According to Investopedia, an enterprise resource planning system (ERP) is the “glue” that binds together different systems within a large company. An ERP system allows data from different systems to be connected and accessed from a central location. However, your business must first an ERP implementation.
ERP implementation includes installing the software, migrating your financial data to the new system and configuring your users, processes, and training your users.
ERP implementations: A step at a Time
It is important to keep things moving forward with your ERP implementation plan, as with any large project. Although it’s natural to be worried about ERP implementation failures, calm and successful ERP implementations can be achieved, especially if you have the first secure leadership and IT buy-in.
Before we get into the details of the ERP implementation process and checklist, it is important to first focus on choosing the right ERP software provider for your company. Choosing the right software can be incredibly important, but choosing a partner to implement your ERP system is just as important.
If you’ve found the right cloud ERP software and the provider you are looking for, you can expect the following results when you implement the ERP technology:
- Streamlined operations
- Simple to use
- You can get a real-time overview of your business from any device, anytime, anywhere.
- A secure ERP platform that adapts to your changing needs.
Also read: Top 10 EPM Software Vendors in 2022
What type of implementation project is it?
Your cloud ERP system implementation begins with determining the type of implementation project. that are three types of implementation projects:
- Express: The implementation is out-of-the-box (OOB) and the customer is one entity. No complex processes or add-ons are necessary.
- Standard: Implementation refers to Single or Multiple entities, which require minimal customizations and add-on solutions. They are single currency and one language.
- Advanced: Implementation can be used for single or multiple entities, with different locations, currencies, and languages. Their integrations and business processes range from simple to complicated. Complex roll-outs involve multiple phases (Template roll-out or Pilot roll).
ERP will assign your partner to recognize the type of ERP implementation. They will then apply the tools and methodology we have created in our Solution Framework. This guide is meant to help our partner organizations navigate the different project types. It also emphasizes that every project is unique and should not be treated the exact same.
ERP implementations should focus on Project Management as the key ingredient to success.
What is Project Management?
Project Management is defined as “the application of knowledge, skills, and tools to manage activities in order to achieve project objectives.”Project management involves evaluating the progress against the original plan and updating it. To achieve this, it is essential to create a Project Management Team that will guide the project from start to finish.
The Project Management Team also includes an Executive sponsor, who supervises the project part-time. The expectations and the resources required for the project are provided by the person who is responsible. He or she will be available to answer any questions you may have or help alleviate any concerns.
A Project Leader is also needed. This leader must be knowledgeable about your business and have previous management experience. He or she should be able to communicate clearly. The leader is the representative of the team to the upper management and is responsible for achieving project objectives.
The remaining Team members will be given their tasks and responsibilities during planning. They should be selected based on their expertise and knowledge related to the task. This is because they will be most directly affected and most eager to see the ERP software implementation succeed.
It is not an easy task to decide whether to upgrade or implement a new ERP software. The team that you create should include people from the entire organization who will be most affected by ERP technology, namely the users. Although a smooth transition from an older system to one that is more efficient and effective cannot be guaranteed, people who are most likely to benefit the most from ERP technology are motivated by the potential results they will see and how quickly they can get them. Organization buy-in is essential.
Important to remember that communication must be exactly What is happening and why? It’s important to keep everyone informed and reduce the anxiety that ERP implementations can cause. Surprises can be good or bad. Your employees, the end users, should understand from the start that ERP technology adoption is a business initiative. They will support the whole process, not just a new program or IT project.
What are the stages of ERP implementation?
Once your team is assembled, you can start the stages of implementation. These are the stages:
- Discovery: Processes that help to define the need, vision, and scope of the project and get commitment from customers to continue
- Plan and Monitor: These are processes that include developing a strategy for completing the work as well as measuring progress and taking corrective action if necessary (this happens throughout the entire process).
- AnalyzeProcesses: This is a deeper level of discovery that involves gathering specific requirements and analyzing the client’s business goals
- Build: Processes that perform the tasks identified by the strategy
- Stabilize: Processes to make sure a solution meets client requirements and is ready to be fully deployed to a live production environment. This also includes the client’s readiness for the solution to be used.
- Deployment: Processes to deploy the solution in a production environment.
- Post Go Live: Processes in place to assist the client after they have implemented the solution. This will lead to project closure
They chose ERP software over SAP. They wanted a cloud-based platform that could scale with their undetermined business model. They also valued being agile and cost-effective. After making the decision, implementation took just five months.
This company manages brick-and-mortar businesses’ mobile loyalty, rewards, and marketing programs. It must efficiently settle thousands of daily transactions. PayWith’s Financial Management suite and Multi-Company Accounting module have seen a 50% increase in its revenue year after year.
Andrew Black, Vice President of Finance, said, “Our accountants used it immediately and then our development team integrated it within a few weeks. It uses common accounting and database protocols, so it is easy to adapt to any background.
ERP stages are clearly demonstrated by the smooth start of the business and continued growth.
No matter if you are working on an Express, Standard, or Advanced ERP implementation project you will have all the resources and methods needed to successfully implement your cloud-based ERP software.
Your partner and your Project Management Team, all of whom want functionality, usability, and flexibility for end users, will be able to expertly manage the stages of ERP technology implementation. Remember that the digital transformation does not end once you have gone live.