ERP Implementation Plan: Step by Step Methodology

Have decided to implement ERP System? It is not too easy process. It needs lots of efforts. However ERP implementation failure is common. Hence before implementation process, you need to do a whole lot of planning. There are severe things that should be remembered but the first thing that you should know is:

What is the ERP implementation process?

Answer is ERP implementation process includes installation of your newly selected system that transfers all your data & provides training to employees to use the software.

ERP Software System is collection of software that combines all your business modules together & makes it more transparent in comparison to previous one. It makes your business online.

Now where do we start?

Now we will discuss step-by-step plan for erp implementation process. It will cover:

Creation of an effective management plan

Discussion about hidden erp implementation costs & how to forecast them

Being live & how to evaluate the success of project

The stages of ERP implementation methodology:

  1. Assemble an ERP Project Team
  2. Creating an ERP Change management Plan
  3. Estimation of ERP implementation cost
  4. Data migration
  5. Training to employees to use ERP Software
  6. Steps to take when ERP goes live

Assemble an ERP Project Team

An efficient & dedicated team is the key success of any project. It makes your job much easier. A project manager, application analyst, application developer, QA test engineer will be the major members of your ERP implementation team. To insure implementation ore smoothly, you will need a few more people senior manager, engineers & shop floor staffs, shop floor workers, sales department staffs, workshop staffs, etc.

Creating an ERP Change management Plan

ERP Change management plan includes

  1. Implementation cost forecasting & drawing up a budget
  2. Determination of ERP implementation schedule
  3. Data migration
  4. Training to ERP user base
  5. ERP testing & making it live
  6. Evaluation of success of project

Estimation of ERP implementation cost

Before implementation, it is good practice to estimate the total cost. You should include all factors in your implementation budget to avoid being hit by hidden cost. The major factors that affect implementation cost are Hardware/network upgrades, Staff overtime pay, Vendor training, customization and consultancy fees, Data backups and storage, etc. It is necessary to clear all doubts before finalizing the implementation deal.

Data Migration

This is the real time when your company goes into a new world. Data migration of your company to new ERP includes:

Data Trained employees are the key success of ERP implementation. A perfect user training plan is essential in achieving this.

  1. cleansing and verification
  2. Database setup
  3. Mapping legacy data to new database fields
  4. Data transfer to the new system
  5. Testing and verification of legacy data
  6. Testing and verification of new data inputs 

Training to employees to use ERP Software

Steps to take when ERP goes live

This is major step towards erp implementation. The major things that should be cared include:

System testing pre implementation & post implementation.

Scheduling of staffs including overtime or temporary staff

Identifying metrics for project evaluation

Creating a communication strategy for system downtime

Network speed and reliability checks

Data backup processes

Evaluate the success of your ERP implementation project

Now erp system has successfully implemented & we have to evaluate the project. A successfully implemented ERP system minimizes the data errors due to process automation. The major features of successfully implemented ERP system are:

Increase in productivity levels

Increase in client satisfaction This is the step-by-step erp implementation methodology & it will help you when you are going to decide an erp system for your business process

Benefits of Keeping Your ERP Software Upgraded

Business owners buy enterprise resource planning software to increase company’s potential but they forget that nothing is perfect & immortal. The erp software they are right now also needs to be upgraded. Present erp software system without upgrade will not be enough in future. Service, maintenance or system updates keep your organization running smoothly through updates & regularly upgrades that are necessary to keep your work smoothly.  Improvement & system upgrade is necessary to work better. With updates of erp system, employees are able to access new features & capabilities & these features can help you to stay ahead of your competitors. At the time of erp implementation, you should clear the things like system upgrades & service with erp vendor. Many people think why upgrades are necessary. Upgrades are necessary to keep the company working at an ideal level. Here are major reasons that will clear the doubts.

Improved Reliability

When software performs slowly & requires lots of time to perform any action, this is the time to upgrade your enterprise resource planning erp software. Since erp is like life line for your business hence upgrades are necessary otherwise whole business process may collapse. When system goes slow down, employees are also get frustrated & its affect their ability to do their job properly.

