Cost/Benefit Analysis.

A process to generate a written document that spells out the costs of
implementation and the benefits of operating Enterprise Resource
Planning successfully, and results in a formal decision whether or
not to proceed with ERP.
• Go/No-Go Decision.
It’s possible—but not very likely—that your business may be so well
managed and so far ahead of competition that the Cost/Benefit
Analysis may not indicate that ERP is for you. If not, then that data
will lead you to go on to other projects. However, if ERP’s benefits
are compelling, then the decision to go ahead needs to be made clear
and made “official” from the top of the organization. The starter’s
gun should sound at the moment the leader agrees with the formal
recommendation to go.
• Vision Statement.
A written document defining the desired operational environment to
be achieved with the implementation of ERP. It answers the question:
What do we want this company to look like after the implementation?
• Performance Goals.
Agreement as to which performance categories are expected to improve
and what specific levels they are expected to reach.
• Project Organization.
Creation of an Executive Steering Committee; an operational-level
project team, consisting mainly of the managers of operating departments
throughout the company; and the selection of the fulltime
project leader and other people who will work full time on the
project.
The Implementation Challenge