3 key stakeholders for your ERP requirements analysis

Who are the stakeholders that must be satisfied to ensure the success of an ERP project? The answer will vary in each organization.

Your boss is always the first person to satisfy, as your success partly depends on making your boss look good. Your boss reports to someone else, and everyone wants to appear favourable to their superior.

ERP, like most projects, should have an executive champion. This person will use their influence to support or hinder the ERP project and is definitely a stakeholder.

Recommended reading: Our guide to selling your ERP project to senior management will help you secure executive buy-in for new software.

Concerning ERP requirements analysis and the success of the project there are three groups that should be considered key stakeholders.

1. ERP users with the most to gain

Some department or function experiences the most pain from the current ERP and will benefit the most when the new ERP is implemented. They might not be the ones who complain the loudest or most often today.

For example, Production might spend hours managing jobs, but they do so quietly and have persevered for years. An ERP that meets their needs can perform the work of several people and speed up the process of getting jobs into production. While complaints may come from Sales, the greatest benefits are seen in Production. Ultimately, the enterprise succeeds.

2. ERP users with the most risk

When we define requirements, we assume the whole enterprise will benefit. But we also take steps toward the unknown, and need to recognize that there are risks.

Recommended reading: ERP Implementation Guide - 11 Steps to Success

One successful business I knew of used a well-known ERP and used other software in parallel to manage the ingredients, temperatures, and pressures required for its process. Using two systems worked but required duplication of effort, and improving the process's throughput was difficult.

When we define requirements, we make an assumption that the whole enterprise will benefit. But we also take steps toward an unknown, and need to recognize there are risks.

Their initial requirement during the ERP selection process was to improve process speed and reduce variation in the time needed for batch production. Engineering had to accept some risk and trust they could keep their processes within the ERP. Because of that, their input during ERP requirements analysis is essential to keep them engaged with the project.

3. ERP users with the most political power

There is usually one function that manages an organization. Often, Sales is that department. Maybe, the CEO came from sales, and the head of quality was once a sales executive. Even the CFO was a VP of sales in the past. Finance often plays this role, but whichever group it is in your company, they probably control IT. That control may be role-defined or political, but you need these stakeholders to support the ERP project.