Deciding to upgrade your existing ERP software or to implement a new ERP system is a major undertaking, but it can be successful if you follow best practices. Here are some of the most important best practices to keep in mind:
Develop a project management plan – ERP implementation processes should concentrate on project management as the key to success. Project management is all about comparing the progress made against the original plan and thereby updating the plan.
Build a strong project team – the implementation team’s role is to guide the project from beginning to end. As such, the ERP implementation team you put together should consist of people, drawn from across the organization, who will be most affected by the new technology: the users. The people who will gain the most from the transition will be the most motivated to make sure the project succeeds. During the implementation process, they will be anticipating the results that the new system will provide, and they’ll want to get the benefits of those results as quickly as possible.
Establish clear requirements and KPIs – to evaluate the success of your implementation, you’ll need to establish key performance indicators (KPIs). They must be clear, measurable, and impactful. Are you hoping to lower operating costs, improve productivity, reduce inventory levels, fix errors, centralize data in a single source of truth, or make faster decisions? If the answer is some of the above, all of the above, or all of the above plus additional KPIs, then outline these points for your project team and the organization. Then, you—and they—will be able to gauge the implementation’s success based on real metrics.
Collaborate and communicate – as mentioned in Step 1, communication is essential for the success of any ERP implementation project. You need to communicate with all stakeholders throughout the process, including employees, customers, and suppliers. This will help to ensure that everyone is on the same page and that the implementation process goes smoothly.
Be flexible – things don’t always go according to plan, so it’s important to be flexible during the ERP implementation process. Be prepared to make changes as needed to ensure that the project stays on track.
Choose an ERP system that is flexible and scalable – this will ensure that the system can meet the needs of your business as it grows and changes.
Monitor the performance of the ERP system after implementation – this will help you to identify any problems and make necessary adjustments.
ERP implementation FAQs
- How long does ERP implementation typically take? Most ERP implementations are completed, from planning to having a fully operational system, in six months to one year. Completion times can vary depending on the ERP solution and vendor.
- How much does ERP implementation cost? Varying factors play a role in the cost of an ERP solution. These factors include whether you will be hosting your ERP solution on-premises (which requires an upfront investment into hardware, software licensing fees, hardware/software maintenance, IT staff, storage, and utilities) or in the cloud (which doesn’t require hardware, software, storage, or IT investments); how the ERP vendor charges (per user or for the resources used); downtime and training fees (if they apply); and the potential purchasing of additional applications in the future.
- What kind of training and support should be provided to employees during ERP implementation? Complete training and support should be provided by the ERP vendor and/or ERP partner. Each person who will be using the system should receive hands-on training as well as online and partner support after go-live. Depending on the ERP solution you choose, training may or may not be included in the initial cost and is an important consideration before signing an ERP contract.
- How do I measure the ROI of ERP implementation? The ROI is the comparing of the total cost of ownership (TCO) to the direct and indirect benefits you expect to receive over a five-to-10-year period. Some ROI savings include increased revenue, reduced overall operating expenses, improved production efficiency, and better cash flow. When taken together, the cost and the ROI will provide you with a clear picture of the economic impact of the ERP solution you’re researching.
- What are the post-implementation maintenance and support requirements? Going live with your new ERP solution is a thrilling milestone, and you may assume that your ERP implementation journey is over—but it’s not. Ensuring that your ERP solution is operating optimally requires ongoing support, including reviewing the current setup, possibly adding additional features not required for the initial go-live, and accommodating changes to business processes once the system is being used. Additionally, your ERP software should receive improvements and enhancements on a regular basis. If you’ve opted for an on-premises ERP solution, your IT team will be responsible for the upgrades (as well as for maintenance and security requirements), but if you’re running on a cloud ERP solution, the ERP vendor will handle the upgrades and your security needs.
- How often should an ERP system be upgraded or updated? Most ERP systems have a life span of five-to-ten years, but this can vary depending on the ERP system you choose. If you select a system that rests on a modern platform that can be easily customized, seamlessly integrates with third-party applications, and receives regular enhancements based on ever-evolving requirements and customer feedback, then you can confidently rely on your system for years to come.
Conclusion
An ERP implementation is a time-intensive, expensive process. Before embarking on an ERP implementation journey, you must be prepared for the challenges that await but recognize that the many benefits the right ERP solution delivers, including increased efficiency, happier employees, and more satisfied customers, makes it all worth it. Now is the time to review the stages of ERP implementation, find the perfect ERP solution for you, and take the first step to ERP implementation success.
- An ERP solution connects businesses end-to-end, helping them automate manuals tasks, consolidate all inventory, product, manufacturing, distribution, and project-related information, and find success in the digital economy. To enjoy these benefits, businesses must complete the ERP implementation process.
- The ERP implementation process involves multiple steps, starting with choosing your deployment option to the go-live. The ERP vendor you choose should walk you through each step and continue supporting you after the ERP implementation is complete.
- Ultimately, you and your team will need to carefully research your ERP solution options, make an informed ERP decision, and fully commit to the ERP system implementation. And when you do these things, you’ll find that the benefits of undergoing an ERP implementation far outweigh the challenges.
“Most people told us it would take about nine months to go live from when you start the process. It was amazing. Within five months we were live. [Acumatica] has a great platform and a great system that helped us go so fast.” – Sendy Stern, Chief Technology Officer, Fabuwood