartons for the same item.

• Inconsistent Item Descriptions such as Philips Monitor 27", Computer monitor for Charlie.

While appearing to be minor, this kind of data creates costs, confusion, and errors in your new ERP system. Bad data going in means bad data coming out. While this step can be performed during your implementation journey, we recommend having a first go at getting things in order. The master data governance policy will need to be drafted, and your data will need to be aligned to this.

4.Evaluate Multiple Implementation Partners

Once the above steps have been completed, it’s time to engage an implementation partner. Present the user requirements, the business processes you've documented and the scope of delivery. This makes it easier for vendors to clearly understand the work involved and provide you with an accurate quote without overcharging you.

Don’t go with the first partner you meet. Interview and evaluate at least two or three vendors. Compare their proposals, timelines, methodologies, and costs.

5.Project Delivery Management

After engaging the implementation partner, the focus shifts to following a disciplined project management approach and effective change management. Maintaining momentum, running structured project meetings, and enforcing strong project management governance are essential to avoid scope creep, delays, and unforeseen costs. An experienced project or program manager will need to oversee both the technical and human aspects of the implementation. Strong leadership and structured management are vital for achieving a successful go-live and ensuring the organisation realises the full benefits of the ERP investment.

Successful project management involves clear scope definition and maintenance, rigorous schedule, resourcing and budget tracking via regular project meetings to review progress, risks, open actions, and upcoming milestones. Weekly meetings keep stakeholders aligned and ensure accountability across all teams.

Equally critical is change management. Key activities include assessing the impacts of change across different departments, updating business process documentation, conducting a training needs analysis, and planning and delivering training sessions. Without proper change management, even the best system can fail to deliver value, as people revert to old ways of working or struggle to adopt new processes.

Final Thoughts

ERP implementation is a significant investment. The software itself is just part of the cost. The real value comes from aligning the system to your organisation's needs. At SC Logix, our experts support businesses through the critical pre-work phase and manage the project and change aspects essential for a successful ERP delivery. Connect with us for an unbiased, no-obligation initial discussion.