Date : September 13, 2022

Category : Enterprise Resource Planning

The ERP Implementation Process Useful In 5 Stages - Watch

The ERP Implementation Process Useful In 5 Stages - Watch

What is ERP Implementation?

The process of implementing an ERP system involves gathering the needs of your organization, picking the software, deciding how to deploy it, moving the data, educating the users, going live, and managing support. Follow these steps to integrate an ERP system with your company's procedures.

For several reasons, such as simplifying operations, lowering the need for manual labor, enhancing customer satisfaction, or unionizing corporate procedures, a company may decide to deploy an ERP system.

Retail, manufacturing, distribution, pharmaceuticals, technology, aerospace and defense, hospitality, accountancy, and construction are a few of the businesses that use ERP software.

What is an ERP system?

The technological brain of a business's operations is its ERP system. It may process a huge amount of data about a business's everyday operations.

ERP offers insightful input to all company divisions and gives information on a variety of topics, including stock movements, demand forecasting, sales, and marketing activities, purchasing, accounting, and more.

By implementing the correct ERP system, you may increase customer acquisition, maintain competitiveness, cut costs associated with running your firm, and perform better. The success of the project becomes the main priority after the choice to adopt an ERP has been made.

5 Stages of the ERP Implementation Process

1. Planning

It takes time to choose and install an ERP solution. You must adopt a calculated strategy. You must learn your corporate goals and the most effective means of achieving them to select the best ERP for your business. Make a reasonable budget and schedule, but be aware that these may need to be adjusted as the project goes along.

The average ERP installation time is between 6 and 9 months, although it can take anything from a few months to a year. Create a change management strategy that takes into account activities like training, data migration, and ROI calculation once the project is completed.

You must devise an adoption plan that is effective for you. According to ERP specialist and consultant David Dozer, Implementing a new ERP is analogous to building a house. Before digging a hole, pouring a foundation, constructing it, running electrical, etc., you must have a floor plan.

It is similar to when an ERP is implemented. I don’t envision advising a homebuyer to establish a minimum viable product for the move-in date and then trying to bring in any smaller features as time permits. Additionally, you shouldn't carry out an ERP deployment in any way.

Take the time to thoroughly examine the current systems in your company during the planning stage. Discover the procedures that are in place and describe even the tiniest issues. Your project management team has to create a business plan and provide updates on current problems. This should specify which procedures are inefficient and what specifications an ERP system stage needs to meet to meet them.

You've already created some general implementation goals. A more thorough examination will be guided by this business case or blueprint. Existing workflows will be documented, allowing your IT staff and the vendor you've chosen to create the system.

3. Design and Development

You will discover process nuances and peculiarities that are exclusive to your business during this phase. The ERP vendor team should work closely with you to evaluate and analyze your current business processes and make suggestions for streamlining and upgrading them to be more in line with the capabilities of the ERP.

Be adaptable—everyone needs to be aware that their regular tasks may change. The team will have a better understanding of which ERP features are essential and which may be added later, perhaps in phase two, by using the process map workflow.

If the program will need adjustments, now is the time to determine what they will be and how to make them. Once more, an industry-specific ERP is invaluable in this situation because it has already been set up to accommodate distributors and importers of consumer goods like you.

The ERP vendor will now collaborate with your internal implementation team to tailor the program to your company's needs. Hardware, connectivity, customer use, and security will also need to be discussed, depending on whether you want an on-premise or cloud ERP.

4. Data Migration and Integration

Your IT team will need to be involved in every step of this process, but they will require the rest of the team's valuable input on what data needs to be moved. Data migration to the ERP system is essential.

As with any migration, there is a chance of data loss or corruption, especially if you're importing data from other apps. Check to see if the data in your present system is still relevant.

Although knowing a customer's past purchases is vital, the information is useless if the customer is no longer in operation. This change provides a fresh start for your team, so now is a fantastic moment to thoroughly clean your database.

Ensure that data standards are consistent to avoid problems or errors. Create thorough data maps to ensure that the right data is in the right places after the migration is finished. It will eliminate duplicate information and simplify complex data from several sources.

5. Training and Change Management

There will be learning curves, as there always are with new technologies. There may be some complaints. It's unrealistic to anticipate that everyone will use the new system properly right away.

Because humans are creatures of habit, this is a significant adjustment. When the ERP is ultimately implemented, the real job starts. The project's continuous success depends on the end user's ability to use the system.

Users can adopt the system and benefit the most from it by setting up ongoing training to support various teams and responsibilities. To aid employees in learning the system, offer more practical instruction. Make sure your tech-savvy staff members receive extensive training so they can mentor the less-skilled staff members.

This means that management must budget funds for fixing problems and providing technical help. All staff need to feel at ease using the system, so thorough training is crucial. They must become accustomed to new workflows and processes.

You can work with your vendor to complete the majority of your training. They will have access to excellent training materials and instructors who are knowledgeable about every facet of the product.

The Advantages of ERP Implementation

lower costs

It enables flexible modularity and scalability.

Enhances Efficiency

It makes use of data quality and security.

It provides facts and information that is current.

Accurate foresight

Increased output

Supply chain management is modified.

Spending Less

Superior customer service.

Dependable data

The Disadvantages of ERP Implementation

Limited Interoperability With Existing Systems

Lack of Functionality

Poor usability

Unnecessary Features

High Prices

Data Problems