Ideal Security

Updated systems are packed with latest technology and security measures hence it keeps you far from headache & unnecessary tension of malware as well as spyware attacks. Since data is heart for any organization or for any business process, hence it is necessary to keep it safe & secure. Erp system upgrade is necessary for ideal security of data since upgrades makes the system more strong.

Better Integration

Erp system implementation integrates multiple modules of an organization. Updated system allows employees to connect with other employees more easily. Now they can share their ideas & can get views of other on their ideas.

Improved Employee Productivity

Upgrades come with several functional benefits. It improves not only the backend process but also the functions that software can do. Working capacity of organization increases in several areas. Before implementation of ERP System, it is essential to talk with erp vendor about system upgrade from time to time.

Opportunity for company Improvements

ERP upgrade offers benefits of getting a chance to process of the company & check the areas of improvement. After information about fault or areas of improvement, action may be taken to improve the faults. The improvement may be assisted by the software updates. Hence updates are necessary to improve the organization in multiple ways like increasing efficiency of the company.

Lesser IT costs

Erp is an investment & at end it lowers overall IT cost. It happens actually due to updates of system. Since after upgrades, outdated technology is eliminated & new improved process increases productivity. With erp system upgrades, all problems are eliminated & now employees are able to work faster as well as more efficiently. Since employees work faster & efficiently, the IT cost decreases automatically.

The Top ERP Software Selection Criteria

Selection of perfect ERP tool for your organization is a very difficult task. ERP software of different types is available & each set has different capabilities, strengths & drawbacks. Choosing the right erp vendor is a very complicated process & it requires lots of researches.

Today the world has become advanced. Everything has become online. Old accounting system is not able to store large amount of data & full fill requirement of new age. There are also several drawbacks of old accounting system. Now for each successful business or organization, there is a need of ERP System since Enterprise Resource Planning Software can store large amount of data. Actually, ERP Software unifies all modules of a business process. The main feature of this system is that it is accessible from anywhere anytime. Managers are able to contact their employees & also can keep eyes on their work.

Reasons to Buy an ERP Solution

Enterprise resource planning system automates the business process & also ensures accuracy as well as integrity of data of an organization.  It has ability to improve organizational collaboration. It helps to meet the business needs along with financial goal. It keeps up-to-date report of all departments of an enterprise.

Real-Time Analytics & Data

Another benefit of ERP System is access to real-time analytics. Real time data analytics helps to take important business decisions & ensures process optimization.

Flexibility

Flexibility is another important feature of ERP Software. It helps to take control of your business, offers better customer service, clients satisfaction to be remain in competitive field.

Better Decision Making

Since with help of ERP software, crucial reports are prepared & with help of this report, it is easier to take decision.

Reduced Complexity

Since ERP unifies the business modules of an organization, hence all modules work on a single database. It also eliminates data duplication & maintains data integrity with a “single source of truth.”

ERP Selection Criteria

Since ERP is like a life line for organizations thus care should be considered before selection of an ERP System. There are few tips that can help you to select a new enterprise Resource Planning Software.

  1. Make a list of ERP Solution Vendors & gather information about them. Initially prices of many vendors appear similar but there are several factors that affect the final costing like annual support fees, implementation charges, etc.
  2. Customer Reviews: Customer reviews can help you to take the right decision since reviews shows that either the vendor offers best services or not.
  3. Support: Test the support system of the vendor. A best service provider ensures that you are completely satisfied with service.
  4. Advisory Capability: Ensure that the service provider understand your business. If the provider will understand your business, the working will be smoother.
  5. Experience: Experience is another important feature that ensures service provider eligibility in that field.

Major ERP Trends of 2019 to help you out in your Business

The year 2018 was an amazing year for erp terms related to it like ERP implementation, ERP Software vendors, developers & also for its users. Implementation of erp system streamlined the accounting process of business, reduced cost of company & helped to improve their decision making process. Now ERP software has become a necessity for every type of organization in all types & sizes.

In recent years, demand for ERP software system implementation has increased due to emergence of cloud deployment as well as artificial intelligence. HRMS & CRM has become most favorite enterprise tools for business process. These softwares are also used by online stores. There are few top ERP trends that will help you to make better use of ERP software Solution.

