5 Most Useful ERP Implementation Strategies
The process employed by organizations to integrate and control the vital parts of their businesses is known as Enterprise Resource Planning (ERP). ERP software applications help organizations to implement resource planning by integrating all of the processes needed to run their companies and that’s the reason ERP software applications are important for organizations.
An ERP software system can also combine purchasing inventory, planning, marketing, sales, finance, human resources, and likewise. A few ERP Implementation Strategies are listed below.
Table of Contents
Selection of the Right Implementation Strategy for your Business
Key Stages of applying ERP Implementation Strategies
As your company grows, markets evolve, and technologies come & grow, your ERP system and how you implement it, becomes a valuable part of your organization as a whole. Therefore, following the below ERP implementation stages rigidly will ensure that the ERP implementation for your business has the best chance of succeeding.
Before choosing any ERP solutions, the research phase involves a thorough study by collecting information on an organization’s present procedures and systems to outline the challenge.
This phase establishes a strong basis for the entire ERP implementation process by creating a common understanding of what a successful deployment would entail.
Moreover, in this phase, technical requirements are created to help choose an ERP system and determine if it would be better to provide the system on-premises or through cloud computing.
Following the research stage, a thorough analysis step will be conducted to ascertain the strategic plan for implementing ERP successfully.
A thorough business strategy that defines the project objectives and how they will be met by the ERP implementation plan is often the result of this.
An organization can assess the advantages, dangers, and expenses of the ERP adoption process by creating a detailed business strategy.
The requirements of every organization are unique. So, the first and most crucial step is selecting the appropriate ERP software for your company. Picking the best solution for your company’s operations might be challenging given the wide range of possibilities in the market. As a result, in this step, ERP components that do not meet your needs are eliminated.
One of the most significant digitization initiatives a company will implement is ERP software. Therefore, an ERP implementation plan must be prepared to outline the resources needed, the implementation schedule, and the management strategy for the change.
You must choose the steering committee that will be in charge of completing the project as a core component of the ERP implementation plan. Both technical and non-technical team members will contribute to the software’s development and give comments on its viability.
While you will need to incorporate software end-users in the design, production, and assessment phases to guarantee the final solution is suitable for the purpose, it is also crucial to include stakeholders in the planning department.
When putting a new ERP system in place, it might be simple to exceed budget limits, just like with other significant software projects.
However, it’s crucial to budget wisely and plan for potential obstacles during the implementation phase. Hence, it’s wise to allocate some money in your budget for contingencies right away to cover unforeseen expenses and delays.
This cost estimate can be checked periodically during implementation to make sure it is adequate and can be raised or lowered to reflect the real progress of a project.
The research and planning phase findings are used in the design phase of the ERP implementation procedure to develop a thorough functional design that describes how the ERP will allow advanced operations and procedures from the viewpoint of the end user.
Sequence diagrams, which visually depict the workflow and enable how the ERP system will be encountered by the end-user, are a major output of the design phase. Moreover, to illustrate how data and functions will display within the software, this can be combined with UX/UI wireframes.
The development process can start as soon as the system and design criteria have been approved.
The selected ERP software will be customized by developers to meet the required functionality, process flows, and wireframes. This typically includes a great degree of customization to match the precise needs of a business.
Across the whole development process, developers must provide good documentation in addition to building new software. This makes sure that no data is compromised after the development process and that any adjustments to the ERP system that come afterward may be made fully aware of the process used to create the system initially.
The deployment team will begin organizing the data migration from older systems into the unified ERP system during the migration phase. Since many old systems will preserve data in various forms and database types, this can be a very complicated issue.
The implementation team will need to create rigid guidelines for managing lost or flawed information as well as make sure that inaccurate data is deep cleaned or eliminated before migration to guarantee an effective migration from these older systems.
This is yet another critical phase of the ERP deployment process. In essence, it is done to identify faults and try to fix them before the application process itself.
The purpose of test cases is to identify weak points in the system. Unit testing, integration tests, vulnerability scans, functional testing, and stress testing are some of the several forms of testing.
Once testing is complete and the technical as well as functional aspects are operating properly, the next phase that comes is “Going Live”. Once the system is operational, the old system is eliminated and the new model is used for commercial purposes.
A user of the system will undergo training on how to use it during this phase. Employees are classified together by their abilities, and training is provided to them in groups according to their present skill levels. Every employee receives training for the work that he will be performing.
It is the most crucial and significant stage of implementing an ERP strategy. The words ‘Operation’ and ‘Maintenance of the System’ serve as the foundation for post-implementation. Therefore, the success of the training determines how long this phase will last.
ERP Implementation Strategies
- Properly Set Essentials Before Taking Action
- Assess Your Alternatives
- Record User Procedures
- Single-Step Implementation
- Phased Rollout
Properly Set Essentials Before Taking Action
It is obvious that the scope of your project can be a crucial concern for you. Companies that fail to hold a steady focus on particular system requirements and processes will find that ERP implementation may necessitate added costs and time. A precise scope will assure your project does not pass out of your hand.
Assess Your Alternatives
During the ERP implementation process, inadequately handled and mismanaged evaluation exercises can create serious issues. Businesses with uncertain requirements may proceed to choose the wrong vendor, handle data migration inadequately or result in slowed fulfillment.
One should equip oneself accurately, obtain input from team leads & users, and thoroughly assess both your legacy systems and intended ERP implementation before initiating any important decisions.
Record User Procedures
To understand how users interact with legacy systems, evaluate and improve workflow and equip users with the brief instructions required to steer a new feature-rich working environment, proper documentation is required. One must create and maintain documents describing pivotal user routines and procedures, both before and during ERP implementation.
Through the single-step implementation model, all users move to the new system in a go. Single-step ERP implementation grants an easy and straightforward way to control the process which is ideal for smaller operations and businesses that may have few users. This in turn helps you to focus easily on your project scope and implementation parameters.
Switching to the latest system incrementally over a lengthened period of time can enable early implementation of essential features, and assure that any complications or issues are secluded from working processes that have already been taken online.
Further, being more manageable than a single-step approach, the phased rollout system implementation approach may involve a more prolonged process, particularly for companies that keep modifying the parameters of an implementation project.
Selection of the Right Implementation Strategy for your Business
There is not any static rule which helps you in implementing the right strategy for your company. Several aspects need to be considered before the selection of the most appropriate one. Let’s dive into them.
The Scale of a Company
The scale of your company is the first and foremost aspect that is required to be taken care of. Large companies oftentimes prioritize phased rollout strategy over Single-time implementation but it might get them into jeopardy because of the vast number of branches at distinct locations.
Companies always need to keep in the mind their risk capacity. Rolling out a new system where business processes are highly interdependent, might land them in a really big problem.
Return on Investment
How long a company can wait for the return on their investment is also an important aspect in the selection of the right approach. If they are looking forward to getting an immediate return on investment then rolling out the ERP strategy in the fastest-growing processes is a good option. In another case, deploying all at once would be the best.
Cost is a real concern for any company considering switching from the old system to the new one. Because this is not a one-day process. It can take a bunch of days and in the meantime, companies will have to pay for both licenses.
ERPs enable companies to promptly access required information for vendors, business partners, and clients offering enhanced employee and customer satisfaction, increased accuracy rates, and quicker response rates. And employing proper and planned ERP software Implementation will help you deliver the project efficiently and more profoundly.