ERP software implementations require thorough planning. Here are eight best practices for successfully ushering your ERP implementation to completion.
Implementing any new business software is a daunting task. And implementing new Enterprise Resource Planning (ERP) software can be particularly intimidating, since implementation will touch on almost every aspect of a business.
The good news is that implementing a new ERP can provide a relatively impactful Return on Investment (ROI). Recent surveys indicate the average ROI for ERP implementation is 52 percent, including a 30 percent cost savings in purchasing and inventory control areas.
The key to a successful ERP implementation is thorough planning. Its importance cannot be emphasized enough. In this article, we outline the typical ERP implementation process and discuss best practices for a successful ERP implementation and ongoing use.
Contents
ERP system implementation process
Why some ERP implementations fail
Eight ERP implementation best practices
An ERP system centralizes and integrates data and processes across an organization, from shop floor operations to accounting and inventory management. Using a centralized database and streamlined processes, an ERP system creates efficiencies through integrations that dynamically populate data and connect business processes.
An ERP implementation involves the planning, data migration, testing and deployment of new ERP software in an organization. Depending on the size of the company, it can be a relatively simple or complex endeavor that requires a well-though-out and communicated plan.
The implementation process begins after a business has chosen the ERP system that best fits its needs and budget. The final choice should factor in input from all business units and stakeholders that will use the system. As you move from the ERP selection phase toward implementation, harness the expertise of your selection team as a starting point for your ERP implementation planning.
Keep in mind that many steps in your implementation process will overlap. For instance, you may train one department while another is focused on migrating its data. Your processes and pace will depend on your business’ unique needs and the implementation strategy you choose.
Your new ERP system will touch on almost every aspect of your organization, so it makes sense to include representatives from all key areas to facilitate buy-in and proper planning. Your team should include representatives from senior management, accounting, operations, sales, inventory management, shop floor and any other key business area.
Once strategy has been determined, it’s time to map out the steps for implementation in each key business area. Team members should prepare detailed implementation strategies for their business units. Their plans will eventually be rolled into the master project plan. Plans should include:
System installation needs will depend on the type of ERP platform your business has chosen. The easiest and fastest delivery will be through a cloud-based system, like QT9 ERP. Cloud ERPs deliver initial software and updates via a secure internet connection. This means customers do not need to purchase new hardware or software, and they mostly adopt the processes built in to the system.
Alternatively, on-premise ERP systems require infrastructure configuration and physical installation of the system. That means that implementation of an on-premise solution may take a few weeks.
Since your data lays the groundwork for the successful use of all other ERP functions, it pays to devote extra resources to get data migration right. Work with your ERP supplier to determine the best plan for data migration, letting their experience guide your plan.
Before data migration begins, cleanse data of unnecessary and outdated information so that only pertinent data is transferred. This helps improve efficiency and ensure data integrity in the new system.
User adoption is a major factor in the success of new software. Offer employees training opportunities prior to system launch and check in with them on a regular basis after implementation to ensure they are comfortable working in the software.
Take advantage of training opportunities offered by your ERP software vendor. Most ERP vendors offer pre-implementation training as well as online resources available for employees to use at their convenience.
The testing phase involves utilizing your new ERP software in a simulated environment to ensure that it functions and uses data accurately. Be sure to check security, workflows, integrations and user acceptance.
This is the time all of your planning comes to fruition, when you begin using your ERP in a live environment. If all goes well, systems will function as planned. However, be sure your experts are on hand to troubleshoot any issues, and have contingency plans in place in the event there is a serious malfunction.
As users become more familiar with the ERP system, their feedback will be key to making improvements to processes and work flows. Be sure to keep the lines of communication open and look for ways to keep creating efficiencies for your organization and staff.
A 2024 review of ERP user experiences indicated that the top two ERP implementation challenges were inadequate testing and deficient process re-engineering. Other common reasons for ERP implementation failures included insufficient planning, poor data quality, lack of user training and resistance to change.
Testing your new ERP’s configurations and processes in a trial-run environment enables you to mitigate issues when you go live. Be sure to test your ERP applications thoroughly, including integrations with other applications, as well as hardware and network infrastructure. Pay close attention to the data that is being pulled and ensure that it is populating as expected.
If you’re implementing an out-of-the-box ERP system, processes will be pre-engineered for you, although typically at least some elements are configurable to your needs. This can save time, money and headaches, since much of the work is already complete.
