Enterprise resource Planning software has gained a lot of traction over the past few years. 96% of companies in the midst of growth that are thriving in their fields depend on ERP system[ERP Software].
Why is that? ERP helps businesses integrate every aspect of their business and streamline workflows. It can also increase productivity, and offer an overview of their work.
It is important to note that 50 percent of ERP implementations do not succeed the first time. In addition, the majority of ERP implementations cost between three and four times the amount initially planned.
The great thing is that you can reduce the risk of ERP implementation failures by following the right processes and steps. This is what we’ll talk about this morning. We’ll start by looking at what is the ERP procedure for implementation is.
What is ERP implementation?
This ERP implementation process involves connecting all of your functions, moving your data from the traditional systems to ERP (both transactions and financial) as well as improving your processes.
It is important to mention that ERP implementation can be complicated and could take months to finish. However, ERP will be crucial over the long term. Here are some stats that show that it is.
Automates and speeds the daily tasks, which results in a reduction of administration costs by 23% and operating costs by 26 percentage.
The streamlining of every process improves customer experience by as much as 68 percent.
Reduces the time to cycle by 35 percent, and inventory levels decrease by 38%..
ERP can boost productivity by 20 percent to 30 percent..
In all 95 percent of companies claimed they believe that using the ERP system has improved the overall efficiency of their business.
Knowing the Process of Implementing
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An ERP implementation lifecycle comprises various phases, beginning with planning and discovery, and ending with customizing and deploying.
Typically, there are four ERP stages of implementation:
- Discovery and Planning
- Design and Development
- Customization
- Data Migration
1. Discovery and Planning
ERP implementation plans involve identifying the best ERP solution, establishing the project team, establishing an agenda, and planning your budget.
Locating an ERP solution is simple. All you need to do is look through the carefully curated list of the top ERP solutions from SoftwareSuggest. Make sure to pick one that is compatible with the needs of your company and its long-term objectives.
- The project manager will be accountable for making sure that everything is running smoothly.
- Analyst for applications: to ensure effective data cleansing and migration.
- Developer of applications: to personalize the according to your specifications.
- Qualitative analyst: study the performance of the system and suggest improvements.
As they will form a major element in the ERP implementation You will require additional people to work on various aspects.
For instance, you’ll require:
- Accounting head for general ledger, account assets, cash, and account management
- Engineers in the management of production, document management designs, and scheduling
- Staff on the floor during the management of documents as well as inventory management and the management of warehouses
- Sales manager during planning, business analytics and CRM functions
In order to set your goals, you’ll be required to pinpoint the issues that you face, such as process efficiency, you’d like to address through ERP. Also, you should think about your company’s goals to extend the ERP time to implementation.
The planning phase will include anticipated ERP costs for implementation. According to the most recent study by SelectHub 45 percent of ERP projects are over budget. Additionally, on average, ERP implementation can take 30 percent longer than anticipated.
We recommend that you have an emergency plan (time and cash) in place to prepare for ERP implementation to ensure that it does not impact your day-to-day routine.
2-Design
Once you’ve defined your workflows currently and the problems you wish to address with , you’re now able to design a comprehensive plan. This is among the most critical stages of implementation, therefore you must involve all in your business.
As stated in the previous section, you must bring in people from different departments since they have the deepest understanding of present business procedures.
In addition, if you include all participants in the design phase the participants are more likely accept the system and make the most of it.
Furthermore, you must concentrate on identifying the weaknesses in your current process and identifying solutions. This will allow you to create a tool that aligns with your objectives and offers the most effective business management solution according to your current business practices.
3. Customization and Development
After you’ve verified the requirements for design After that, you are able to begin the process of development. This will involve setting up and customizing this software in order to satisfy your company’s needs.
The development process can differ according to whether you’re purchasing cloud-based ERP or an on-premise solution. For example, ERP on-premise solutions are installed locally on the hardware of your business and servers, while the cloud is stored on the vendor’s servers.
Cloud-based ERP system on the contrary, provides greater flexibility (supporting remote work) and provides real-time updates regarding what’s going on in the business. You can also utilize your smartphone to monitor your business processes from anywhere.
However, this is the ERP implementation phase, in which the developers configure the system to meet functional needs, process flow, and wireframes.
While they’re doing it, they’ll need to record the entire procedure. This will ensure that future changes to the can be implemented in complete understanding of the process of development to avoid difficulties and failures.
They’ll also need to develop training materials that aid employees who are not tech-savvy in understanding and utilize the system efficiently.
4 Data Migration
Next step will be to move information to an ERP system. The development team will design the process for migration of data from older systems to this new ERP software.
However, it could be very complicated as different systems can store information in various formats.
One of the most difficult obstacles for moving data is that a lot of departments have their own versions of data about the same clients or products. Furthermore, the growing regulatory requirements for specific industries and regions affect the way businesses manage and store information. So, when you transfer your data to an you must to adhere to all laws to avoid any legal problems.
To ensure the success of your migration it is essential to establish clear guidelines for handling insufficient or non-existent data.
You’ll have to assist the team that is working on data migration
- Verification and cleansing of data
- Setup of databases
- mapping legacy data to new database fields
- Transfer of data from the old system
- Testing and validation of the legacy data
- Test and verification of any new data inputs
Follow these ERP best practices for migration to improve the odds of the success.
- Begin early and allocate the resources to ensure that data transfer does not become a bottleneck.
- Before beginning the migration process examine your data, eliminate any redundant ones, and then think about the ways they can be used to inform decision-making throughout the entire organization.
- Delegate data governance responsibility for following regulations that may impact your company.
Create an infographic based on these points under the heading “Data Migration within the ERP Integration Process”