Weathering the Storm of ERP Transformation & Integration

ERP transformation is consistently thought of as a painful task, but it doesn’t always have to be. During this month’s Finance Transformation Digital Summit, a panel of four ERP transformation experts explained how to turn it from a painful years-long slog to a smooth and successful integration.

The session, titled “Weathering the Storm of ERP Transformation & Integration” welcomed Vandana Khanna, Senior Director of Global Finance Transformation for Johnson & Johnson, Conor Kellett, Finance Transformation & Operations Lead for Pfizer, Andras Kohl, Head of Finance Business Services - CE for TESCO, and Michael Perica, EVP and Chief Financial Officer for Rimini Street. During the session the panel discussed how to identify the right ERP operating model, the advantages of an intensive preparation schedule, and much more.

The following are three takeaways from the session, but if you are interested in more insights, watch the entire recording above.

1. The largest challenge for finance organizations when undergoing ERP transformation is getting buy-in from business partners. Business partners often view ERP transformation as a negative event, and it is important to change their perspective and view it as an opportunity to improve their processes.
2. ERP transformation is a journey, not a sprint. It is important to have consistent messaging from leadership about the long-term benefits of ERP transformation. There will be painful moments in the short-term, but it is important to communicate the success and acknowledge the progress along the way.
3. To balance the short-term needs of stakeholders against focusing on growth and profitability, organizations should think of systems and technology in terms of three tiers:
   1. Systems of record: These systems are essential for maintaining the day-to-day operations of the business. They should be reliable and stable, but they do not need to be the latest and greatest technology. 
   2. Systems of differentiation: These systems can help organizations to compete more effectively in the marketplace. They should be aligned with the business strategy and deliver measurable benefits. 
   3. Systems of innovation: These systems are used to explore new ideas and to develop new products and services. They should be flexible and scalable, and they should be able to adapt to change.