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