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admin
- May 23, 2022
From simple business management software to an integral part of business, an ERP solution has come a long way in fine-tuning business processes and accelerating overall business growth. The complexity and diversity of business activities across all countries and time zones have introduced unwarranted chaos. This is where an effective ERP solution, with its far-reaching effects, turns chaos into a systemic design for continuous positive results for the company. It streamlines and accelerates business processes, giving the company a competitive edge.
Here are the 8 crucial steps to successfully implement an ERP solution:
1. Identifying the problems
ERP provides a comprehensive solution to many of the problems that companies face. However, it is crucial to define the real purpose of ERP implementation. The question is not so much ‘is it worth implementing’ but ‘what is the purpose of implementing ERP.’ Key performance indicators (KPIs) need to be analyzed to understand the need to implement the software.
KPIs are necessary not only in relation to the present but also because future projections are included in the application list, allowing the business to consider scalability and adaptability to changes in the future of the business/industry. So, again, it is crucial to identify the problem or exact need prompting the ERP implementation.
2. Defining the scope
Objectives can be many, ranging from the transparency of operations to financial controls, support for organic expansion, support for the acquisition, or support for standard processes. According to the Panorama study, 61.1% of ERP implementations take longer than expected, and 74.1% of ERP projects go over budget. The main reason for delays and budget overruns is the unclear definition of ERP requirements.
ERP functions must be evaluated according to the barometer of synchronization within the company’s needs. Depending on the budget and basic needs, a list of ERP requirements should be drawn up that will ensure a smooth and seamless ERP implementation.
3. Brainstorm
According to Capterra, about 33% of ERP buyers have not been shown the product before purchase, and about 22% of companies surveyed reported that they bought the first system they saw. This is a dangerous statistic, not only for those implementing ERP but also for vendors, because the optimal use of ERP software remains a dream. To use ERP software successfully, company management must evaluate the options available.
An organization needs to clearly understand the difference between configuring an ERP package and customization. In many cases, the purchased ERP system meets the requirements, and customization is not required. Evaluating ERP options is a critical task, as options must be evaluated based on current needs and future requirements.
New add-ons, such as a cloud ERP solution or SaaS ERP, are the current preference of customers, as these options – are available in varying amounts and flexibility to meet future requirements. Thus, the company needs to brainstorm with ERP vendors/consultants to implement the best system in the organization.
4. Data migration
Once the ERP solution has been identified, the next most significant and most crucial step is data migration, ensuring a smooth transition and use of the software in the future.
Implementing ERP can be a considerable change, especially if the company is trying the software first. It is essential to determine what data is needed to transition successfully to standard software. Most software allows you to enter data, but transferring whole data can burden the software.
Therefore, only the necessary and most important data should be transferred to the software, and care should be taken to ensure that this data is extracted from the software when necessary.
5. Preparing the infrastructure
Preparing the company for ERP implementation lies at the heart of all phases of ERP implementation and plays a vital role in the process, be it success or failure. After a detailed brainstorming session between the vendor and company management, the necessary infrastructure is established.
6. Customization
ERP software is developed after a considerable amount of research and according to the needs of a particular industry. In some cases, customization may not be necessary. Implementing an ERP solution is a significant investment decision for a company involving a large number of resources, so management must constantly monitor the ERP software and its maintenance schedule.
During pilot testing, management should assess the realization of the system’s value against the desired value of the company.
7. Project management and testing
After evaluating all available options, selecting the best-suited, and then training the employees, the actual implementation aspect is the project implementation itself.
The rigidity may backfire since there are a lot of time gaps between the processes of selection, evaluation, and implementation. There is also a lateral improvisation that should be incorporated. Simultaneously, the core objective should not be diluted or changed. Testing is an important phase of the implementation process, which involves system and user acceptance testing.
8. Go live & ongoing support
Once the ERP solution is properly-checked and implemented, it is time to go live. It is advisable to pursue one additional functionality test as a safety precaution. An ERP solution is not a one-time event but rather a continuous process. It is something that the company has to continuously keep tabs on to avoid any aberrations or systemic glitches which could affect the ERP software functionality.
Finally, regular updates of the vendor software are one of the post-implementation solution requirements. Maintenance should also be carried out periodically as an aspect of ongoing support, which helps to ensure that the solution runs smoothly.