Explaining ERP Implementation Phases with Proven Tips to Avoid The Failure
Do you still manage your business manually? It must bother you and your employees to coordinate with each other. In this modern era, it's really tiresome to maintain too many paper files and documents.
If you want to accelerate the success wheel of your business faster then introduce a paperless smart business approach today!
An ERP system can automate your small-large enterprises connecting all the business processes end-to-end. Most importantly ERP reduces the usage of paper and makes you able to streamline the flow of information automatically.
However, you have to integrate all the ERP implementation phases in a disciplined way to ensure business growth at a rapid pace.
ERP implementation phases include installing the system, migrate all the business data to the new system, adopt with the change management, configure your users, optimize the processes, and training your users on the system.
Today we will discuss how to implement the different phases of ERP effectively minimizing the hassle of manual activities.
A Short Overview on Modern vs Old Days Business Management
Changing time demands new strategies. The structure and working process of today's business organizations are far different from the past. Where the business decisions of the 20th-century were company oriented, today's business decisions are more customer-oriented.
Also, modern business organizations believe in ongoing adaption with the changing technology and customer preference. It helps them to establish a boundaryless organization. Here people are allowed to collaborate with each other and share the data concurrently.
Therefore, companies now intend to integrate an automated system into their business. Hence, it can help them to influence team collaboration, customer engagement, increase profit and overall improve brand reputation.
Moreover, it assists you to command your business from anywhere in the globe.
As a result, today’s business strategies and plans are more data-driven while old ones are opinion driven. It speeds up the workflow of the modern companies, improves the communication method and imposes strong networking among all the parts of a business.
The Way ERP Software Influence Business Leaders
The concept of ERP originated in 1960 with the implementation of Materials Requirements Planning – or MRP. This early computing software helped companies to manage their inventories. Also, it managed raw material requirements for manufacturing, purchasing, and delivery.
Gradually, the capability of this program is upgraded and it started to collaborate with financial management and resource planning.
The biggest revolution comes in 1990. In that year the term ERP –Enterprise Resource Planning was first used by Gartner Group. It connected all the departments of an organization including finance, accounting, HR, customer engagement and project management through a centralized database.
Now, ERP solution is a powerful and advanced tool to optimize all the business processes. It helps the business owners to lead all the information from a common platform. It simplifies data tracking and making decisions more accurately.
ERP Implementation Phases Explained (6 Steps)
The success of an ERP system largely depends on its implementation. Generally, there are 6 phases that make up an ERP implementation effective: Research and Planning, Design, Development, Testing, Updating, and Learning.
Research and Planning
You should set up the roadmap before starting the journey. Before integrating an ERP system you must evaluate your client's requirements, existing systems, and essential tools accordingly. It helps to pick the appropriate methodology for implementation.
Moreover, you need to analyze the business processes completely before implementation. Also, you can form a team to manage all the issues and collaborate with the authorities. After that, divide the team members into small groups and allocate them to an individual area such as accounting, production, sales, and customers.
Then construct an effective project plan to lead the game plan successfully. Complete research and planning will assist a business to get the best ERP system minimizing the cost and money.
- Analyze the requirements
- Set a goal and find the scopes
- Form an implementation team
- Define the workflow and system functionality
- Instruct the vendor
Consult with your vendors to get the best opportunities and integrate the customize system that matches your business goal.
In this phase, the project team and implementation team will come together with an efficient structure to execute. They will be working on different system configurations based on the requirements. Also, allocate the resources and designate the user's role thoroughly.
Another important task of this phase is to define and document the working procedures for each user role. In addition, you can create an agenda with possible deadlines and target budget.
- Define the implementation structure
- Allocate the user role and responsibility
- Document the working procedure
- Create an agenda with deadlines and budget
Hence, an organized architecture will assist you to execute the implementation plan successfully.
This phase is a little bit complicated. In this phase, you have to prepare the system for going to live. You must be careful while importing the data to the new server. It would be better to remove all the unnecessary data before migration. It minimizes the chance of duplication. Just before going live, migrate all the transactional activities and data into the new ERP database.
Also, you can arrange introductory training for your employees to habituate them with the new system.
- Import data to the new server
- Prevent duplication and inconvenience
- Perform required customizations
- Consider the issues regarding third-party integration
- Arrange introductorily training
Furthermore, you should consider and identify the issues associated with system customization and third-party integration.
Now it is time to match the system with your expectations. Instruct the system users to check it from all the possible aspects and find out the bugs. It is the last stage before going live and the final implementation. So, carefully check the system considering all the functionalities and scenarios.
The development phase and testing phase can be conducted simultaneously for the fine-tuning. Therefore, you can configure the system based on user feedback and test outcomes.
- Scan the system and find out the gaps
- Get feedback from the users
- Fine-tuning the configuration
Thus, you need to ensure that the system comes out as per your plan and performs accordingly.
