Implementing an ERP (Enterprise Resource Planning) system for the first time can be painful if it is not planned correctly. New systems require time and careful planning to achieve desired benefits. 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 that it changes the technology used and dramatically impacts your company culture.
However, taking this step can be highly rewarding if appropriately implemented. It can help you synchronize all of your information, streamline your business operations, and significantly improve communication and collaboration within your company.
An ERP system is excellent for reducing costs, and by improving collaboration, it can help you considerably boost productivity and efficiency, leading to high-quality customer service and enabling you to stay ahead of your competition.
You should utilize ERP software for many reasons, but how can you ensure you have implemented it successfully? Here are the essential steps that you need to take for a successful ERP implementation.
1. Identify Your Goals and Objectives
Before implementing any ERP solution, you must identify your objectives and precisely determine your needs. Given the numerous benefits of an ERP system, you might know what it can do for your business, but do you know exactly what goals it will help you achieve?
You need to consider your company’s goals and objectives and find ways an ERP system can help you achieve them. Analyzing your KPIs (Key Performance Indicators) would be best to effectively identify the problems that ERP software will help you solve. This will also give you insight into your future projections so that you can adapt your organization to the change.
2. Choose a Project Manager
Finding a capable project manager to ensure the implementation process goes smoothly would be best. A professional with the right expertise and experience will guide your employees through the process and not only make sure that they fully understand its importance and the impact it will have on your organization but also explain their roles and responsibilities.
I’d like you to consider an internal employee who is attentive to detail and knowledgeable about your existing business process. This individual will have excellent communication and management skills for the role of a project manager. Alternatively, you can hire someone with this appropriate skill set. Either way, you’ll save time and focus on your core competencies on the tasks needed for a successful ERP implementation.
3. Find the Right ERP Software for Your Needs
Finding the right ERP software for your needs is the most essential step that you need to take because not every ERP solution will bring you the same benefits. What worked perfectly for someone else may not be the correct solution for your business.
One-size-fits-all is not the way to go with an ERP implementation, so consider your business needs, industry, current system requirements, and future expectations.
To make the right decision, you should discuss all the possible questions with an expert ERP consultant.
4. Data Migration
Data migration is an essential step for successful ERP implementation because, if done correctly, it will help you effectively streamline your operations, and if done improperly, it could take a long time to fix. Before converting your data into your new ERP system, you should filter out everything you find unnecessary or incorrect so the new system is clean and accurate.
Your goal is to clean up your data and transfer only the most essential information so that you can achieve efficiency and data integrity.
5. Configure the System
It’s time to implement your chosen ERP solution after finding the right ERP software for your needs and conducting accurate data migration. Most systems today are cloud-centric, eliminating the need to install servers and load software and instead requiring only an activation process. Once activated, your cloud software will need some configuration and optimization before the ERP system is ready for production use.
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 is more robust and will require a more extended implementation based on complexity alone. Some will be ready to go “out-of-the-box.” A good vendor will perform their due diligence and review your requirements before implementation to make the process smooth and as short as possible. Others might skip this step and get lost in the details when implementation time comes, dragging out the process or leaving you hanging with a system that doesn’t meet your needs.
Please discuss this timeline and process with your vendor beforehand so there are no surprises.
6. 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 correctly. User testing is crucial to any ERP implementation process because it will give you a clear insight into the system’s performance and help you make a smooth transition. It is best to never go live before performing a proper system review and completing appropriate user acceptance testing.
7. Train Your Employees
After the ERP system has been implemented and tested, you need to train your employees to use the new system efficiently and effectively. Training is an essential component of achieving user adoption. Ensure you document the steps your users take during their daily, weekly, and monthly routines to ensure the training programs cover each of the vital areas. Unfamiliar software in untrained hands is a recipe for failure. With proper training and oversight, your employees will be ready on your first day of Go-Live, confident that they understand how the system will help them better manage their work environment.
8. Go Live with your New ERP System
After your employees have been thoroughly trained in using the new ERP system, 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 it works optimally.
Don’t make the mistake of thinking that all work on your ERP implementation is done. You need to continuously work on the ERP implementation process to be truly successful. You can’t just implement the software, train your employees, and never think of it again.
Bonus Step: Maintenance
Please always make sure that your users are continuously included in post-implementation reviews. End-users are the first to appreciate what can be enhanced, changed, or tweaked to keep their work efficiency high and reduce redundant tasks.
It Can Be Worth Every Penny
Implementing an ERP solution in your organization can be one of your best decisions. 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 this 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 growth opportunities.