8 Phases of an ERP Implementation Plan

Many businesses struggle with ERP implementation. After all, it can be a complex and challenging process.

But if you are concerned about the potential pitfalls, you should know that there’s an effective ERP implementation process that can help almost all companies develop an effective ERP implementation plan.

And if you want to know how to implement an ERP system efficiently, you should follow the 8 implementation steps we outline below.

What Is ERP Implementation?

ERP implementation is the process of deploying an Enterprise Resource Planning (ERP) system within an organization. An ERP system integrates various business functions — such as finance, human resources, supply chain, and customer relationship management — into a single software platform. 

Why do companies do this? 

To streamline operations, enhance data accuracy, and to give themselves the best view of their data to make better decisions.

However, ERP implementation is more than just software installation. You have to undergo a wholescale organizational change. And the success of an ERP implementation depends on your thoughtful planning and business requirements.

How to Implement an ERP System: 8 Implementation Steps

Although there are several phases involved in implementing an ERP system, each phase has its own designated tasks. Here are the 8 steps of every implementation plan:

1. Preparation and Planning

The foundation of successful ERP development and implementation lies in thorough preparation and planning. 

You should first define your project’s goals and objectives. Ask yourself: what do you hope to achieve with the ERP system?

Whether it’s improving efficiency, reducing costs, or enhancing data visibility, you should guide your implementation strategy with clear objectives.

Next, you need to assemble an implementation team — one with key stakeholders from various departments and a dedicated project manager. You should also make sure to have a sponsor who can champion the project, remove roadblocks, and align the implementation with business goals throughout the implementation. You should then consider forming a committee to provide strategic oversight so that you can collaborate on decisions throughout the process.

Last but not least, you and the team need to conduct a comprehensive needs assessment to determine the specific functionalities required from the ERP system.

Sub-steps in Preparation and Planning:

• Goal Definition: Clearly define the project’s objectives and expected outcomes.
• Team Assembly: Identify and assign roles for the project manager, executive sponsor, and other key team members.
• Needs Assessment: Evaluate current processes and determine the necessary ERP system functionalities.
• Risk Management: Identify potential risks and develop mitigation strategies.

2. Choose the Appropriate Implementation Partner

Too often companies select an ERP Solution based upon name recognition. 

It is entirely appropriate to identify an ERP implementation partner or VAR that has deep experience implementing solutions in your industry and vertical. The ERP Marketplace can be a confusing and intimidating realm. Draw on the experience of a team that can map out and identify the requirements of your organization. 

Choosing the wrong implementation partner can result in a failed and costly project. Some of the larger software companies will assign an implementation team to your project. These folks may have little experience.

3. Design and Customization

Once you’ve selected your ERP software, the next step is to design and customize the system to fit your business processes. 

To do this, design the workflows and configure your ERP software. You should define user roles, set permissions, and establish data fields for effective reporting.

But if you want to make this implementation step easier, collaborate with your ERP vendor. At Clients First Business Solutions, we work with our clients to customize the ERP software and tailor the system to their business needs.

You should never have to struggle to fit your business within an ERP software framework.

Sub-steps in Design and Customization:

• Configuration: Set up the system’s architecture to match your organizational structure.
• User Roles: Define roles and permissions to ensure data security and process integrity.
• Reporting: Customize reports to provide relevant insights and analytics for decision-making.
• Integration Planning: Ensure that the ERP system integrates smoothly with other software solutions.
  
  

4. Data Migration

Data migration is arguably one of the most important ERP implementation phases. That’s because it involves the transferring of existing data — such as customer information, financial records, and inventory data — into the new ERP system.

The data transfer needs to be accurate, consistent, and clean, so make sure you begin with a thorough data audit before the transfer even starts. Then, once you begin the data transfer, rectify any discrepancies, duplicates, or outdated information. 

Another great process is to test the data transferring before completing the actual process. (We’ll talk about this in the next phase.)

For now, just remember that your goal in this implementation step is to ensure you receive high-quality data that enables the ERP system to function properly and provide you with data, in the future, to make effective decisions.

