6 key stages of ERP implementation plan

Implementation phases of ERP
ERP implementation can be a complex task affecting many parts of the business. Any major initiative, a carefully designed implementation plan is critical. Dividing implementation into stages, each with clear objectives, can maximize your success.

By contrast, diving into ERP implementation without clearly defining the direction, scope and structure of the project increases the likelihood of facing significant problems later.

What is ERP implementation?
ERP integrates many functions across the business, such as financial management, human resources, sales and manufacturing, to provide benefits such as increased productivity and efficiency. ERP implementation describes ERP planning, configuration and deployment. The process usually lasts for a few months - and it's complicated, because ERP supports and automates many different functions.

To ensure successful implementation, the organization needs to carefully define its requirements, determine how to redesign processes to take advantage of the system, and configure an ERP system to support these processes and accurately test them before they are deployed to users. Successful navigation of all these steps according to the schedule requires careful planning and a structured approach to phased implementation.

What are the stages of ERP implementation plan?
Implementation phases of ERP
Flowchart for the six phases of ERP implementation
ERP implementation plan can be divided into six phases, each with specific objectives. Each business is unique, so stages may vary somewhat depending on the company, and may also overlap. The six-part ERP implementation phase life cycle includes exploration , planning, design, development, testing, updates and support.

• Exploration and Planning
  What is the first phase of ERP implementation? This includes research, selection of system, establishment of project team and identification of detailed system requirements.

The project team will deal with a wide range of implementation roles, including the development of the project plan and target dates, ensuring adequate resource allocation, product decision-making and design, and day-to-day project management.

The ERP project team typically includes an executive sponsor, project manager and representatives of the sections that will use the system. participant senior management is critical to ensuring the project has the resources it needs and to providing the support needed to implement change across the organization. The team may also appoint an external consultant or ERP implementation partner to provide expertise in system design and configuration. It should also include any in-house professionals involved in the implementation of the system, such as an IT representative and a report writer who will develop custom reports for users across the organization.

One of the team's early objectives will be to develop a detailed understanding of current issues, including the inefficiency of the process and the requirements of the ERP system. If the organization had previously developed an enterprise resource planning (ERP) business case, it might have already identified large-scale implementation business issues and objectives, which might involve faster financial closure, an improved view of operations or preparation for the IPO. They can be used to guide a more detailed analysis, including documenting current workflows, and to focus on system development.

The team may choose and acquire an ERP system during this phase, as the organization develops a clear idea of its requirements. One of the key decisions is to use an ERP system that works locally or in the cloud. For the local system, you can buy hardware and software and install them in your organization's data center. In contrast, ERP is generally provided as a subscription service accessed online, so it can be faster to implement and require less in-house IT skills.

• Design
  The design phase of detailed requirements and understanding of current workflows is developing a detailed design for the new ERP system. This includes designing new and more efficient workflows and other business processes that benefit from the system. It is important to engage users at the design stage, since they have a very close understanding of current business processes. Their involvement in the design also helps ensure that they welcome and take full advantage of the new system.

The gap analysis can be used to identify the complexities of the process and unique quirks that may require the allocation of ERP, workflow or process changes to align closely with the ERP system itself. The team can present gaps to its implementing partner or supplier and ask them to identify them.

• Development
  Armed with clear design requirements, the development phase can begin. This includes software configuration and customization to support redesigned processes. It may also involve developing integration with any of the organization's other existing business applications that will not be replaced with ERP. If you use the ERP system locally, the enterprise will need to install the necessary hardware and software.

at the same time ,software development, the team should develop training materials to help users adapt to the new system. It also needs to start planning data migration, which can be complex because it often involves extracting, converting and uploading data from multiple systems, each of which may use different formats and may contain duplicate or inconsistent information. The project team should determine which data will be carried over at this stage, and avoid comprehensive migration of all historical data, many of which are likely to be irrelevant. (See more about data migration below.)

• Testing
  Testing and development may occur simultaneously. For example, the project team may test specific modules and features, develop fixes or modifications based on the results, and retest. Or you may test one ERP module while another one is still in development. Initial testing of the programme's core functions must be followed by an exacting test of the full potential of the system, including allowing some staff to test the system for all their daily activities. This phase should also include data testing that has been carried over and includes preliminary training for the end user.

Most vendors can provide pre-deployment and after-deployment tools to start user training. But in addition to vendor support, the organization must make good use of training materials created in the development phase. There is real value in resources that specifically meet the day-to-day responsibilities of end users.

• Deployment
  That's what you've been striving to achieve: the day the system starts running. Be prepared for potential problems, as there may be a lot of moving parts and perhaps some confused staff, despite your best efforts to prepare them for change. The project team should be readily available to answer questions, help users understand the system and try to fix any issues. Your implementing partner should be able to help resolve if necessary. It can take time for users to adapt to the system and achieve expected productivity gains.

Some data can be transfered before publication, while other information - such as current transactions - must be migrated immediately before publication.

Some organizations aim to deploy all ERP modules simultaneously, while others first focus on specific high-priority modules or processes and later add others in phases. To minimize risk, some organizations also continue to operate legacy systems in parallel with the implementation of new ERP for some time, although this can add to the total cost of the project and reduce user productivity.

• Support and Updates
  Taking care of ERP implementation after deployment helps keep users happy and ensure business achieves the desired benefits. The project team may remain responsible for the ERP system during this phase, but its focus will shift to listening to user feedback and modifying the system accordingly. Some additional development and configuration may be needed when adding new features to the system. New staff will also need training on the system.

If you have an ERP system locally, you will need to install periodic software updates and you may also need to upgrade devices over time. If you use a cloud-based ERP system, the vendor may update the software automatically.