Implementing an ERP (Enterprise Resource Planning) system for the first time can be very tough, especially considering the cost of implementing an ERP, the time and careful planning required to actually see the benefits to your organization. The transition can be challenging since you and your employees need to adapt to the new system and learn how to use it effectively. The biggest obstacle is not only changing the existing system, but it also greatly impacts your company culture.
However, taking this step can be highly rewarding if implemented properly. It can help you synchronize all of your information and streamline your business operations, as well as significantly improve communication and collaboration across company departments.
An ERP system is great for reducing costs, and by improving collaboration, it can help you considerably boost productivity and efficiency, which will lead to high-quality customer service and enable you to stay ahead of your competition.
There are many reasons you should utilize ERP software, but how can you make sure that you have implemented it successfully?
Here are the 8 essential steps you need to take for a successful ERP implementation as long as you first identify your objectives and determine exactly what your needs are, choose a project manager to ease the implementation process, and find the right ERP software for your needs:
1 | SYSTEM DOCUMENTATION
The first step is to gather documents that describe the system itself and its parts - which include documents that describe each company/departments specific business process requirements, workflow descriptions, FAQs, etc.
Successful documentation makes information easily accessible, provides a limited number of user entry points, helps new users learn quickly, simplifies the product and helps cut support costs. The presence of documentation not only helps in tracking all phases of the application but brings in innovative ideas to improve the quality of the ERP software product.
2 | ERP CHANGE MANAGEMENT PLAN
Migrating employees to new systems, rules and procedures requires clarity and training, and you need a solid change management plan for that.
This change management plan would include:
- Analysis
- Role Assessment
- Communication plan
3 | DESIGN AND DEVELOPMENT
At this stage, the ERP software provider will implement all the business process requirements documented in System Documentation stage.
4 | DEPLOY THE SYSTEM
After finding the right ERP software for your company needs, designing and developing to specification, it’s time to launch the system. After installing the infrastructure, you need to configure the ERP system and optimize it for your business needs.
Depending on both the software and the vendor you select, the length of this process can vary greatly. You want a balance between attention to detail and time to implement.
Some ERP software are more robust and will require a longer implementation based on complexity alone. Some will be ready to go “out-of-the-box”. A good vendor will perform their due diligence and spend time reviewing your requirements prior to implementation to make the process smoother and shorter. Others might skip this step and get lost in the details when implementation time comes, dragging out the process; or worse, leave you hanging with a system that doesn’t meet your needs.
Make sure you discuss this timeline and process with your vendor ahead of time so there are no surprises.
5 | DATA MIGRATION
Data migration is an important step for successful ERP implementation because, if done properly, it will help you effectively streamline your operations and run smoothly. Before migrating all of your data into your new ERP system, you should filter out everything that you find unnecessary or incorrect, so the new system is clean and accurate.
The goal is to move clean data that has been identified, scrubbed and mapped to the corresponding location in the new system. An example is importing inventory updated stock from MS Excel to new system so that you can achieve efficiency and data integrity.
6 | TRAIN YOUR EMPLOYEES
After the ERP system has been implemented, you need to train your employees (end-users and administrators) so they are able to use the new system efficiently and effectively. You should hire a team of experts to provide the necessary on-site ERP employee training and help all your employees fully understand and become proficient with the software. Your IT team should definitely be provided with more extensive training so that they are able to handle any technical issues that may occur in the future.
7 | TEST THE SYSTEM
After you configure your chosen ERP system, it’s necessary to move into a testing phase so that you can ensure that everything is working properly. Testing is a crucial part of the ERP implementation process because it will give you a clear insight into the performance of the system and help you make a smooth transition. You should never go live before performing proper system and user acceptance testing.
This is also a chance to troubleshoot any problems or establish remedies for areas that aren’t up to standard or running as they should.
8 | GO LIVE WITH YOUR NEW ERP SYSTEM
It’s the big moment! Systems have been developed, most data has been transferred, product training and onboarding activities have occurred and testing is complete, it’s time to go live and start coordinating all your activities and resources, effectively streamlining your business operations. You should test the system once again, to ensure that it is working optimally.
Don’t make the mistake of thinking that all work on your ERP implementation is done. For the ERP implementation process to be truly successful, you need to continuously work on it. You can’t just implement the software, train your employees, and never think of it again.
BONUS STEP: SUPPORT AND EVALUATION
To evaluate the system’s efficiency, work closely with your ERP system vendor to look at clients’ and employees’ adoption habits; to determine the actual return on investment. The goal is to ensure high user acceptance.
You need to make sure that the system is properly maintained, upgraded when needed, and that any kind of glitch or problem is dealt with quickly and effectively so that your ERP system can achieve peak performance levels.
A SUITABLE ERP SYSTEM CAN BE VERY REWARDING
Implementing an ERP solution into your organization can be one of the best decisions you make. Although it takes a substantial amount of time and thorough planning, your efforts will pay off in the long term if you make the transition to the new system as smooth as possible.
So, let ExcellentBridge be your guide – if you follow the steps listed here, not only will you improve decision-making, productivity, efficiency, collaboration and communication within your company, effectively coordinating your business activities and enhancing the performance of your workforce, you’ll also significantly improve your customer service and provide your business with plenty of opportunities for growth.