Enterprise Resource Planning (ERP) systems are rapidly changing the face of business operations. By streamlining processes and data management, ERPs support companies in achieving productivity and improving decision-making for a boost in output.
But the implementation of ERPs can BE complex and daunting for businesses. It requires a vast amount of time and resources. A structured approach can unlock the full benefits of an ERP system. But the challenge is doing this effectively.
In this blog, we share our top 10 steps for achieving a successful ERP implementation that eases the process and brings long-term results.
What is an ERP system?
An ERP system is a type of software that helps organisations to automate core business processes. It results in one system that allows everyone in your organisation to view the same information and drive optimal performance.
ERPs contain modules and features that promote collaboration, data management and analysis. They can therefore support you in managing day-to-day activities, such as manufacturing, supply chain operations, procurement, finance and reporting.
Crucially, they should provide transparency into business processes by offering thorough performance tracking across your organisation.
What are the main types of ERP systems?
ERP can be classified into two main models: on-premises or in the cloud.
On-premise ERP systems are installed and function on an organisation’s own server. This gives you full control over the software, security, hardware and the maintenance of the system.
You can customise on-premise ERPs to meet the bespoke requirements of your business. IT personnel and specialists will be needed to regularly update the software and keep it in good working order.
Cloud-based ERP systems, on the other hand, are hosted on remote servers and can be accessed over the internet. Employees can use the software once they log onto their organisational computer.
Cloud ERPs reduce the need to house extensive IT infrastructure and resources. This lowers operational costs and helps businesses to function in a more agile manner.
Examples of cloud-based ERPs include Microsoft Dynamics 365 Business Central, Dynamics 365 – Microsoft Finance and Operations and the Power Platform.
Whether you choose an on-premise or cloud-based ERP, you must implement it effectively. Successful ERP implementation requires the right mix of expertise and software to achieve a desired output. We’ve listed ten steps to help you get there.
1. Define clear objectives and the scope of work_
The path towards a successful ERP system implementation starts with a clear plan.
To begin, define the aim for the project and how it will be achieved. This will guide the entire process. You should be able to articulate succinctly the business activities that the ERP system will improve, such as customer relationship management, financial management and supply chain.
Having this clear understanding will lay the foundation for the implementation process.
2. Create a reliable ERP implementation team_
Assembling the right team is key to the success of any ERP project. By putting together experienced specialists from across different departments in your organisation, you will gain a breadth of knowledge to support the implementation process.
Find a project manager to lead the project, map out timelines, manage resources and execute. You should also hold regular reviews to track and progress ensure the success of the project.
3. Conduct an extensive business analysis_
Businesses seeking to implement a successful ERP strategy should conduct a comprehensive analysis of their existing business processes. This will identify any inefficiencies and areas requiring improvement, making it easier to align the ERP system with the specific needs of your business.
Additionally, it offers the opportunity to design new processes that solve problems identified during the analysis.
4. Choose the right ERP system and vendor_
Selecting the right ERP vendor is crucial to the success of the implementation project. Companies need to conduct extensive research and evaluate different ERP software, so they can compare features, compatibility, scalability and flexibility with their IT infrastructure.
Consider factors such as vendor reputation, implementation guidance and cost of ownership when deciding on the right vendor to proceed with.
5. Develop a comprehensive implementation plan_
An effective plan is the framework for a an effective ERP implementation. Inform all parties of the detailed tasks and responsibilities expected of them to achieve the desired goal.
Establishing realistic timelines and goals is also crucial for the ERP strategy, as it ensures the effective management of resources. Complex tasks should be broken down into simpler activities to allow for a seamless rollout and execution.
6. Adequate user training_
Employees need to be given adequate training on the integral components of the ERP system. By educating staff on the features of the software and its benefits, they can effectively use it to gain improved outcomes.
Once comprehensive training is provided to all users, your organisation can get full value from the ERP system and drive effective change management. It will also ensure the buy-in from everyone for a smooth adoption across the business.
7. Data accuracy and migration_
Your ERP system implementation relies on the accuracy of the data provided.
Before beginning the migration, existing data should be evaluated to check that the information being fed into the system is precise.
A well-outlined data migration strategy stating processes, tools and methodologies should also be designed to make the transfer to the new system seamless.
8. System configuration_
To ensure the full utilisation of the features within the ERP system, it’s important to configure the entire system adequately. It is recommended that configuration is done by skilled IT consultants, who should be largely involved in the migration for risk assessment and to prevent any loss in resources.
Configuration is a crucial step in the implementation process, as it ensures that the various features of the software meet the requirements of the larger organisation.
9. System testing and quality assurance_
After going through all the above steps, intensive testing and quality assurance must be undertaken so that any problematic areas can be rectified before the ERP system implementation is finally launched.
Testing should include scenarios covering different processes and user data. This will ensure the seamless performance and operation of the software.
10. Go-live and system maintenance_
The final step in the process is the ongoing maintenance of the ERP system. Regular evaluations, including upgrades, are needed to ensure the smooth performance of the application.
The system should be monitored closely in the initial stages for any teething issues to be addressed. Collect user feedback too, as this will uncover any enhancements needed.
IT personnel should also manage updates provided by the ERP vendor, so that new features are fully leveraged.
Advanced ERP implementation for business transformation_
ERPs facilitate businesses in driving innovation and development across the board. By establishing clear objectives prior to implementation, organisations can benefit more from the smart functionalities of systems.
ERP implementation requires comprehensive planning and an adequate strategy. By doing this effectively, you can ensure higher productivity and cost savings. However, it’s crucial to put in the time, effort and skill from the beginning of the process to guarantee results.
For more information on how to conduct an effective ERP implementation within your organisation, you can contact our experienced team of specialists.