Sub-steps in Data Migration:

• Data Audit: Review existing data for accuracy and completeness.
• Data Cleansing: Remove duplicates, correct errors, and standardize formats.
• Data Mapping: Define how data from the old system will be transferred to the new ERP system.
• Validation: Test the migrated data to ensure accuracy and integrity.

5. Testing

Testing is another important step of ERP implementation, especially before you actually push the ERP system live. As we mentioned before, you want to run a series of tests to ensure that all functionalities of the ERP system work effectively — as expected — and that the system can handle real-world scenarios and capture all data correctly.

In fact, it may require multiple rounds to identify and resolve issues. But addressing these problems before going live will save you and your team time and reduce disruptions later on.

If you have any problems with this step, you should also contact your ERP system’s administrator.

Sub-steps in Testing:

• Unit Testing: Test individual modules or components of the ERP system.
• Integration Testing: Verify that different modules work together seamlessly.
• User Acceptance Testing (UAT): Involve end-users to validate that the system meets their needs and is user-friendly.
• Performance Testing: Assess the system’s performance under various load conditions to ensure it can handle peak usage.

6. Training

After the system has gone live — or even before — you should make sure all teams handling the ERP system are properly trained. The system’s effectiveness depends on it.

Develop a comprehensive training program tailored to different user roles within your organization, or ask your vendor to provide you with training opportunities. If you develop your own, here are some things you could include: 

• Provide hands-on training sessions
• Video guides

• Step-by-step instructions
• Offer additional support

Sub-steps in Training and Change Management:

• Training Needs Assessment: Identify the training requirements for different user groups.
• Training Development: Create customized training programs and materials.
• Change Communication: Regularly update employees about the project’s progress and benefits.
• Support Systems: Establish ongoing support mechanisms to address any issues post-implementation.

7. Go-Live and User Readiness

The go-live phase is when the ERP system is officially deployed, and all users start using it for daily operations. To ensure a smooth transition, consider a phased go-live approach, where the system is rolled out gradually across departments.

Before going live, it’s essential to ensure both system and user readiness, which includes: 

• Provisioning user accounts
• Conducting final system checks
• Ensuring that all users are prepared

In other words, establish clear “go” and “no-go” criteria that steer the committee and executive sponsor to make the best decision.

Sub-steps in Go-Live and User Readiness:

• System Readiness: Complete final system checks, address any remaining issues, and set initial values (e.g., starting purchase order numbers).
• User Provisioning: Provide users with credentials and access to the system.
• Go/No-Go Decision: Review readiness criteria with the project team and obtain unanimous approval to proceed with the go-live.
• Communication: Inform the organization of the go-live date and provide guidance on support resources.

8. Post-Implementation and Continuous Engagement

After the system goes live, you should focus on monitoring performance, supporting users, and planning for future improvements. It’s also important to celebrate the success of the project with the team.

Not to mention, post-implementation is a great time for ERP implementation as a whole. You can reflect on the process, document lessons learned, and make any adjustments. 

That way, you can establish an even better plan for ongoing training, discover ways to optimize the system, and develop future ERP enhancements.

Sub-steps in Post-Implementation:

• Performance Monitoring: Regularly track system performance and user feedback.
• Lessons Learned: Conduct a post-mortem review to identify successes and areas for improvement.
• Continuous Training: Offer ongoing training sessions to deepen user knowledge and skills.
• Future Planning: Begin planning for the next phase of ERP implementation or additional system enhancements.

Use Clients First Business Solutions for An Effective ERP Implementation Process

ERP implementation is a complex process that requires careful planning and collaboration, but by understanding and following the key ERP implementation phases listed above, you can ensure the success and growth of your organization.

However, you need to have an ERP vendor willing to offer you continuous support and system optimization — when you need it — to be able to scale and grow effectively without issues.

If you’re ready to undergo a seamless ERP implementation and want to know how to implement an ERP system with Clients First Business Solutions, contact us today!