Guidelines for Executing Enterprise Resource Planning (ERP)

Posted by Marbenz Antonio on November 20, 2023

Once your business has made the decision to transition to an enterprise resource planning (ERP) software system, the subsequent step involves the implementation of ERP. To reap the benefits of ERP adoption, it is crucial to deploy the system properly and efficiently. This task is typically undertaken by a team comprising a project manager and department managers.

The process can be intricate and may feel overwhelming, depending on the specific needs of your organization. However, successful implementation of the new software ideally results in increased productivity and cost savings, bringing substantial benefits to your business through the ERP system. The transition to an ERP system has the potential to streamline your business operations, offering advantages to both end-users and the entire organization.

Steps to Implement Enterprise Resource Planning

Here is a breakdown of a step-by-step ERP implementation plan. We will begin by discussing what organizations should do before selecting an ERP system, and then delve into best practices for ensuring successful implementation.

1. Discover and plan to implement Enterprise Resource Planning

Before commencing the ERP implementation process, an organization needs to evaluate the functionality of its existing systems. This marks the initial phase of a successful enterprise resource planning integration and is a prerequisite before selecting an ERP software.

During this initial step of the implementation methodology, the organization should conduct a comprehensive review of its current systems and processes to gain a thorough understanding of its operational landscape and identify potential challenges. Simultaneously, an ERP implementation project team should be established to facilitate decision-making. The assessment areas may encompass financial, manufacturing, inventory, sales, and more. This step is crucial for identifying gaps, current issues, such as process inefficiencies, and potential requirements for the ERP system.

Following the assessment of the organization’s current system, workflow, and daily functions, the next step involves selecting the appropriate ERP system that aligns with specific business requirements, including considerations such as budget forecasting and pricing. If the requirements have been clearly defined, the acquisition of ERP software can take place in this initial step. The nature of these requirements may vary depending on whether the organization opts for an on-premises or cloud-based ERP system.

The transition to a modern ERP system can be a straightforward process with a well-defined roadmap and project plan for ERP deployment. Engaging in a transparent and open conversation with employees ensures organizational buy-in and contributes to the success of the ERP implementation.

Here are some questions to consider as you define the scope of your organization’s needs:

  • What business functions will be automated by the ERP software?
  • What are the ERP system’s specific data requirements and is it compatible?
  • Which key performance indicators (KPIs) need to be tracked?
  • Is the software scalable and flexible enough to evolve with the organization’s needs?
  • What is the timeframe for implementation and deployment?

2. Create a design and prepare to implement Enterprise Resource Planning

Now that you have selected the ERP system for your business, the next crucial step is the design phase. This stage involves configuring the ERP software solution to align precisely with your organization’s specific needs.

The design phase necessitates effective change management to enhance workflows, potentially introducing new business processes that seamlessly integrate with the upcoming ERP system. It is essential to establish a dedicated team within the organization to oversee this design step and formulate a comprehensive plan.

Steps to configure the Enterprise Resource Planning system:

  • Create an organizational structure by clearly defining all essential aspects of your business, including the chart of accounts, cost centers, and business units.
  • Customize your ERP software to seamlessly align with the existing workflows within your organization. Configure the necessary modules you anticipate your organization will require, such as customer relationship management (CRM), human resources, and supply chain management.
  • Set the parameters for user roles and permissions to effectively manage access throughout the system, ensuring stringent data controls are implemented.
  • Integrate the ERP software with other existing systems within your organization, such as accounting software, inventory management, and e-commerce platforms, if applicable.

3. Migrate and development

After defining the design requirements, the development phase kicks off, involving the customization of the software to facilitate the redesign. While this phase, also known as preparation, can be a daunting task, executing it properly is crucial for the long-term functionality of your ERP system.

Having established a redesign, the next step is to clean and format the current system’s data to ensure compatibility with the new system. During this stage, the organization needs to assess and prepare all existing data into a format that aligns with the requirements of the new ERP software. Once loaded into the new system and formatted appropriately, the initial ERP test can be conducted. It’s essential to monitor and document key metrics of your business operations during this step, taking note of any disruptions.

Ways to plan and prepare your data for migration:

  • Conduct a comprehensive data audit of all existing legacy systems and applications to obtain a clear understanding before entering the data migration process.
  • Categorize the types of data that need to be migrated and identify any redundancy by thoroughly examining and cleaning the data for accuracy.
  • Specify the data transfer method you intend to use and conduct thorough testing to ensure it is the correct migration process.
  • Make a backup plan and a recovery plan in the event of errors or data loss during the implementation process.
  • Create a data governance policy and put protocols in place.

4. Test the ERP system

With all preemptive measures in place, it’s time to conduct system testing before going live. During this stage, ongoing development may still occur, and testing of individual ERP modules may reveal the need for fixes or adjustments. Simultaneously, team members should undergo user training, and key stakeholders must be actively involved in the testing process.

Testing the entire system is crucial to ensuring proper functionality and accurate data processing. This phase holds paramount importance as it guarantees that all system applications and processes are running seamlessly before the ERP software is officially launched.

Things to remember during the testing phase:

  • Keep a record of user acceptance criteria and document relevant information.
  • Test the system for functionality comprehensively, covering all aspects from start to finish, and validate the accuracy of all migrated data.
  • Verify user accessibility through reviews and feedback assessments.
  • Conduct essential tests before deploying the ERP software, including assessments of automation processes, workflows, and system security.
  • Ensure compatibility of the ERP system with other existing systems and applications.
  • Provide adequate training for all employees on the system; consider implementing the ERP software gradually before a company-wide rollout.

5. Deliver a successfully implemented ERP system

If all the aforementioned steps have been successfully executed, congratulations! Your organization is now prepared to launch its new ERP system. Assuming that all employees have undergone proper training on the software, it’s time to initiate the rollout of the new ERP solution.

The project team that initiated the implementation process should be on standby in case of employee confusion or potential issues. Be prepared for any issues that may arise and have contingency plans in place for serious malfunctions. While all ERP modules can be deployed concurrently, it’s also acceptable to implement them in stages. Some organizations may choose to prioritize specific modules and gradually add others, reflecting the unique nature of each organization.

Remember, no two organizations are alike, and the deployment of ERP software can vary significantly. Ensure that the ERP solution is accessible to all employees and confirm that automated processes are activated.

What to look for once implementation occurs:

  • Is the data accurate and functioning properly?
  • Do all users have real-time accessibility without issues?
  • Are security protocols in place and functioning effectively?
  • Is the workflow established and processed as intended?

6. Manage your ERP solution

Once the implementation is concluded, it is crucial to establish a protocol for ongoing maintenance of your ERP system. Regular maintenance checks and periodic software upgrades should be performed by your organization. Having a dedicated team or a professional in place to ensure the health and longevity of your ERP system is essential.

The selected ERP vendor should be accessible for any questions and provide ongoing maintenance or updates as needed. Best practices for this implementation process involve a well-managed team and robust communication between the organization, its employees, and key stakeholders to ensure the ERP solution operates effectively and efficiently.

Best practices for managing your new ERP system:

  • Listen to user and client feedback regularly.
  • For on-premises ERP systems, schedule periodic software updates, and occasionally hardware updates; for cloud-based ERP, leverage automatic updates.
  • Establish standard operating procedures (SOP) to swiftly address common issues.

Here at CourseMonster, we know how hard it may be to find the right time and funds for training. We provide effective training programs that enable you to select the training option that best meets the demands of your company.

For more information, please get in touch with one of our course advisers today or contact us at training@coursemonster.com

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