What is the Value of Project Management?
Updated: Sep 6
Project management is the process of planning, organising, executing, monitoring and controlling a project from start to finish. It involves defining the scope, objectives, deliverables, resources, budget, schedule and risks of the project. Project management also ensures that the project meets the expectations and requirements of the client, the supplier, the key users and the end users.
If the above hasn’t already answered the question, why does project management matter? Isn’t paying for a project manager from our ERP supplier an unnecessary overhead? Won’t it be an additional burden on the project? How is it really going to add value? Why shouldn’t we utilise a resource within our business and manage it ourselves?
These are questions that are often asked by organisations embarking on an ERP implementation.
The quick answer is that running projects without proper project management in place is false economy. An ERP implementation is a complex and challenging endeavor that involves many people, processes and systems. It requires a great deal of coordination, communication and collaboration among different teams and departments. It also involves a lot of changes and adjustments to the existing business processes and workflows. Without proper project management, an ERP implementation can easily go off track, resulting in delays, cost overruns, errors, conflicts and dissatisfaction.
But to explore this further, here are ten reasons why project management is fundamental to a successful ERP implementation and therefore, at the end of the day, the benefits far outweigh the cost:
Without project management, what holds the project team together and provides LEADERSHIP, structure, focus and continuity? Project management provides vision and motivation enabling team members to work at their best.
Great project management unites the customer and supplier as a team and fosters an atmosphere of trust and friendly COLLABORATION. Naturally, this has a positive impact which extends beyond the delivery of the project.
Monitoring and controlling the BUDGET ensures that only the appropriate project changes are included in the budget baseline. The information around authorized changes are communicated and corrective actions are taken appropriately.
Good project management will ensure that the correct RESOURCING is in place, with the appropriate skill set scheduled for the specific task efficiently and effectively in line with the customer’s availability.
Developing a realistic and detailed project plan and timeline is essential to successful TIME MANAGEMENT of delivery including staying on top of deadlines and milestones.
The quality of DELIVERY , is, of course, paramount and a good project manager will ensure that it is done smoothly and securely.
COMMUNICATING and being proactive with reporting the project status and progress clearly and regularly is absolutely key.
As a project progresses, it is likely that risks to the project may emerge. A project manager will ensure that RISK MANAGEMENT is closely monitored and will be integral to steering it back on course.
From the outset, the project manager will set clear expectations of the ROLES AND RESPONSIBILITIES of the project team.
A project manager will always be a POINT OF ESCALATION and a key contact both from the customer side and internally. The project manager will always refer to the Project Sponsor or Supplier Executive where required.
The ERP solution Sage X3, is a powerful and flexible system that can handle complex business processes across multiple industries and geographies. However, Sage X3 also has some specific challenges that need to be addressed by a good project manager. For instance: Sage X3 has a lot of customization options that can enhance its functionality and fit the client's needs. However, too much customisation can also increase the complexity and cost of the project. A good project manager can help balance the trade-off between customisation and standardisation, and ensure that the customisation is done in a structured and consistent way.
Sage X3 has a modular architecture that allows for easy integration with other systems and applications. However, integration also requires careful planning and testing to ensure compatibility and data integrity. A good project manager can oversee the integration process and ensure that it is done smoothly and securely.
Sage X3 has a user-friendly interface that can improve the user experience and productivity. However, user-friendliness does not mean user-readiness. Users still need to be trained and supported to use Sage X3 effectively. A good project manager can coordinate the training and support activities and ensure that the users are comfortable and confident with Sage X3.
Here at Vallestra there are nine key phases where Project Managers are involved in the process of implementing an ERP project:
Analysis / Workshops
User Acceptance Testing
Go Live Readiness
Handover to Support
So, without Project Management who will navigate through the complexities of implementing an ERP Project? It is a fundamental part of an ERP implementation and can make or break its success.
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