Implementing ERP into Your Business Process

Deciding to implement an ERP is a big step, and it requires careful planning in order to be a success. Not only do you need to devote sufficient resources to the process, but you should also develop a concrete plan. If you know the direction the project should go in, its scope, and its structure, you’ll have better chances of success later on.

 

Since many companies aren’t able to pull multiple team members from their normal responsibilities to work on an ERP integration, they may end up outsourcing the project. For example, NetSuite integration partners like Entartes bring both experience and resources to an ERP implementation, working with all different types of companies to help them take the next step forward. Whether or not you hire a third party to help your company, though, it’s still important to know about the ERP implementation stages discussed below.

 

Stage 1: Discovery and Planning

 

Even if you’re sure that implementing an ERP is the way to go, you’ll still have your work cut out for you as you research all the different options. Once you’ve selected the system that would be the best fit for your company, it’s time to set up your project team and establish all the details for system requirements.

 

The roles of the project team will be comprehensive; they’ll include daily project management, making design and product decisions, effectively allocating adequate resources, and establishing target dates and project plans.

 

Members of the typical ERP implementation team include representatives from any department that will be using the system, the project manager, and the executive sponsor. Getting senior management involved is also crucial, since this is the best way to ensure adequate resources for every stage of the project.

 

Stage 2: Design

 

In order for it to work, the ERP’s design has to integrate with existing workflows and detailed requirements established by the project team. This usually includes designing new business processes and workflows that use the full potential of the ERP, since current workflows may become obsolete. 

 

Users should be asked to give input at this stage, since they’ll be able to inform the implementation team about day-to-day business processes. This also gives them a stake in the outcome of the integration process, meaning they’re more likely to welcome the changes it brings once the implementation process is complete.

 

For many companies, a gap analysis will be necessary. This can identify any unique quirks or intricacies, so that the ERP (or workflows) can be appropriately customized. This is one situation in which the expertise of an implementation partner is especially valuable, since they’ll know exactly how to customize the ERP.

 

Stage 3: Development

 

Once the design requirements are established, the software can be configured and customized to fit redesigned processes. This step may also involve developing integration plans with other parts of the business that won’t necessarily be using the ERP. For ERP systems that will be housed on-premises, the appropriate facilities will have to be set up.

 

As the software is being developed, training materials should be developed as well. Data migration planning is also important at this stage, as it’s a complicated task. The job will include the extraction, transformation, and loading of data from several different systems. They may have different formats from each other, and even contain duplicated or outdated information. To protect data integrity, a blanket migration should be avoided; instead, the team should establish which data should end up being migrated.

 

Stage 4: Testing

 

This stage can happen in tandem with the previous stage, as various features and modules become ready for testing. Issues can be identified one by one, adjustments can be made, and retests performed. The first stages of testing should focus on basic functions, well before the system’s full capabilities are tested. Once that point is reached, many potential problems should have been already ironed out. 

 

System tests should be performed by the project team, as well as select employees as they fulfill their daily tasks. As the project gets closer to deployment, end-user training should be rolled out.

 

Vendor support generally includes end-user training, but your own project team will probably be able to contribute training materials based on their observations in the development stage. This not only rounds out the training materials that end users receive, but it also focuses the training on what’s specifically relevant to your company.

 

Stage 5: Deployment

 

It’s a big deal to finally deploy an EPR, especially since it can take months to fully integrate. Even so, reasonable expectations are key – you should expect a few hiccups. There will be many moving parts, and probably some employees who need additional clarification. At this stage, one of the project team’s main purposes will be to answer any questions that arise as end users adjust to their new workflows.

 

In some cases, answering these questions will just be a matter of demonstrating a specific function to a first-time user; in other cases, the questions will help identify glitches that the project team or implementation partner can then troubleshoot immediately.

 

Another aspect of maintaining realistic expectations is that you shouldn’t expect skyrocketing productivity gains right away. Many (if not most) of your employees need time to adjust before that happens, so the immediate focus should be on continued training as needed, plus troubleshooting.

 

Stage 6: Support and Updates

 

The ERP implementation will need continued nurturing after deployment, both to keep users satisfied and to drive the company towards its goals. It may happen that additional configuration is needed at this stage, which is something the implementation team can take care of. Staff training will probably continue for a while, and clear lines of feedback should be established and maintained to monitor for issues.

 

 

The takeaway

 

Implementing an EPR takes a huge amount of planning and resources; this is the kind of process that can’t afford to cut corners, whether it’s in terms of budget, manpower, or anything else. With the right strategy and a solid project team, the results will speak for themselves.