Five steps for a successful ERP implementation

We already made you familiar with the main benefits of implementing an ERP software. Few of the numerous advantages are: better productivity and efficiency, lower costs, improved task management, better planning and realistic forecasting, etc.

ERP systems link and define a wide range of business processes and enable the flow of data between them. It has become an integral part of business though in the very beginning it was considered to be a mere business management software program. And it is not only smoothing the business but boosting its overall growth.

However, a company can take advantage of all the benefits that an ERP system could bring to a business, only if the implementation is correct.
Let’s put it straight – ERP failures are quite common and for the project to work and for optimal utilization, one needs to do a lot of planning. And of course, have in mind specific steps that should be followed during an ERP implementation.

Set the objectives

In the first place, before getting to the implementation stage, you need to have your goals and budgets mapped out. Otherwise, it would not be possible to select the right ERP system. You should not ask yourself if ERP should be implemented, but what should it be implemented for. And it is so, because the ERP provides a solution to a large number of issues, which are faced by companies. It is of high importance to identify the problem or the aim of resorting to and ERP solution. The objectives can vary from having financial control and transparency of operations to supporting organic expansion or common processes.

Define the budget and evaluate the options

According to statistics about 60% of ERP implementations take longer than expected and more than 70% of the ERP projects exceed the budget. So, it is essential that an ERP demand list is created in accordance with the budget and the core necessities of the company.
Apart from money, the management of a company has to invest time in evaluating the options for an ERP solution.

Data migration and system integrations

After the ERP solution is identified, the next big and fundamental step is data migration. This provides optimal utilization of the software and a smooth transition. Entire data shifting can be a real burden for the software, so it is important to identify which data are necessary for this smooth transition to the new system. Actions that should be done are: data cleansing, database setup, mapping legacy data to the new database fields, data transfer, testing and verification.

Technology and Knowledge

Training is an important prerequisite for optimal software utilization. Ill-trained personnel, responsible for operating the data, is one of the reasons that in many cases the ERP system fails to deliver significant business benefits. Therefore, the transfer of knowledge and the training of employees are responsible for the project’s overall success.

Testing and Go-Live Plan

The testing phase helps in eliminating most of the issues and is crucial for minimizing the risk later on. Apart from system testing the go-live stage of your project includes: staff scheduling, identifying metrics for evaluation, network speed and reliability checks, data backup processes. We should not forget to mention establishing a communication strategy – communication with your team and the wider workforce is a key factor for success. It has to be clear who is doing what and when it is expected to be done.

Last but not least, an additional step after implementing the ERP solution, is evaluation and on-going support. The ERP solution is not a one-time event but a process, so observance, support and keeping tabs on are necessary in order to avoid aberrations.

As for evaluation, to have an idea if the implementation has been eventually successful, you need to make sure that you have managed to keep the project near in-budget. Some of the additional metrics for success include: return on your investment, decrease in data errors, increase in productivity levels and client satisfaction. If over the time most of these do show positive results, then you can give yourself a high five that you have chosen the right ERP solution and have successfully implemented it.