Overview of the ERP implementation process

ERP implementation involves different steps and stages, mostly consisting of:

Install ERP software
Configure Settings and Options
Transfer of financial data and transactions from the old system (also known as data migration)
Preparing staff (or "users") with specific roles, accessing the ERP system, and security settings.
ERP software training for end users.
Depending on the execution approach you choose and the complexity of your business operations, ERP implementation anywhere may take two to two years... Sometimes more.

In other words, the timeline for a financial services company that implements basic accounting modules like general ledger, accounts payable, and accounts receivable will be faster and less complex than a manufacturing business that also needs shop floor, production, inventory, purchasing, and order processing modules, and all the additional configuration, workflow processes, and data that come with them. .

Regardless of the timeline, choosing the right ERP partner, developing a well-documented project plan, and properly allocating resources will determine the effectiveness, efficiency, and success of your ERP implementation.

What are the steps to implement ERP?
The first step in ERP implementation is to mobilize the project team. On the client side, there is typically an implementing sponsor, owners of various business processes, and end users. On the ERP partner (or “technology provider”) side, there will be business analysts, technical consultants, and a project manager.

Project management is critical to communicating the progress of system implementation, managing issues quickly and effectively, and achieving set goals.

Because there is an intensive and ready team, it is time to plan the ERP implementation process, which will often include

Definition of implementation scope, project milestones, required allocations, process maps and expected results.
Analyze the work requirements, install the software in the "protection mode" environment, and configure the system to match the necessary workflow of the process.
Migrate and assign data in the new system and perform verification checks.
Testing the system in all sections and constantly testing and running it through the quotation cycle to cash.
Training end users in their specific career based on roles and permissions. The "train the trainer" approach is widely used, whereby selected users are trained on the system and then served as internal trainers.
Deployment of programs in the production environment, often referred to as "direct transition." This will require additional manpower to monitor the process and ensure a smooth transition.
Support after live and project review.
Comprehensive planning and rigorous testing will be the two main aspects of ERP implementation to ensure that the system moves from concept to living environment.

Implementation of ERP cloud
What is the best way to implement?
Two of the most common methods are the application of the Big Bang to ERP versus a gradual approach.

With the Big Bang of ERP, your system is fully operational and everyone in our company is transferred at the same time. In short, you take all units in all sections directly at once. This approach can shorten the ERP implementation timeline, but it can also cause further disruption to day-to-day business processes and increase pressure on staff.

Instead, a phased approach will see the ERP system implemented sequentially, often by unit or functional area. This implementation methodology, also known as “ground and scale,” will take longer as parts of the new ERP software are implemented gradually over a specified period. This method may help mitigate risks and anxiety for internal employees.

There are pros and cons to both ERP implementation methodologies. Your technology partner's team can help you develop the best implementation plan for your situation.

How long does it take to implement ERP?
There is no such thing as one size fits all when it comes to answering the question of how long does it take to implement an ERP system. One company may just need to upgrade its financials while another may be a manufacturer with thousands of SKUs, multiple warehouses, and products shipped around the world. Implementing a basic ERP system may take less than two months where a more complex system can span several years. However, the average mid-market ERP system implementation will take about four to six months.

It is good to remember that ERP implementation is usually not a straight path, but a windy one. Ideally, the software will meet all your functional needs right away. But more realistically, there is often third-party software integration or ERP customization that needs to happen in order to meet all of your specific business requirements. As such, these additional disadvantages.

It's also important to keep in mind that the software itself is only part of the equation in a successful ERP project. It's also important to choose to work with an experienced ERP implementation partner who understands your business, can minimize the impact of technical issues that will inevitably arise, and leverage their experience to keep the project within scope and on budget.

See also: What is ERP?

ERP implementation Go straight to work and beyond
Once all stages of ERP implementation are completed and the system goes live, you can take a well-deserved exhale. All hands will be on deck for the next several weeks as employees adjust to the new system and processes, but the hard work is behind in the rearview mirror and your new ERP system will soon start paying dividends.

Once the dust has settled, you will need to review and measure how the project achieved the goals that were initially set. The system should reduce manual processes, improve productivity, and bring greater visibility and insight across all business units and your entire operations.

Implementing a fully integrated ERP system is a company-wide process that has a significant impact on the organization. When all is said and done, your ERP software provider and partner should know your business just as well as you do. Going forward, their role will not only be to support and maintain the system, but also advise and recommend additional solutions that will help you further achieve your financial and growth goals.

Continuing to review and improve business processes after go-live and gradually incorporating additional features and functionality will help expand the investment in your ERP system. In short, an ERP implementation is only as good as the team behind it. Developing a solid plan, choosing the right implementation method, and communicating openly throughout the process will ultimately lead to a successful end to what is often a (very) difficult project.