Effective ERP implementation requires business focus and leadership support
This case highlights the importance of viewing an ERP implementation as a strategic business initiative to unlock the full potential of the new system. It’s not just about implementing technology; it’s about ensuring strong leadership support, organisational commitment, and effective change management.
Challenge
A large Danish company faced the challenge of upgrading its outdated ERP system, which was no longer supported and functioned more as an accounting tool than an efficient business system. The current system lacked transparency in business processes, leaving the company without the necessary tools to operate effectively and cohesively.
The goal was to implement a modern ERP system that could meet future needs and maintain the company’s competitiveness.
The company approached kaastrup|andersen for assistance in managing the implementation and quickly embraced the optimisation opportunities needed to ensure success.
The ERP implementation was no longer seen as just a technical system project but as a business-driven initiative requiring joint decision-making and support across departments. Additionally, effective change management was essential to equip employees with the knowledge and tools to perform their roles in the context of the new capabilities offered by a state-of-the-art ERP system.
The key role of the consultant from kaastrup|andersen was to act as a trusted advisor - a reliable partner guiding the client safely through the comprehensive system implementation. This was a journey the client had never undertaken before, but one in which the consultant had extensive experience, ensuring a smooth and confident process.
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"When the company shifts its focus and views the ERP project as a strategic business initiative rather than an IT task, it becomes clear that the project requires full support from both management and employees. The system unfolds and becomes more tangible - the functionality supports business processes, making it easier to achieve the system’s full value."
Solution
kaastrup|andersen’s approach to ERP implementation is based on the conviction and experience that technology and organisation must go hand in hand. To address organisational and strategic challenges, the consultant established a dedicated core team composed of key personnel from the business areas.
The purpose was to support the broader organisational anchoring of the ERP project and closely align it with the company’s actual needs. The consultant actively worked on translating business requirements into technical solutions and, through a combination of stakeholder management and change management, increased focus on the strategic importance of the project.
kaastrup|andersen employed tools like RACI for clear responsibility allocation, data governance, and structured stakeholder management. These tools ensured project oversight and control while weekly meetings provided a platform for discussing progress and addressing risks. Through these methods, the consultant and the company actively collaborated to achieve a more effective and strategic implementation.
Based on advice from kaastrup|andersen’s consultant, management also established four central ERP teams - logistics, project support, project finance, and data governance - to ensure the new system supports the company’s key business areas. These teams were tasked with driving the development and embedding of the system. Simultaneously, the newly established governance processes were integrated into the company’s quality management system (QMS), allowing the project to evolve and mature alongside the organisation.
Result
The company successfully went live with the new ERP system and began realising the first business benefits. After the first month of hypercare, core business processes, such as material flow, became fully transparent, supporting the company from procurement to consumption.
The new ERP processes significantly improved the ability to manage and control projects in terms of activities, resources, and finances.
While the company is still in the early stages of its digital journey, it is already moving towards a higher level of maturity. The new ERP system now supports the various departments with increased efficiency and clarity.
This case highlights the critical importance of viewing ERP projects as strategic business initiatives rather than merely technical IT projects. A new ERP system is only as valuable as the organisational support and business understanding behind it.
kaastrup|andersen’s consultants and project managers always approach these types of projects with a holistic perspective, ensuring that the implementation of new systems is not just a technical exercise but a strategic gain for the entire organisation.
At kaastrup|andersen, we are ready to assist you as well. We can help with strategic considerations, system selection, needs assessment, project management, implementation oversight, as well as ongoing operation and maintenance. Learn more about how we work with ERP here.
Contact Thomas Tengstedt for a no-obligation conversation at +45 70 27 77 19 or tte@kaastrupandersen.dk.
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