Enterprise resource planning, or ERP implementation can be a complicated undertaking that affects many parts of any business. As with any major project, a carefully designed implementation plan is crucial. Dividing your implementation into steps, each with clear objectives can maximise the success of the project. It is wise to consider a plan that has clear direction, scope and structure. This will mean there will be less likelihood of encountering significant problems later.
What Is an ERP Implementation?
An ERP system integrates functions across the business, such as financial management, sales and manufacturing and human resources that deliver benefits to the organisation such as increased productivity and efficiency. ERP implementation describes the process of planning, configuring and deploying an ERP. When considering implementing an ERP system, the process typically continues over a few months due to the complexity that an ERP system supports and automates (usually across many different business functions.
An organisation needs to carefully define its requirements, determine how to redesign processes to take advantage of the system, configure the ERP system to support those processes and rigorously test it before deploying it to users to ensure a successful implementation.
The Key To A Project’s Success Is To Effectively Navigate All The Steps With Careful Planning And A Structured, Phased Implementation Approach.
What Are the Steps of an ERP Implementation Plan?
A typical ERP implementation plan can be divided into six steps, each with specific objectives. Every business is unique, so the steps taken may vary somewhat depending on the company, sometimes even, overlapping.
1.Planning
All ERP projects start with the planning phase, which includes researching and selecting a system, setting up a project team and then, defining detailed system requirements.
The project team will handle a broad range of roles related to the implementation, including laying out the project plan with target dates, ensuring adequate resources are allocated, making product and design decisions, and the day-to-day project management.
The ERP project team usually involves an executive supporter, a project manager and representatives from the departments that will be using the system. Involving senior management is critical to ensure that the project gets the resources it requires as well as provide the backing needed to implement change across the organisation. The team also may hire an external consultant or ERP implementation partner to provide expertise in the design and configuration of the system. It may also include any internal specialists involved in implementing the system, such as a representative from IT.
The team’s first goal is to develop a detailed understanding of current issues, including process inefficiencies and the requirements for the ERP system.
One major decision is whether to use an ERP system that runs on-premises or in the cloud. For an on-premises system, you would need to buy and install hardware and software in your organisation’s data centre. This can be done by an external expert company specialising in ERP. In contrast, cloud-based ERP is generally provided as a subscription service accessed via the internet, so it can be faster to implement and requires fewer in-house IT skills.
2.Design
The design phase works by identifying the detailed requirements and having an understanding of current workflows to develop a comprehensive design for the new ERP system. This includes designing new, more efficient workflows and other processes that will benefit from the system. A good idea is to involve users in the design phase since they have the most intimate understanding of current business processes. Involving them in the design also helps to ensure that they’ll be more accommodating in using the new system and will take full advantage of it.
Gap analysis can be used to identify process intricacies and unique quirks that may require the customisation of the ERP software. This may help in making changes to workflow processes that work better with the ERP system itself. The team can present the gaps to its implementation partner or supplier and ask them to offer potential solutions.
3.Development
Armed with clear design requirements, the development phase can begin. This involves configuring and, where necessary, customising the software to support the redesigned processes. It may also include developing integration with any of the organisation’s other existing business applications that won’t be replaced by the ERP system. If you’re using an on-premises ERP system, the organisation will need to install the necessary hardware and software.
Parallel to software development, the team should develop training materials to help users adjust to the new system. It also needs to begin planning data migration, which can be complex since it often involves extracting, transforming and loading data from multiple systems, each of which may use different formats and may hold duplicate or inconsistent information. The project team should determine which data to migrate in this phase, avoiding the blanket migration of all historical data, lots of which is likely irrelevant.
4.Testing
Testing and development could happen simultaneously, meaning the project team may test specific modules and features, create adjustments based on the results, and retest. Alternatively, they may test one ERP module while another is still in development. The initial testing of the basic functions of the software should be followed by rigorous testing of the full capabilities of the system. This includes allowing specific team members to test the system for all their day-to-day functions.
It’s ideal to have this phase encompass testing of the migrated data and include introductory end-user training. Most vendors offer pre-and post-deployment tools to begin user training. But in addition to vendor support, the organisation should make good use of the training materials created in the development phase as there is real value in resources that specifically cater to your end user’s day-to-day responsibilities.
5.Deployment
Finally, it’s the payoff, this is what you’ve been striving toward: the day the system goes live. Remember though that to be prepared for potential issues, since there are a lot of moving parts as well as employees that might feel overwhelmed, despite your best efforts to prepare them for this
day. The project team should be readily available to help users understand the system and answer any questions that they may have as well as troubleshoot any issues. Be patient, it may take time for users to adapt to the system and achieve the anticipated productivity gains.
Data can be migrated ahead of deployment, while other information—such as current transactions—should be migrated just before going live.
Some organisations aim to deploy all the modules of the ERP system concurrently, while others focus first on specific high-priority modules or processes and add others later in stages. To minimise risk, some organisations also continue to run older systems in parallel with the new ERP implementation for a time, although this can add to the overall project cost and reduce user productivity.
6.Support & Updates
Nurturing your ERP implementation after deployment helps to keep users smiling and makes sure that the business is achieving the desired benefits. The project team may still be responsible for the ERP system during this phase, with the focus shifting more to listening for user feedback and adjusting the system accordingly. Some additional development and configuration may be required as and when new features are added to the system. New staff will also need to be trained on the system.
If you have an on-premises ERP system, you’ll need to install periodic software updates and may even need to upgrade hardware over time. If you’re using a cloud-based ERP system, your vendor may update the software automatically.
The above steps in the various phases when considering an ERP System implementation will help to ensure that the project runs smoothly. There will be pitfalls along the way and when people and machines are combined there will be frustration and doubt. The best advice is to implement the system through a reputable company that offers a solution for your unique business’s needs.
If you want to know more about how IIT Solutions can assist your business to grow with a tailored made ERP offering, get in touch with us today!
