ERP Software Implementation
Fast ERP software implementation is a term applied to integrated software systems used to manage the internal and external resources of an organization. These include the physical assets, financial resources, materials and human resources
What are the stages of ERP software implementation
ERP software implementation Following Steps include it.
- Discovery – Consists of processes that help define the need, vision, scope of the project, and obtain commitment from the customer to continue.
- Plan & Monitor – Consists of processes that involve developing a strategy to complete the work, as well as measure the progress and take corrective action as required. This occurs throughout the entire process.
- Analyze – This stage is a more detailed level of discovery and consists of processes that involve gathering detailed requirements and analyzing the client’s business needs.
- Build – Involve processes that carry out the tasks identified in the strategy.
- Stabilize – Consists of a set of processes to ensure a solution meets the client’s requirements and is ready for full deployment to a live production environment. This also includes a client’s readiness to use the solution.
- Deploy – Processes that will deploy the solution to a production environment.
- Post Go Live – Processes that are in place to support the client once they are live on the solution, which lead to project closure.
5 Steps To Successful in ERP Implementation
1. STRATEGIC PLANNING
• Assign a project team
• Examine current business processes and information flow.
• Set objectives.
• Develop a project plan.
Assign a project team with employees from sales,customer service, accounting, purchasing, operations and senior management. Each team member should be
committed to the success of the project and account able for specific tasks, i.e. developing a timeline, finalizing objectives, formulating a training plan.
- Examine current business processes
Have the team perform an analysis on which business processes should be improved. Gather copies of key documents such as invoices, batch tickets and bill of lading for the analysis.
The objectives should be clearly defined prior to implementing the ERP solution. ERP systems are massive and you won’t be able to implement every function. You need to define the scope of implementation
The team should develop a project plan which includes previously defined goals and objectives, timelines, training procedures, as well as individual team responsibilities. The end result of the project plan should be a “to do” list for each project team member.
2. PROCEDURE REVIEW
•Review software capabilities.
•Identify manual processes.
•Develop standard operating procedures.
- Review software capabilities
Dedicate 3-5 days of intensive review of the software capabilities for the project team. Train on every aspect of the ERP software to fully educate the team on capabilities and identify gaps.
- Identify manual processes
Evaluate which processes that are manual and should be automated with the ERP system.
- Develop standard operating procedures
For every aspect of your business. These procedures should be documented. Make sure that you modify the document as your change. This is a huge task, but it is critical to the success of your implementation.
3. DATA COLLECTION & CLEAN-UP
•Collect new data.
•Review all data input.
You can’t assume 100% of the data can be converted as there may be outdated information in the system. Determine which information should be converted through analysis of current data.
Define the new data that needs to be collected. Identify the source documents of the data. Create spreadsheets to collect and segment the data into logical tables
After the converted and manually collected data is entered into the ERP database, then it must be reviewed for accuracy and completeness. Data drives the business, so it is very important that the data is accurate.
Review and weed out unneeded information such as customers who haven’t purchased in a while or are no longer in business. Now is the time for improving data
accuracy and re-establishing contact with inactive customers.
4. TRAINING AND TESTING
•Pre-test the database.
•Train the Trainer.
•Perform final testing.
The project team should practice in the test database to confirm that all information is accurate and working correctly. Use a full week of real transaction data to
push through the system to validate output.Occurring simultaneously with testing, make sure all necessary interfaces are designed and integration issues are resolved to ensure the software works in concert with other systems.
Make sure the actual test the Standard Operating Procedures outlined in step 2, and determine whether modifications need to made.
It is less costly and very effective if you train the trainer. Assign project team members to run the in-house training. Set up user workstations for at least 2 days of training by functional area. Provide additional tools, such as cheat sheets and training documentation. Refresher training should also be provided as needed on an ongoing basis.
The project team needs to perform a final test on the data and processes once training is complete and make any needed adjustments. You won’t need to run parallel systems, if you have completed a thorough testing.
5. GO LIVE AND EVALUATION
- Develop a final Go-Live Checklist.
- Evaluate the solution.
- Sample Final Go Live Countdown Checklist Sample
- Physical inventory process is complete.
- Beginning balance entry procedures are developed for all modules
- Any transition issues are addressed.
- Documents & modifications are tested thoroughly.
- Executives and departments heads are fully trained.
- Vendor is available for go-live day.
- Users will have assistance during their first live transactions.
ERP Software Implementation Benefits
- Lower IT Costs
- Total Visibility
- Improved Reporting and Planning
- Complete Customization
- Improved Efficiency
- Customer Service
- Data Security
- Improved Collaboration and Workflows
- Deep Integration
- Improved Data Quality
- Improved Data Accessibility
- Standardized Business Processes
- Facilitated Regulatory Compliance
- Improved Supply Chain Management
- Superior Scalability