ERP system is a very powerful computer tool, and organizations can gain a lot of competitive advantage by implementing an ERP system. Unfortunately, it is observed that many ERP projects have not been effective and hence unable to achieve the results envisaged.
As the cost of an ERP implementation project is very high, it is critical for an organization to make the project a success and start deriving benefits out of it as fast as possible. But what is it that makes an ERP implementation project successful?

Companies need a well thought-out, comprehensive process to help plan, guide and control the entire ERP implementation effort.
Before the nitty-gritty of software selection begins, management should know how current strategy, processes and supporting systems work and if any changes should be done before the new information system is introduced. The pre-implementation stage is the time to reconsider the way you do business, and to make a detailed analysis of the requirements and the expectations of the new information system. Optimisation of business processes rather than technical innovation should stand in the focus of an ERP implementation project.
Start defining software needs by examining current processes that govern your flow of information and material throughout the order-to-delivery process and ultimately the entire supply chain. There is a common tendency to shortcut this very important activity, but you will pay - sometimes dearly - in time and money for avoiding this essential step.
Evaluating and selecting ERP software is a complex task. It should be a fact-based process that brings you to a point where you can make a comfortable, well-informed decision. Some important points to be kept in mind while evaluating an ERP software include:

Successfully implementing ERP the first time requires a structured methodology that is strategy-people-process focused. This is the only way to manage the risk effectively.
Evaluate your business strategy and ERP plan before you commit to software acquisition and installation. Doing it right the first time is the only cost-effective way to do it. The following questions do not cover every possible contingency, but should be helpful to stimulate thought and discussion.

THE HUMAN FACTOR - PROJECT ORGANIZATION STRUCTURE

Defining a Project Organization Structure (POS) forms the first step in an ERP implementation project. The POS is the human framework within which all project objectives must be achieved. Development of the organization structure takes into account project objectives and deliverables, and also factors related to project control, risk, and quality. An ERP implementation project typically involves top management and representatives from all departments of the organization, software vendors, hardware vendors, and the implementation consultants. This heterogeneous mix of people associated with the project makes the development of correct POS an activity of paramount importance.

The structure consists of various roles that are discussed below:

Project Sponsor: The role of the project sponsor is the most critical within the project organization, and no ERP project should be undertaken without a clear project sponsor. The project sponsor is generally the person who is committed to change and improvement in the functioning of his organization and is convinced that an ERP system implementation is the best and the only way to achieve it. He has the political authority and organizational power to initiate the project and sustain it through to implementation. In most cases, the CEO of the organization is the project sponsor. The responsibilities of the project sponsor include:

Steering Committee: The steering committee consists of representatives from each business area significantly affected by the project. Committee members should be those who clearly understand the impact of project-related changes and those with authority over allocation and management of user resources. Project sponsor usually chairs the steering committee. A senior representative from the consulting team is also part of the committee. The steering committee provides direction and decision-making support to the project and meets regularly to serve as a communication link between the project team and senior management of the organization.
Project Manager: The project manager is appointed by the steering committee on the basis of administrative skills and exposure to business functions within the organization. The project manager can be a senior manager in the organization or can also be a senior experienced member of the consulting team. Ideally, for large implementation projects, two project managers - one from the organization and one from the consulting team - are appointed. The principal areas of responsibility for a project manager are:

Functional Team: The functional team is the most important component of the POS and forms the interface between the ERP system and end-users during project stage. It has representation from every function within the organization, viz. inventory, purchase, planning, production, finance, costing, taxation, marketing and sales, maintenance, HR, EDP etc. These team members are selected by the steering committee based on their exposure to respective business areas and their ability to manage change in operational procedures. Collectively they are responsible for:

Implementation Consultants: Using their knowledge of process integration and experience in applying proven techniques, the implementation consultants simplify and expedite the implementation process. In addition to assisting the functional team the implementation consultants are also involved in:

Information Services (IS) Team: The IS team consists of the members from the EDP department of the organization. The team has a good mix of expertise in operating systems, networking, and database administration. The IT specialist, from the consulting team, is responsible for training members of the IS team in technical aspects of ERP systems (i.e. operating environments, database administration, and security etc.) along with a functional overview of the ERP system. The IS team is involved in every activity of the project, viz. requirements study, selection, installation of hardware and software, prototyping, data migration, parallel run, and the cut-off to live.
The role of the IS team is of particular importance in the data migration activity when data from the old systems has to be loaded on to the new system with suitable modifications. In case new functionalities have to be developed, the IS team is responsible for providing the technical specifications to the programmers. Also, the IS team is responsible for incorporating vendor-supplied updates in the ERP software after the completion of the project.
Hardware Vendor: The hardware vendor is responsible for installing all the computer hardware and related peripherals like printers and networking equipment. The hardware vendor is also responsible for maintenance of the computer systems throughout the course of the project and beyond.
Software Vendor Team: Members from the software vendor organization are responsible for installing the ERP software. Also, the software vendor should provide the organization with regular updates to the software for bug fixation or feature enhancements.

The project organization structure discussed above is a generic structure for most ERP implementation projects. The structure may change, depending on organization size and scope of the project. Also, project organization is dynamic, and it is observed that, as a project progresses, the project organization generally evolve.
To conclude, ERP implementation project should not be viewed as simple process automation but as an exercise in business transformation that calls for integration of people, process, and technology. It is a people-driven activity and its success is very much dependent on the effective organization of the human resources associated with it. Therefore, a good project organization structure is a key enabler for effective implementation.

One of the main ERP systems characteristics unlike the rest package applications on the market, are the possibilities to adapt to client's needs and requirements. This hard task can be accomplished only by following a strict and consistent scheme of steps in order to be able to comply absolutely to the processes peculiarities and the organization structure of the client. These steps include installation, data migration, customisations (if necessary), users training and final testing of the system.
Software professionals and consultants, together with client's representatives accomplish all these activities, which obligatory take part in the ERP implementation process.
The implementation process can be described in the following order:

I. ANALYSIS

Analysis of the client's requirements and needs and a plan for the system's adaptation in order to meet these requirements should be accomplished during this stage. The objective is to achieve mutual agreement on an ERP solution that will contribute to the accomplishment of company's long-term goals. A detailed description of all existing business functions and processes in the organization should be made, including all current document types and information and material flows.
At this stage should be discussed some possible activity reorganization plan (if there is a necessity of reorganization). As a result a management model of the organization should be created that would be used as bases for the customisation of the ERP system.

II. PILOTING

In this stage a prototype of the system is created, testing real data and documents, which includes strategic issues such as:

III. DATA MIGRATION

This stage covers the data migration to ATLANTIS. Furthermore, the following essential events are conducted:

After the finalization of the ERP implementation project the system is ready for exploitation. However, there are some activities related to the after implementation stage including: