5 Mistakes avoided with S.A.P implementation in Automotive

 

Introduction

SAP is a tried-and-true business management platform that can provide considerable value to your organization. However, if an implementation isn’t managed properly, it can end up being a disastrous failure that costs your company millions of dollars and sets you back months – or years – in terms of achieving strategic objectives. A lot of companies learn this lesson the hard way, but you don’t have to be one of them. By avoiding these five common errors, you will save yourself a lot of pain and aggravation in the long run:

1.   Not using SAP recommended implementation approach and methodology

You should not take a piecemeal approach to implementing SAP.

SAP recommends that you implement it in phases, and follow a methodology that has been proven over time to work best. By doing so, you can minimize risk and ensure that your organization gets the most value out of the implementation project.

An SAP implementation partner with experience in automotive is vital for success. We have taken part in many successful implementations and can help you avoid these common mistakes by applying our experience and expertise to your project team.

2.   Underestimating the effort and costs of data migration

It is an activity that you cannot underestimate.

Data migration is a high-risk activity and not a one-time activity, it’s long term and complex, resource intensive and high priority, critical and expensive. It should be treated as an underestimated activity which requires constant attention throughout the project lifecycle in order to avoid issues down the road and ensure an efficient transition. Data migration can take place in an iterative manner or all at once depending on the level of complexity and amount of data involved but either way it requires careful planning in order to avoid data loss or corruption during the process.

Cost and Efforts

3.   Not focusing on change management

Change management is crucial when implementing a new system. Whether you're an IT consultant or a Chief Information Officer (CIO), it's best to plan out how your company will handle the changes that come with SAP implementation. Here are some tips for change management on this journey:

• First, develop a plan for what needs to be done and by whom.
• Next, create a communication strategy so staff knows how they fit into this process and what kind of changes they can expect over the next year or two.
• Create training programs for those who will be using SAP, as well as any other necessary stakeholders who will be affected by its implementation—for example, manufacturing personnel or even quality assurance teams may need special attention if they're being impacted by software updates.

4.   Not adequately managing your third-party consultants

Make sure you have a clear understanding of the consultant’s role. It is important to note that consultants may not be able to develop or implement your project, but will rather serve as an advisor or coach. Make sure you understand their capabilities and background before engaging them on your project.

Understand the communication style of your third-party consultant. This is particularly important when dealing with outside organizations where cultural differences may exist between yourself and those working within these firms. A good way to accomplish this is by having regular discussions about progress made and any problems encountered along the way (both in person, via phone/Skype calls).

5.   Make sure you avoid these mistakes.

As an automotive company, it’s important to avoid the following mistakes:

• Not understanding your business needs and what’s required for a successful implementation
• Not having enough resources committed to the project
• Not using a best practice approach (examples include taking advantage of multi-plant capabilities and using SAP recommended implementation approach and methodology)

Summary

We hope this list of mistakes to avoid when implementing SAP has been helpful. If you have more specific questions about your own implementation journey, please don't hesitate to reach out to us for advice and guidance.