Improved Mobile Accessibility:

In earlier time mobile was not too important. But with invention of smart phones the whole world has become mobile centric. Even business can be accessed & operated by smart phones.

Employees are also able to access their work from mobiles. Developers are giving focus on making mobile supporting erp software. ERP accessibility on mobile phones is the hot topic in year 2019. Both clients as well as vendors are focusing on making erp software for mobile devices.

Importance of Security Measures:

As the technology has become advanced, data security is also a major problem for companies. In 2019, companies & organizations are looking for improved security mechanism for ERP System that is able to protect their data & the same time do not have any effect on usability as well as accessibility. Functionality & speed are equally important for business process.

Uniqueness of Features

In year 2019, special features & functionalities will be major theme for erp system implementation. There are several erp tools in the market but most of them lack special features that a business need. If you are looking for implementation of erp software in 2019, the major thing to be care will be either the selected software meets with business’s requirement or not?

Real-Time Response Capability

In past few years, there is a drastic change in Enterprise Resource Planning architecture. Now the erp system is more reliable and provides real-time responses to give you a clear insight about how your business is performing. New ERP software is more responsive & uses in memory computing as well as analytical processing. It allows users to generate report on the basis of real data. This is the smart feature of new erp system that empowers business with real time insights to generate successful forecasting as well as planning.

Expanding Human Capabilities

For growth of business, the new erp system with intelligent solution provides real time data for business operations. The new feature of erp helps to improve operational efficiencies, sales, and productivity of a business process or an organization. The business intelligence feature of the new software forms the integral part of the system. Thus in year 2019, the new erp tool will make meaningful sense of data & will expand human capabilities.

The Top Challenges for ERP Implementation in SMBs

ERP Implementation

Generally it is considered that Enterprise Resource Planning (ERP) systems are suited for larger enterprises. This believes is due to several reasons like high cost of ownership, the complexity of implementation and the continuous maintenance costs. Regular maintenance of ERP System is necessary since it works on huge amount of data & regular maintenance of the software makes it faster & reliable. However in last decades erp has made possible for large sized organization as well as small sized business. Both types of organizations avail benefits from erp software. Though ERP is beneficial for SMBs (small and medium-sized businesses) but still there are several obstacles especially during implementation & it create perception that ERPs is suitable for large sized organization. There are several challenges that arise during ERP implementation.

  1. ERP Customization: The most common concern that arises during erp implementation is customization. Since customization is done according to need of the specific organization hence several problems arises during implementation & after implementation. Every company has different way hence it is necessary to do some adjustment while implementing enterprise resource planning software. Sometimes customization need costly up gradation.
  2. The users: Users are one of the important factors for successful implementation of erp system. If the user does not know more about this software & does not know how to operate it, the software may not be useful for the organization. We are human & easily get confused. Hence an ERP user should be trained & professional.
  3. Investment in Internal Hardware: Slow & heavy hardware are incredibly unproductive. Since erp connects several departments of an organization hence it stores huge amount of data & there is a need of significant amounts of storage so that the software may give high work performance. A properly manager erp system with proper hardware has the ability to bring more customers toward business & increase customer satisfaction. Selection of a software package is necessary but technical issues are also important & should be resolved. The work station need to be revised for new system new hardware items may need to be ordered, purchased, and replaced. The entire internal network also need to be analyzed and modernized if required, and the speed and bandwidth of the existing Internet access should be taken into consideration along with possible technical concerns about the mobile devices being used.
  4. Communication: Communication is also a big factor for success of any enterprise resource planning software. At every stage of erp implementation, communication between employees is necessary.

These are some top challenges that arise during erp implementation.

How to Increase ERP Efficiency?

ERP or Enterprise Resource Planning Software is an advance accounting software that is designed to run your business efficiently. ERP is wide range of modules & all modules are interconnected with each other. The ERP Software System integrates almost all functional units of an organization in a unified form & provides better result. The data is shared to all functional modules of the system & thus it helps management to take better decision.

                                              Fig – ERP System & Its Modules

The ERP System cam in existence in late 90’s century and then to now it has changed from time to time & became more secure. At present it has become more powerful & we cannot imagine success of our business without implementing an ERP System. The best feature of this system is that it may be customized according to organization’s need.

