What is an ERP product owner?
The term “product owner” originally comes from agile software development. Applied to ERP projects, it describes a person who forms the interface between specialist departments and IT. The ERP product owner bears technical responsibility for the system and ensures that the software optimally supports the actual business processes.
In practice, this means that they represent the interests of the specialist departments and at the same time ensure that technical solutions are implemented realistically, efficiently and sustainably.
Tasks of an ERP Product Owner
The tasks of the ERP Product Owner are varied and change depending on the project phase. The most important activities include
- Requirements management: The product owner collects, prioritizes and describes the requirements of the various specialist departments and translates them into a form that is understood by both the specialist side and IT.
- Prioritization and roadmap planning: The product owner determines which functions or processes are to be implemented and when, always in line with the budget, resources and schedule.
- Communication and mediation: As the central interface, the product owner ensures clear and continuous communication between all those involved – from management to the specialist departments and the implementation team.
- Acceptance and quality assurance: The product owner checks whether the delivered ERP functionalities meet the requirements and releases them for use.
- Change management: ERP projects often involve far-reaching changes. The product owner accompanies this change, explains new processes and promotes acceptance within the company.
Responsibility and influence
The role of the ERP product owner is associated with a high level of responsibility. He is the technical contact person, decision-maker and “entrepreneur in the project”. They have to set priorities, weigh up opportunities and risks and sometimes make uncomfortable decisions if certain requirements cannot be realized.
If the role is not clearly defined or weakly staffed, there is a risk of typical project risks: unclear requirements, lack of user acceptance or ERP solutions that do not meet actual needs.
Advantages of an ERP Product Owner – and risks of not having a role
Advantages if the role is clearly filled:
- Focused responsibility: There is a central contact person who makes decisions and sets the direction. This avoids delays caused by endless coordination.
- Higher quality of results: The product owner ensures that the solution really meets the needs of the specialist departments and remains practical.
- Better communication: Loss of information is minimized because the product owner acts as a “translator” between the business side and IT.
- Faster decisions: Many ERP projects fail due to slow decision-making processes. A clearly designated product owner can speed up implementation here.
- Greater user acceptance: Processes are designed together with the specialist departments, which increases acceptance within the company.
Risks if the role is not clearly defined:
- Unclear requirements: Without a clear product owner, it often remains unclear what the ERP system is really supposed to do. This leads to undesirable developments and rework.
- Fragmented responsibility: Several people “have their say”, but no one feels responsible. This slows down decisions and leads to frictional losses.
- Lack of priorities: Everything seems equally important. Without a product owner, there is no authority to prioritize and strategically organize requirements.
- Lack of acceptance: If the ERP system is developed without close involvement of the specialist departments, there is a risk of resistance during subsequent use.
- Cost and time overruns: Unclear roles often lead to projects taking longer and becoming more expensive than planned.
Conclusion: Why the ERP Product Owner Determines Project Success
An ERP system is not a sure-fire success. It needs someone who takes on technical responsibility, structures requirements and keeps an eye on the big picture. The ERP Product Owner takes on precisely this key role. Companies that fill this position early on and provide it with clear competencies create an important basis for successful ERP projects – and for a system that delivers real added value. If this role is missing or remains vaguely defined, the risk of delays, unnecessary costs and an ERP system that fails to meet the company’s needs increases.
