How to get started with the implementation of ERP?
To create something exceptional, your mindset must be relentlessly focused on the smallest detail – Giorgia Armani
If you are living in the era of the 21st century, IT is going to play key role in organization’s success. ERP or expanded as Enterprise Resource Planning is one of such software that enables a business enterprise to manage their routine functions in a completely integrated way. All the sectors or areas of business have collaborated on a single common platform available for access to every stakeholder. The basic perquisites of ERP are its simplification and storage of data into a single database and then systematically presenting for the use of efficient decision making.
But it is very essential to understand how to do ERP system implementation in your business in a successful manner. For that you must follow certain steps that can guide you towards the successful ERP implementation.
ERP Implementation Step 1 : Why do you need it?
Setting goals is the first step in turning the invisible into the visible – Tony Robbins
The very first step in the implementation of ERP is to identify that why you need ERP system in your business. The purpose of having such software will let you set the appropriate goals and objectives for your business. Increasing work efficiency, improvement in productivity, data security and controlling cost is some of the purpose that gives rise to the need for ERP.
ERP Implementation Step 2 : Assess the scope
Be sure you are right, then go ahead – Davy Crocket
The next step is the evaluation of the scope of ERP Implementation. Every business has different requirements and ways of running things. Different ERP solutions are optimized for various functionalities. It is advisable to first evaluate the ERP based on their standard feature list and then find the right fit to your business. Knowing the exact scope of problem will allow you to choose the ERP which can be implemented with minimum customizations, which can eventually reduce the project cost and increase the ROI of ERP Implementation project.
ERP Implementation Step 3 : Transfer of Data
In God we trust, All others must bring data – W. Edwards Demming
The next big step in the implementation is the migration of data to ERP from multiple systems used before implementation. Transfer of data provides a smooth transition for future purposes. This step is slightly a complex one, as proper methodology has to be defined for which data can be migrated keeping in mind the new system architecture. Close coordination and involvement is required between different parties. Generally, the parties involved are:
Data owners or functional team: For defining the critical data, which needs to be migrated to new system
Data migration team: For running pre-checks, sensitization of data and importing it to new ERP software.
Developer team: When data structure of old and new system widely differs, they are required to restructure database.
Project Management: Coordinating between the teams is most important for data import step success
ERP Implementation Step 4 : Training and Change Management
If you change the way you look at things, the things change the way you look at – Wayne Dyer
Once you have selected your desired ERP solutions you need to bring changes to your present set of employees by training them to adapt to new ways of working. Choosing an ERP software solution is not enough if the workforce is not aware on how to use the ERP software. Thus it is essential to train the manpower in the organization to get rid of old and traditional methods of doing business operations. Change management is really a task where management needs to get involved. Some users may need to be forced to use ERP Software while others may need proper hand holding for getting used to new ERP Software. We at FinByz believe training ensures the success of implementation.
ERP Implementation Step 5 : Customization of ERP
Life’s an achievement of thoughts, Be sure in your customization – Ja Haan
Customization of ERP means adapting the service to your own needs. As every business operates on different sets of rules, one needs to opt for the options that they have used for or may be of any benefit in the future as everything comes with a cost. Industry specific ERP are the commonly used ones these days. Rather than changing your business process according to the software, the company may choose to customize the software as per your methods. Finbyz provides ERP software customization service to ensure smooth transition to ERP Software.
ERP Implementation Step 6 : Testing the system
Everything you don’t know is something that you can learn
Instead of rushing into the implementation and then facing the errors later, it is always beneficial to test the software first. Acceptance at all ends in the organization is an important factor. ERP Software must pass through various tests and should be run in different situations to find out any kind of bugs or errors in it. Specifically, customizations done as per company’s requirement have potential of creating unexpected errors on other well tested functionalities of ERP. As this solution is helpful in a longer run, every small detail should be checked before it is used by all employees of the business. This step helps in finding out other problems that organization may face in the future while using ERP, and eliminating it before it goes live.
ERP Implementation Step 7 : It’s ready to go live!
The secret of getting ahead is getting started!
After the ERP software has successfully passed through the above stages the only step left in the implementation is going live with all the transactions processed through ERP. By now each department should have hands on experience of using ERP functionalities relevant to them. Now it’s time to do opening entries of accounts and inventory. Post this date all the accounting and inventory related transactions must pass through ERP system. Management should enforce the utilization of systems by continuous monitoring of key reports of accounts and inventory
ERP Implementation Step 8 : Feedback and Support
Feedback is the breakfast of champions” – Ken Blanchard
Feedback is the most efficient form of communication in the organizations. After the implementation of ERP is successful, getting routine feedback makes it even easier for the business. It is important to align the real outcome with the goals that were set in the beginning of the implementation process. As ultimately ERP is a technology, so it needs the updates and upgrades. While upgrades bring more features but with that there also some issues or glitches from time to time. Business should have a strong ERP implementer team to oversee these upgrades and issues for efficiently.
In a world of diverse data and different structures of organization, ERP becomes a necessary element. So it should be implemented carefully by keeping in mind all the possible expectations and needs of your business. A clear idea on what you desire to achieve from this ERP Implementation will help you generate positive ROI faster. Proper implementation will lead to a successful achievement of business goals and vision.
Efficiency is doing better, what is already being done
MD, Finbyz Tech Pvt Ltd