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One of the more expensive aspects of the merger is the integration of ERPs between the two organizations. ERPs are essential for a business striving to be efficient and profitable, allowing for the sharing of data and information between all levels of a business. ERPs streamline the every day business processes, allowing the business to delegate vital resources elsewhere. Without a thorough strategy in place, along with quick decision-making, the merger has the potential to be more costly than the companies can afford.
The most common cause of a failed ERP integration is the inability to thoroughly analyze all aspects of the integration and, from that, create a clearly defined strategy to accomplish the merger. In addition to a clearly defined strategy, the company must also have a clear goal of where they want to be as a result of the merger. A thorough analysis provides the company with the means to create effective strategies. It is imperative that a company does not ignore this step, because without it, there is a high probability that the M&A will not go as planned
The two main strategies for ERP implementation are the Cut Over strategy and the Go Live and Stabilize strategy. The main difference between the two is whether or not the company still operates while transitioning to SAP. For example, in a manufacturing company the factories would be shut down during the transition in a Cut Over strategy to allow a full integration to SAP and have everything fully prepared before resuming operations. Go Live and Stabilize strategies would keep the factories operating, with an extremely high level of support while the integration to SAP is ongoing. This high level of support keeps a close watch for errors or any issues that may arise. The stabilization period is ideally only a few weeks for a company, depending on the scope of the project.
Our experienced, ERP-savvy consultants can provide comprehensive analyses on most ERPs to create a detailed strategy for successful ERP integration. ERP implementation projects can be excessively resource-consuming, and choosing the right team can help manage resources more efficiently for a smooth transition.
One of the more expensive aspects of the merger is the integration of ERPs between the two organizations. ERPs are essential for a business striving to be efficient and profitable, allowing for the sharing of data and information between all levels of a business. ERPs streamline the every day business processes, allowing the business to delegate vital resources elsewhere. Without a thorough strategy in place, along with quick decision-making, the merger has the potential to be more costly than the companies can afford.
The most common cause of a failed ERP integration is the inability to thoroughly analyze all aspects of the integration and, from that, create a clearly defined strategy to accomplish the merger. In addition to a clearly defined strategy, the company must also have a clear goal of where they want to be as a result of the merger. A thorough analysis provides the company with the means to create effective strategies. It is imperative that a company does not ignore this step, because without it, there is a high probability that the M&A will not go as planned
The two main strategies for ERP implementation are the Cut Over strategy and the Go Live and Stabilize strategy. The main difference between the two is whether or not the company still operates while transitioning to SAP. For example, in a manufacturing company the factories would be shut down during the transition in a Cut Over strategy to allow a full integration to SAP and have everything fully prepared before resuming operations. Go Live and Stabilize strategies would keep the factories operating, with an extremely high level of support while the integration to SAP is ongoing. This high level of support keeps a close watch for errors or any issues that may arise. The stabilization period is ideally only a few weeks for a company, depending on the scope of the project.
Our experienced, ERP-savvy consultants can provide comprehensive analyses on most ERPs to create a detailed strategy for successful ERP integration. ERP implementation projects can be excessively resource-consuming, and choosing the right team can help manage resources more efficiently for a smooth transition.
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