With a custom ERP solution, vendors work with your internal team to create new processes. Be sure to test these new processes thoroughly to ensure they are engineered correctly before go live. Keep in mind that custom ERP systems are generally more expensive and take longer to implement.
Poor planning can be the death of an ERP implementation, causing delays and budget overruns. Be sure that your implementation team understands goals and expectations. Communicate with users to gain buy-in and insight into day-to-day operations and how the new ERP system should support those operations.
The most common reason employees resist adoption of new software is lack of understanding. Be sure to communicate the total picture for your ERP implementation: business and process goals, efficiencies, future integrations.
Offer several training opportunities and support them through implementation so they feel comfortable using the software and sharing insight into additional ways the company can scale its use.
Planning a new ERP implementation involves a lot of moving parts. Outside of data migration and process mapping, there are employees to train, equipment to monitor and, perhaps most importantly, current operations to maintain. Below are some best practices to consider for your ERP implementation.
Be sure to secure buy-in from leadership to ensure the implementation has the necessary resources, funding and strategic direction.
Build a cross-functional team with representatives from IT, finance, operations and other key business areas. Designate a dedicated project manager to oversee progress.
Your implementation plan should be a detailed roadmap that includes budgets, timeline, milestones, responsibilities, training schedules and a communication plan.
Be sure to choose an ERP software provider that offers robust support for implementation and training. Vendor expertise is invaluable. Besides providing general implementation guidelines, they will often offer more detailed implementation planning consultation.
Hiring an implementation consultant may make sense for certain businesses, such as enterprises centralizing multiple systems from multiple locations. Make sure any consultant is familiar with how to use your chosen ERP software.
Likely some of your legacy data has become irrelevant and inaccurate. Clean and validate existing data before importing it into the new system. This will improve data accuracy in the new system and improve system performance.
Lack of training and communication has been the downfall of many new software implementations. Just like your project plan, take the time to plan how you will support employees through the change process. Be sure to communicate with them on a regular basis, providing demonstrations, software training and additional resources, if needed.
It may be tempting to skip steps in your implementation plan to meet project deadlines, but doing so is likely to create problems down the road. Instead, be sure to create a realistic implementation schedule. Small and midsize businesses typically implement an ERP system within three to nine months, while larger companies implement within six to 18 months.
Every organization must evaluate its current and projected operational requirements to determine what ERP platform is best suited to their needs. Outside of basic ERP software applications, such as accounting, manufacturing and sales, other significant features to look for in ERP software include:
ERP systems provide a single source of truth for all operations, giving employees and management real-time information about key business processes. This comprehensive view enables management to make informed decisions faster. With advanced reporting and analytics, businesses can easily identify trends, predict potential challenges and make proactive adjustments to improve performance.
Software that is easy to use significantly improves user adoption, increasing productivity and allowing a wider range of users to access its functionality without extensive training. A good ERP system lets you accomplish tasks with fewer layers, providing clear guidance and prompts with an intuitive interface.
The support provided by an ERP software provider is integral to the continued success of its use. Whether its in-person or internet-based consultations, a library of templates and documentation or how-to videos, look for the kind of ERP software provider that offers support that fits your needs. Any provider worthy of your business will offer support for its product throughout its use, from implementation to everyday use.
Today’s cloud-based ERP platforms make software implementation and updates easier than ever. It also saves your company from having to employ personnel to maintain the system. Out-of-the-box ERP systems that offer pre-built modules and features are ready to deploy as soon as the user is ready. Look for out-of-the-box solutions that match your needs from the start, as customization is usually limited.
There are many pricing models used by ERP software providers. Make sure your business’ needs are covered by the core applications provided, and be aware of which applications are add-ons and at what cost. An out-of-the-box solution can provide robust applications while saving money for your organization.
QT9 ERP is a comprehensive system that can work for any size company, in any industry. QT9 ERP improves efficiency and accuracy through integrated data and automated operations, all without breaking the bank.
QT9 ERP provides more than 17 modules as part of its standard offering, as well as easy access to data and analytics to help manufacturers make the best decisions for moving forward. With QT9 ERP you get:
QT9 ERP also offers electronic batch record (eBR) and device history record (DHR) applications to address the needs of life sciences companies. Our ERP system lets you configure processes to best meet your needs and is highly scalable, so you can implement at your own pace.
Reach out today for more information about QT9 ERP.
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