ERP is like life line for a business. It has become more popular in last two decades and being widely accepted across different businesses. The feature of access from anywhere anytime, the business now may be conducted from the comfort of home.

Since erp is the most important part of a business, increasing efficiency of your erp system, is an excellent way to ensure success of your business. Now clerks, management & other related people are choosing mobile over desktops to operate their business. With mobile phones being entwined in people’s lives, using ERP software on the mobiles will become inevitable. This is increasing the need for ERP software to incorporate mobile capabilities and compatibility with different devices.

Increasing Efficiency of ERP System:

Increasing efficiency of the erp system is the excellent way to ensure that the business will last. Enterprise resource planning software helps business to stay. This means making erp user friendly increases its efficiency. The new generation & young people that have grown up with social media & advanced technology will not like to work with outdated system. Definitely, the new erp system will attract him & thus it will bring more customers toward its business.

ERP System with new features every year, increases success of your business. Hence modification and bringing new feature from time to time is necessary to increase efficiency of erp system. Maximum uses of data & business intelligence tools increases efficiency of an enterprise resource planning software. Old erp software lacks customer involvement and focuses on accounts, warehouse management, supply chain management, & thus it is less effective. But if erp is integrated with several other factors like e-commerce, social media, finance, it becomes more effective & customer centric.

Flexibility is another feature that increases efficiency of an erp system. The resource planning software that has several options for different modules, business types & functions is the best to choose since it is more efficient.

The Purpose of ERP Software in an Organization

Introduction of ERP:

Enterprise Resource Planning Software or ERP software is a new aged technology having planned & collective approach. It is a complete business solution made up of different business modules specially created for business environment.

Purpose of ERP System in Your Business:

Enterprise resource planning software is widely recommended software solution to improve efficiency of any business or any organization. It is an integrated application of several software modules & correlates all modules of a business together. The key feature of an erp system is better planning of production, inventory control, marketing, sales CRM, HRM, etc.

The main purpose of implementation of erp software in an organization is to unify the entire system & to make it work smoothly in beneficial manner. This system has proved to be a vital element in establishing the goal.

The erp software is as vital as the air in our life. It is not possible to remain in competition in the business industry without implementation of this software. ERP system is necessary for all types of organization to remain in competition either they are small, medium or large. It can be implemented in all types of business processes & no matters what business objectives they have.

Enterprise resource planning software helps to resolve several issues like:

  1. Customer Relationship Management
  2. Internal efficiency
  3. Performance, productivity as well as profit
  4. Financial & planning deficiencies.

ERP software has become a life line for any organization. It is used in an organization with several aims that are as follows:

  1. Integration of an organization: ERP helps to integrate several departments of an organization & hence reduces the data management as well as storage costs.  Integration is the main aspect of an erp system. The whole data becomes online hence it becomes accessible online from anywhere any time.
  2. Cost Advantages: Cost advantage is another important feature of ERP. It reduces the cost involved in managing the large amount of paperwork. It makes accounting smart & fund misappropriation stops.
  3. Improves Accuracy: Accuracy of work improves since paper work reduces & all work becomes online. It helps in reducing data errors in data entry & management system. It ensures better management of resources & work distribution. If an organization is plagued with efficiency probably there is need of an erp system to bring more orders toward the organization.
  4. Better Management: ERP integrates the entire business & also brings all information related to business at your finger tip & ensures better management. It also gives ideas to improve & moderate the business process.
  5. Employee Management: ERP helps HR managers to keep contacts with employees as well as allows management to monitor & gauging an employee’s performance and therefore, reduces your efforts at the time of performance review and increment.
  6. Customer Management: ERP also helps to maintain better relationship with customers. It gives permissions to organize & access all customer related information.

ERP implementation is not an easy task & it requires very careful planning by a team of experts. It involves several stages like Structured Planning, assessment of the business process, compilation of data, educating the staff and testing and finally the usage of ERP and its evaluation.

Ebizframe is a well known name among ERP software providers in this industry. Ebizframe provides the best erp deal at affordable cost for your business solution.