What factors affect the success or failure of implementing Dynamics AX in any organization? Generally, the success of any ERP implementation depends on three major factors; people, process and technology.
Individually, each of the three factors affects implementation in one way or another. On the other hand, the factors collectively create an environment ready for success.
To ensure a successful ERP implementation, the top management must identify, clarify and communicate the existing situation and problem the organization encounters with its business process. Most of the time, implementing ERP is done to reduce wastage incurred through duplicate and redundant tasks and improve efficiency along the different stages along the production line.
All team members must be educated on how their work will change after the ERP is implemented. Some parts of the workforce may feel varying amounts of pain with the implementation. For example, employees that are comfortable with working with legacy or outdated systems may be resistant to the change. In such a case, branch or line managers should help the employees see how current systems are ineffective and how the new ERP will help to improve efficiency and service delivery.
Let’s look at the three major factors that contribute to the success of Microsoft Dynamics AX implementation.
i) People
Alignment and support from top management is crucial to the success of implementing Dynamics AX in the organization. The top management should make informed choices to determine the ERP to be implemented, whether Dynamics AX or another choice. Apart from this, the management should clarify and communicate a consistent message that supports and reinforces the need for an ERP in the organization.
For successful ERP implementation on a large scale basis, management should recognize the volume of work involved in setting up the ERP and the impact that the change will have on various processes of the organization.
The organization should also have a knowledgeable and dedicated support team that is experienced in implementing Dynamics AX. These team members, who will mostly be from the IT department, should be dedicated to the organization and care about its mission and services to the workforce.
ii) Process
Successful ERP implementation may not be possible when all parties that will be affected are not ready for the change. To ensure there is little disruption of business processes, implementation can be done in stages.
There should be checks and balances to ensure teamwork is maintained or enhanced during the transition period. For employees not used to collaborative techniques, teamwork orientation and training to fit them in the organization will be important.
For a successful ERP implementation, the team in charge should analyze the functional and performance capabilities of the ERP to ensure it meets the needs of the organization. Other elements that have to be checked include the user interface, flow, algorithm and regression.
iii) Technology
For large scale successful ERP implementation, having strong technical support and capabilities, and organizational commitment to technology are important. Having the right technologies and capabilities can lead to effective transfer of necessary skills and knowledge to relevant teams, improving the success of the project.
The tools and technology should be scalable and implementable today. Your team should know how to use the tools important in the implementation. If there is a deficiency of skills, hiring a third party to provide the skills needed for the transition will improve the chances of success.
Implementing ERP can be complex, costly and cumbersome. Most of the time, the process exceeds the initial estimated resources and time. To enable successful ERP implementation, the organization processes have to be examined and the best ERP that matches the needs of the enterprise selected. The identified ERP has to be customized and staff trained on how to use it. Finally, the legacy or old systems have to be partially or totally replaced by the new system.
The implementation process of Microsoft Dynamics AX should be carried out without interrupting the daily processes of the organization. A successful ERP implementation can only be done when the key elements involved in the process are identified and an effective plan of reviewing the performance and employee transition to the system is set up.