With over ten years of experience working as an ERP consultant specializing in inventory management, sales and distributions, and electronic data interchange areas, I clearly understand the nuances of companies’ operations. I have worked with one of the most complex and widely-used ERP systems, SAP. Today I am eager to share my insights into navigating and mitigating risks during system changes.
Manufacturing giants such as oil refineries, metallurgical plants, and others with continuous technological processes, often face the necessity of ceaseless shipment of their finished products. Under such conditions, even a minor disruption in the ERP system, something as simple as a document printing error, can make storage areas overcrowded, undermining operational efficiency. Sometimes, what seems like a minor issue can force employees to come up with makeshift solutions, thereby disrupting the delivery schedule. In a company with continuous production, what might appear as a minor error can set off a domino effect, leading to a series of operational setbacks. Hence, backup solutions should be implemented in any case to prevent company losses.
Modern ERP systems stand at the forefront of optimizing business processes, ensuring both efficiency and productivity. However, if not managed well, changes to these systems can disrupt day-to-day operations. Drawing from years of hands-on experience, here’s a structured approach to manage ERP system changes:
- Testing completed developments. Before implementing any changes to the ERP system, it is essential to thoroughly test the modifications in a copy of the working system and check whether all related operations function without errors. Changes in functions that are used across various system tools hold paramount importance and need to be made with extreme caution. Even a minor adjustment in a widely used function can have ripple effects throughout the system, causing unexpected disruptions, so they need meticulous testing. Users may conduct the final test before the development is migrated to the main system: they know all nuances of business processes (integration testing or performance testing). This prevents unwanted consequences and provides an opportunity for troubleshooting.
- Gradual implementation. Instead of launching new functionalities throughout the enterprise all at once, it is more efficient and less risky to divide changes in phases or organize the implementation for some business units.
- To allow for swift reactions to potential issues arising post-change, implementing special keys or triggers for the instant deactivation of new functionalities is invaluable. For instance, in companies I worked for, I developed a tool that stores, quickly modifies, and adds new parameters for controlling ongoing developments. This tool included hierarchically structured tables that are created depending on the organizational structure. For example, if a company operates through multiple sales channels, it makes sense to have triggers based on this principle. Once the hierarchical depth is determined, functionality can be added and modified so that it can be read from the program code. For this purpose, a small static helper class with appropriate methods is usually sufficient. These methods return data in the form of ranges, parameters or tables. The required method can be called from the program code, defining the program’s logic based on the returned value.
- Fallback solutions. When the primary ERP functionality becomes inaccessible (such as failures in EDI integration). It is crucial to have alternative data entry methods, like manual input or loading from external files, readily available. This ensures that there is no interruption in operations.
- When using supplementary tools, adjustments may be needed in related tools like reports or in how information is displayed, especially if a user seeks to examine more details within a transaction. Such modifications are seen as insignificant, but they also may cause undesirable consequences. For instance, changing the way data is presented may impact the decisions that rely on that report. Similarly, adding or altering attributes can influence integrations with other systems or the way users interact with the ERP system. To mitigate these risks, it is crucial to thoroughly analyze customer requirements and ask clarifying questions. Often, this process can lead to the withdrawal of excessive change requests.
- Regular audits are essential. Employees should regularly check the ERP key business processes for bottlenecks. This ensures that potential issues are identified and rectified before they impact a company’s profits. Processes that influence sales deserve as much attention as those related to production and finance. As long as clients receive their orders seamlessly, even if internal processes face problems, the company maintains its reputation for efficiency and reliability. Thus, always prioritize and refine processes directly influencing customer satisfaction. For business-critical areas such as customer shipments, banking operations, and goods receipt, it is advisable to provide alternative transactions in the system as a part of the company’s backup strategy.
- Continuous monitoring. Utilize monitoring tools and dashboards to keep an eye on the system’s performance. Any deviations can be detected early, allowing for immediate corrective action.
- Staff training. The more skilled employees are with the ERP system, the easier they can cope with difficulties including any challenges with new functionality. So it is worth organizing regular training sessions and workshops.
In conclusion, while ERP systems are vital for the smooth operation of large manufacturing enterprises, they are subject to inevitable changes. Working with an ERP system, especially in continuous production environments, necessitates a unique approach. Every change may cause detrimental effects. However, employing a comprehensive approach, as outlined above, the risks associated with these changes can be managed effectively, ensuring operational continuity and minimizing disruptions during transformations. The proactive risk management approach ensures the continuity of business processes and the overall efficiency of the enterprise. Ultimately, the challenge lies in harmonizing innovation with stability.