ERP or Enterprise Resource Planning software is an integrated enterprise solution that streamlines the entire business process, ensuring timely completion of activities conducted.
Although the adoption of ERP solutions isn’t new to the business landscape, it has substantially gained huge momentum over the last few years, with most of the organization understanding its worth.
The main objective of ERP implementation is to jeopardize the errors caused by human work, carrying out the process efficiently to stand out from the competitors.
Considering the high-end work required for ERP software implementation, it can be concluded as one of the major steps towards elevating the entire functioning. Though the success of implementation depends on the efficiency of the ERP consultant you would be recruiting, one must remember the implementation is not an overnight process and doesn’t guarantee success.
For instance, installing ERP software like Tally ERP9 can help you organize your entire functioning. But to comprehend, the undertaking was a success or not entirely depends on the strategies you apply.
Let’s take a look at the benefits of ERP implementation.
- Automation of daily business operation, reducing operational cost and administration costs.
- Speeds up the process, facilitating reduced cycle time.
- Improves customer experience by streamlining every activity.
- Diminished inventory levels due to optimum usage of products.
Steps for successful ERP implementation
Step 1: Defining Scope And End Objective
The evaluation and implementation of a project depend on how well the scope has been defined. And the process is no exception in the case of ERP implementation.
Setting up realistic goals is the best way to begin the implementation process. Try answering the following questions to initiate the procedure;
- The reason you are willing to implement EPR
- Problems you regularly face with your product.
- Evaluating your business process
- What are you seeking to solve?
Step 2: Jotting Down The Objectives Of Project
In order to make the implementation a success, it is important to know what the objectives are. Jotting down objectives at the beginning of the process is the best way to work on the bottlenecks. It even helps with brainstorming and analyzing the challenges of regular operation.
So to have proper control of ERP, it’s better to write down the objectives dedicated to achieving organizational goals, benefitting the end product.
Step 3: Anticipation Of Risks
One of the major reasons that crumble down an effective ERP implementation is overlooking the associated risks.
While jotting down the objectives, it is important to write down potential risks as well. It would enable the appointment ERP consultant and the business owners to prepare to combat the backlash of implementation.
Step 4: Formulating Teams And Assigning Roles
One of the major mistakes to undertake is assigning ERP-related work to regular employees.
Formulation of a designated team that expertise and solely works for ERP is essential. It allows the worker to put more focus on one thing, which significantly increases its success rate.
Besides, designating roles as per the skills is also important. It simplifies the process and keeps them motivated because of your conviction.
Step 5: Selecting An ERP System
There is enormous ERP software to choose from. The list is so long that one might feel lost while selecting one specific for their business. Since the software is the chief component, here is a quick view of different types for your convenience.
- Own custom-built ERP system: it is the best system for the ones starting right from scratch.
- Cloud base industry-specific ERP solutions: such software are appropriate solutions for businesses willing to have immediate results.
- Customized cloud-based ERP solutions: this software is appropriate for businesses that have high customer demands.
Step 6: Project Plan
Now that you know your objectives, anticipate the risks, and select software that fits your needs, it is high time to create a project plan.
Among all the reasons listed for the failure of ERP implementation, poor project planning has been topping the list since its inception.
Implementation of ERP stakes both time and money. Therefore it’s important to curate a plan before digging your hands right into the work.
Your plan should necessarily include;
- Predefined goals
- Jotted objectives
- A to-do list for designated members or teams if you hire an ERP consultant.
- Realistic time estimation
- Case study for clear understanding
- Result study for final testing.
Step 7: Draft A Communicable Plan
Try draft a communicable plan by;
- Scheduling meetings with IT teams
- Keeping the checklist updated with the progress.
- Try avoiding alteration of teams to avoid confusion.
- Pre-decide the meeting agendas
Step 8: Prepare For Change
You need to understand that preparing a solid paper plan and virtual execution are two different things. Things that might seem easy and flattering theoretically, might not be that comforting in reality. Therefore one needs to make sure the implementation plan is practical execution proof as well.
Here is what you can do;
- Inform your staff while planning to adopt the change instead of informing them while implementing.
- Preparing training videos and other possible aids to help your staff absorb the change.
- Try avoiding redundant workload to maintain their productivity.
Step 9: Support And Maintenance
Implementation and execution don’t mean the work is done. In order to achieve constant success, you have to keep the work on and provide support and maintenance as and when needed.
No matter which industry you resonate with, the application of the control ERP system has always proven effective. Though the implementation is challenging, following the above steps can ease the process to a great extent.