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ERP – The Path to Success or The Road to Hell???

7/2/2010 at 10:31 am by

Making the decision to implement an ERP system is a highly charged one. I’ve often been amused at how low-key executives turn into raging zealots when the topic is brought up. Typically an ERP project has an internal champion, someone who has “drank the coolaid” and is now pushing ERP as the answer to a range of issues throughout the organization.

At these introductory meetings it’s always the same – each side looking to latch onto the one thing I might say that supports their position – which they have already made, either that ERP is fraught with risk and is likely to bring ruin to an organization that has lasted through 3 wars, 4 recessions and all sorts of other pains; or that ERP is the answer to everything from late monthly closings to inaccurate information to a bloated inventory.  There we have our two sides – one positioning ERP as the Path to Success and the other as The Road to Hell.

It can’t be both – or can it?
The problem with ERP is that, for many small and mid-sized organizations, it’s the FIRST TIME that they have ever tackled a project that, if done correctly, will ABSOLUTELY touch every aspect of their business — aspects that have had latent personnel, process and other issues sitting unaddressed for years.

Without real LEADERSHIP it’s unlikely that those issues can get addressed in a meaningful way.  And on the other hand, a business project of this scope executed by people who have never done such a thing before (hopefully successully!!) runs a high risk of “first time errors,” and overall amateur project execution.  And in that case, ERP can either end up being a disaster or so watered down that it’s just another version of the same old system.

It’s time to get real.
An ERP system represents the fine edge of a knife that can either surgically address what ails you, or cut you to pieces. There’s no better time to be examining how you do business than when you implement a new ERP system.  It’s a business project.  It’s an enterprise-wide initiative. And it takes many executives and business owners out of their comfort zone. When I see failures, it always starts with failures of leadership. And when I see success, it always starts with successful leadership.

So which is it? The Path to Success or The Road to Hell? It’s up to you to decide what it will be for your organization. Determine what you want it to be through your own commitment to leadership. And if it’s already there, latch onto it and nourish it.  If it’s not, run for cover.

Photo credit: luxamart

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About the Author

Paul Sita, Ph.D is president and a principal of Innovative IT Consulting. Paul is a frequent writer, blogger, lecturer and contributor to industry groups and associations.

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