In this stage, all the associated members examine the system and set the green signal to go live. The implementation team members will train up the other members for using the new system. Again, they will identify and analyze all the data migration and adaption. Also, they will review the whole system and customization. In addition, they will verify all the data and ensure the accuracy before final integration.
Furthermore, in this phase, you have to make sure that all the departments of our business can collaborate perfectly through the new ERP system. Also, diminish all the confusion and issues that arise in the testing phase.
- Perform final system assessments
- Recheck all the data migration
- Review the whole system carefully
In addition, run the old system simultaneously with the new one until you grip all functionalities of the new ERP solution.
Learning and Updating
Well, you have successfully integrated the new system into your business. Now, you have to work for better performance and the sustainability of the system. In this stage, you need to account the business productivity, customer retention, company revenue, employee usability and so on. In this way, you can calculate the ultimate business revenue after implementing the new ERP system.
- Measure business productivity and revenue
- Ensure post-implementation activities
- Getting continuous updates from the users
- Upgrade the system with the relevant changes
However, with the time you should adopt the new technology and update your system according to the market demands.
6 Effective Tips to Avoid ERP Implementation Failure
Undoubtedly an Enterprise Resource Planning system (ERP) distributes all the resources appropriately across an organization. It brings immense benefits for a business and diminishes the coordination hassle completely.
However, the study says about 75 percent ERP project fails due to the lackings of proper guidance and efforts. Let check the valuable tips to minimize ERP Implementation Failure.
Choose the Right Solution
Requirements of every business differ based on its market size, business niche, competitors type, marketing strategy, and others. So, before selecting the appropriate solution for your business you have to analyze its properties first and then inspect the available products in the market.
It will help you to identify the best system that fits your business most. Also, the system must serve you and your associated members with immeasurable benefits. Hence, it connects all the parts of a business with a strong knot to accomplish the final goal smoothly.
Hiring the Right ERP Consultants
Well, you can hire one or more consultants who assist you to select and implement the right ERP system in an optimized way. They get involved from starting to the ending of an ERP integration. Thus, they are responsible for obtaining the best output from your investment.
Also, they take the responsibility to maximize your profit margin with the proper resource distribution. However, it cuts your pocket to employ a consultant for your business. But at the end of the day, it will make you beneficial by returning a good result. Nevertheless, ERP consultants prevent all kinds of wastage and influence you to take the right decision.
Train-up Your Employees
It's not an easy task to get your employees ready for the new system. But proper motivation, essential tools, and engaging events can train them up eventually. You can arrange training for your employees conducted by highly qualified trainers. They will influence them to adopt the new changes. Also, they will make the users capable to manage the different modules of an ERP system.
Make your team ready before going to live that they can provide all kinds of assistance to the clients. Moreover, they must learn how to collaborate with all the departments of a business. Proper training makes them able to handle the data and process them for further use.
Long Term Planning
In order to sustain long, you must be strategic. Your visionary power leads you to account for further challenges and risk factors. Therefore, you get prepared yourself to overcome all the possible obstacles.
Moreover, you need to invest a handsome amount for the ERP implementation phases in your organization. It will take your effort, time, money, and other assets. Therefore, you should ensure that it will be profitable for you and your company with the changing time and circumstances. Otherwise, there is a high chance of collapse due to improper customization and wrong decision. So, plan your roadmap considering the elements that can affect your business methodology.
Implementation of a new system impacts all the sections of business thoroughly. But often companies forget to take care of the end-users who are largely affected by the new changes. As a result, businesses have a high possibility to face an immense loss in the future.
Change management is an organized procedure and a set of tools used to manage the people side of change.
In order to ensure a high ROI on your ERP implementation phases, you should develop a strong change management plan. It should consist of a sponsorship roadmap, coaching plan, and training plan.
Make Sure the ERP is Well Documented
It's very natural to face problems while implementing or using a new system. If you have all the documents regarding troubleshoot these issues, it will be helpful for you. Many ERP system developers provide well-organized documents, sometimes tutorial videos to assist you in any problem.
You should take all the related documents from your vendors while handover the system to you. It will be beneficial for you and your employees to conduct all the operations through the automated ERP system. And if you forget anything or feel any hurdles use the documents to solve it.
Proper implementation of an ERP system aligns all the activities of your business accordingly. Moreover, it will improve your business performance and ensure all the back office activities running smoothly.
In order to conduct a successful ERP Implementation, avoid the common mistakes that impact your business ROI. Execute all the ERP implementation phases carefully to get the highest business revenue. Furthermore, it will build a strong relationship bridge between you and your clients.
Nevertheless, ERP makes it as easy as pie to run a business. With this advanced technology now you can manage all your business activities at your fingertips.
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