For several years, I’ve worked in the SAP ecosystem with organizations of all sizes across a wide range of industries to help them achieve growth and modernize their business processes.
While there is no one-size-fits-all recipe for success, the following 10 principles have proven to make a significant difference in the outcomes of business transformations.
How to succeed in ERP renewal and business transformation
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Understand your business targets and select the right approach
To set the stage for a successful ERP renewal, it’s crucial to understand your business objectives and choose a transformation approach and ERP solution that aligns with your strategy. Partnering with a trusted advisor like Vincit can help you navigate this process, from strategy design discussions to practical implementation and ongoing innovation.
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Embrace best practices and adapt to new ways of working
To ensure change readiness and adaptability to new innovations and business models, you need to embrace best practices. These practices provide standardized delivery models, embedded tools, and templates that can accelerate results and improve quality. However, don't settle for non-functional solutions or processes – focus on the essentials and enhance them when necessary.
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Foster business stakeholder commitment and involvement
Business stakeholders should take ownership of the transformation journey from the beginning. This involves setting targets, actively designing processes and solutions, and iteratively testing and demonstrating new ways of working. By leading the change, your business can ensure success.
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Opt for a fast and iterative deployment approach
Instead of a big bang approach, consider implementing changes in logical and prioritized phases. This allows for fast delivery of relevant outcomes to business users, allowing them to transition away from legacy systems and outdated practices with minimal risk. Prolonging the project with unnecessary investigations can be costly and hinder actual business improvements.
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Clearly define roles and responsibilities
Clearly understanding the roles and responsibilities of all parties involved in the transformation project is crucial. This includes both the solutions being implemented and the collaboration between different stakeholders. It’s essential to establish project governance and ensure everyone knows their part to avoid surprises and maximize efficiency.
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Maintain clear and open communication
Regular and transparent communication is vital throughout the project. Repeat the justifications for the change and share key messages about the project's progress, potential risks, and concerns with the project team and key stakeholders. Open communication prevents misunderstandings and rumors due to a lack of information.
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Document key decisions and deliverables
To avoid delays and speculations, document all key decisions and deliverables. This applies to project reports, workshops and other project meetings, deviations from standards, integration design, and more. It’s most likely that the initial project plan, scope, schedule, and budget will change during the project – just ensure that you have clear procedures in place to address and approve these changes in the project steering group.
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Allocate the right resources
Ensure your ERP renewal project team consists of expertise with a can-do attitude, decision-making power, self-motivation, team spirit, and sufficient time. Having a dedicated project manager from your own organization helps ensure ownership and sets an example for embracing new ways of working. The selected service provider needs to share your business targets and have a clear understanding and commitment to the agreed solution and services to be delivered.
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Embrace the 80/20 rule
Accept that no solution can meet 100% of your business needs in the initial implementation phase. By focusing on best practice processes that fulfill 80% of your requirements, you can achieve faster results. The remaining 20% can be addressed later or worked around, allowing you to prioritize while avoiding trying to please everyone and overrunning your budget and schedule.
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Foster continuous development and innovation
Recognize that change is permanent, and the initial implementation is just the beginning. Market situations evolve, business needs change, and ongoing development and innovation are necessary. Continuously improve and extend your ERP solution based on feedback, industry insights, and innovations provided by software and service providers like Vincit, who understand your business.
Do you want to learn and grow your business together? We do.
By applying these 10 key principles, you can significantly increase your chances of success in ERP renewal and business transformation. At Vincit, we have a team of over 200 SAP ERP professionals with extensive consulting experience who can guide you through the process.
Contact me, Sari Mikkonen, Business Development Director at Vincit Oyj, for more information on how we can work together to achieve your transformation goals.
sari.mikkonen@vincit.fi
+358 50 549 6598
Business Development Director
