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The Best Practices for Implementing ERP Software

ERP software planning and implementation aren’t just about adopting software; they’re about many motivated people working toward a single goal with adequate resources. How those people accept or reject a new system can determine your success in ERP software implementation.

More than the steps for ERP software implementation, there are secrets to look into. Be sure to create your ERP software implementation checklist as you discover the secrets on this page.

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5 Secrets of Successful ERP Software Implementation

1. Clearly Defined Scope, Purpose, and Process

For successful ERP implementation, companies ought to ask several questions, including but not limited to the following:

  • Are you implementing an ERP to automate processes?
  • Are you simply switching to a new ERP system to replace outdated technology? 
  • What is the ERP implementation process to undergo? 
  • Which non-system processes should be taken into account? 

All business software solutions are founded on processes, including ERP software. An ERP’s goal is to show a company’s value chain. Of course, leveraging best practices in ERP implementation is fantastic, but it will not be successful if current processes are not considered.

Your team that will work on your ERP implementation strategies must be familiar with the system’s operations. The purpose of the ERP module implementation must be clear to them as well as your current business processes.

All these could mean the difference between ERP implementation failures and a very successful project that reaps the advantage of ERP implementation.

Optimizing Processes for Implementation of ERP Software

Take a careful look at your company’s operations and eliminate any waste.

Create ERP implementation checklist templates as you investigate the primary information routes that your business faces, some of which are as follows:

  • Product Demand to Supply
  • Order to Cash Flow
  • Finance to Management
  • Procurement to Payment

With such information, your team can define needed resources and the types of ERP implementation, whether on-premise or cloud-based. They can also plan the ERP implementation methodology to undertake. At the same time, you get a better picture of how much you must invest in time and money.

With unclear purpose and processes, your team will make changes halfway through the company ERP software implementation. It will be like pulling the rug right under your feet. There have even been horror stories about ERP implementation failures, with customers spending thousands of hours creating an ERP software that didn’t work out ultimately.

2. Support and Involvement of Management and Employees 

ERP software implementation is typically difficult because the business must continue to operate during implementation. Therefore, support for your ERP should come not only from your executives but also from your employees.

Your ERP implementation team should comprise your company rockstars who understand your current procedures inside and out. They will work through the ERP implementation phases while continuing to run the company. Giving them decision-making authority would help them work effectively.

However, the end-users are just as important as the implementation team. 

People tend to resist change when they don’t appreciate its value. So, get people involved by helping them appreciate the system through training. With this involvement, they get a grasp of how the system could help or harm their performance. Either way, they can give feedback to aid in execs’ informed decisions.

3. Taking Project Management Seriously

ERP implementations are typically large undertakings that necessitate skilled project management. About 30 employees can easily be involved in an ERP deployment. But involvement is not enough. Teamwork is essential.

ERP initiatives fail for various reasons, including miscommunications, misaligned expectations, and a failure to recognize problems before they become major issues.

Appointing a rockstar to take the lead in the project is key to guiding the team through the ERP implementation roadmap.

This person can notice difficulties between departments and guarantee that all groups are moving at the same speed. He or she can harness each individual’s abilities, ensuring everyone works together.

In addition, a project management tool would help in reducing the risk of failure while providing everyone with a task-oriented, fact-based picture of the implementation in real-time.

4. Proper Budgeting of Time and Money

Software is about a third of the average cost of ERP implementation.

The average ERP implementation cost for mid-sized companies can take up a significant portion of their annual budget. Outside of implementation, there are also other costs to keep in mind like hardware and overall making the system work.

However, another cost of ERP implementation is human resources. It is perhaps the most often ignored or undervalued aspect of ERP deployment budgeting. The people behind the running of the ERP software are vital in making the system work.

There are also costs in training and learning the system. The system will be of no use if the end-user can’t even get into using it.

Married to financial costs is the cost of time. Implementing an ERP system could mean temporary disruption of your operation. It is possible to operate, but expect that there will be disruptions from time to time. For how long are you willing to experience this?

Don’t scrimp on budgeting time or money, but don’t overdo it as well. Remember that while the objective of deploying an ERP is to make your operation more efficient, it would be too much of a risk to allocate so much time and money to the system. Budget time and money accordingly.

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5. Finding an ERP Implementation Partner 

The ERP software implementation process, particularly for consumer brand organizations, involves a lot of moving components that affect every facet of the business. Outsourcing ERP implementation and working with a service provider who understands your sector would help.

This partner can help you leverage your ERP software to monitor and steer the success of your project.

Besides, your partner, on the whole, will know how to complete ERP projects. It is, after all, their fundamental competency.

However, for your ERP implementation to succeed, you and your partner must be as open and honest as possible with one another. That way, the project will operate much more smoothly.

Such an open relationship is critical if you want to promptly resolve risks and problems while also encouraging teamwork. The best projects are those in which you, as the client, and your partner, work together to achieve a common goal.