ERP implementation in any organization has become essential in the current market space. It is needed to stay in the competition.
Statistics of all past implementations derive only 25% of them are successful.
This post is for increasing the ERP implementation success rate.
Let us first define what is ERP implementation?
It is the process of making an organization to run business operations with ERP. That includes understanding needs, installing software, migrating data&processes and training people.
We are providing steps and checklists needed for each step for making it happen.
The following are the six steps involved in enterprise resource planning implementation.
- Requirement definition, selection, and installation.
- Process and data migration.
- Validate with real-life data.
- Training the end-users.
- Taking it to the live production.
Requirement definition, selection, and installation
Define clear expectations before selecting an ERP solution. Be flexible with your timelines.
- Build a team of good consultants. Consultants who can understand organizations’ needs and who can communicate with clarity.
- Understand and make note of the existing processes of the business. Find problems in the existing system. Learn about bottlenecks, inefficiencies, and things that can be made better.
- Make software requirement definition documentation. Let this include technical and functional requirements.
- Make a plan with timelines and resources needed.
- Identify key performance parameters and define your desired results.
- Decide which process needs to be manual and which process needs to be automated.
- Design flowcharts to show the business process between different departments.
- Build networking facilities, data gathering, and display screens hardware.
- Install the required software and customizations need for them.
Process and data migration
Organizations store their data in different formats and databases(DBMS). Sametime each team may be following its own processes. Standardizing and centralizing the data and the processes need migration of the existing.
- Define clearly if there is any change in the process and who all will be impacted by this change.
- Validate existing data for accuracy and consistency. Remove unwanted data.
- Establish mapping between old database tables and fields and migrate the data.
Validate with real-life data
It’s essential the system is completely tested before the going to production. Hence thorough testing of the system is needed.
- Test all use-cases, features, and reports with real-life data.
- Verify communication processes between different roles and departments of the organization.
Training the end-users
Inadequate training may hinder the adoption of the system. Training with proper feedback mechanism also helps in validating and optimizing the implementation.
- Develop a well-defined training program, let professional trainers guide end-users.
- Let there be a feedback communication mechanism between
- end-users and trainers
- trainer and implementation team
- End users and implementation team
Taking it to the live production
- Choose the approach for taking it to live
- Complete deployment
- Phase wise deployment
- Use the existing system and new deployment parallelly
- Ready for a possible change in deployment date. Make sure you have people who can handle adversities.
- In case of system downtime, have an alert system to let all users know about it.
- Verify the performance and accuracy of the system again after taking it to live.
- Expect process change during initial days and have IT people who can support it.
Maintainance after ERP implementation
- Support system issues and end-user issues.
- Keep on evaluating the key performance matrix. Optimize the process based on the evaluation.
Following the above steps will assure the success of your ERP implementation. It is not a one-time process, you will have to periodically follow the above process.
The good news is, the success rate of implementation is increasing in recent times. It is due to advancements in technology and increased expertise of ERP vendors.
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