ERP Implementation Plan:

Methodology and Process

• Enterprise resources planning (ERP) solutions are designed to support an
organization in just about every aspect of business operations by
centralizing data and through automation.

• The central feature of all ERP systems is a shared database that supports
multiple functions used by different business units.
 What is the ERP implementation process?

• Every ERP implementation is slightly different with no standard template,

but overall, the implementation process has core similarities in each
instance.
• an ERP implementation strategy includes similar phases to get from
purchasing the solution to installing licenses or software, transferring
financial and transactional data, and mapping business processes and
system access for each department, user group or business role.
 ERP implementation methodology stages

• The methodology of an ERP implementation can be simple or complex,

based on factors like size of the organization, the project’s complexity,
and whether you’re implementing an on-premises or cloud solution.
 ERP implementation methodology stages
(cont)
• On-premises solutions have the added steps of including hardware infrastructure
installations as well as adding staff to maintain the infrastructure. All support
activities, such as configuration hosting and setup, are managed in-house, these
added phases can change and often prolong the implementation.
• Cloud ERP implementations can skip some of the traditional steps that an on-
premises deployment involves. The solution provider manages the infrastructure,
allowing businesses to focus on data migration, process changes and employee
training. The added steps of hosting, servers and maintenance are typically
managed by the ERP vendor.
 ERP Project Team
• The project team is responsible for the overall health of the implementation
project, overseeing day-to-day initiatives and timelines that guide members
through their ERP implementation checklist.
• Members of the ERP project team will consist of project managers from the
ERP vendor and the organization, as well as analysts, developers, key users
and engineers.
• Project teams are slightly different.
• They consist of a project manager, key users and often a consultant from the
ERP vendor to help install, migrate and test the new solution.
How much does an ERP implementation cost?
• estimate based on factors like business size, number of users or licenses required, training
sessions, customizations needed, app and data migrations, and whether the ERP is an on-
premises vs. a cloud solution.
• best practices suggest planning for at least one percent of the organization’s operating
budget.
• On-premises solutions demand a larger capital expenditure because they require large
upfront and ongoing costs for purchasing and managing the perpetual license fee.
• on-premises solutions have added costs related to maintaining the solution’s IT
infrastructure with the necessary hardware, servers and facilities, as well as additional
personnel to maintain these systems.
 ERP Change Management Plan

• One of the largest hurdles during an ERP implementation is transitioning

employees to your new business processes. Migrating employees to new
systems, rules and procedures requires clarity and training, and companies
need a solid change management plan for that.
 ERP Change Management Plan
• The change management plan should have a detailed roadmap that defines the specific
goals of the new processes with some of these elements:
• Analysis – Analyze the new platform’s readiness to identify opportunities and risks.
• Role Assessment – Look at your current workforce and recognize personnel gaps.
• Communication plan – Develop a detailed communication plan that defines objectives,
milestones, deliverables and transition processes.
• Workforce enablement – Help employees thrive in the transformed organization by
implementing new roles and a training plan.
• Training execution – Perform onboarding training for the new systems.
 Design and Development
• the customer and vendor define procedures and document new processes of how
the new ERP solution will manage data.
• they develop a database framework that meets those new requirements and
procedures.
For example, if you’re migrating to a cloud ERP solution from on-premise or if the
new solution needs to connect with other platforms, like a POS or an inventory
management solution, the project team will need to design and develop those
customizations or APIs before migrating any data to the new system. The team then
identifies the data from their old solution that needs to be transferred to the new
solution.
 Data Migration

• The goal is to move clean data that has been identified, scrubbed and
mapped to the corresponding location in the new system.
• This process is more efficient by coordinating with a project analyst before
the migration to perform a data analysis and mapping analysis.
 Training

• Training should be comprehensive and available to employees through a

combination of online learning opportunities.
• E-learning allows users to complete training on their own time and focus on
training that is geared towards their role specifically, all while making
broader training accessible.
 Testing

• After installation, administrators go through a testing phase with the

vendor to ensure systems and data are running as expected. This is also a
chance to troubleshoot any problems or establish remedies for areas that
aren’t up to standard or running as they should.
• Developers, engineers and other users from the project team test
connections and validate data migrations, fine-tuning adjustments so the
ERP solution runs optimally before the final data transfer and go-live date.
 Go-live and Deployment

• Systems have been developed, most data has been transferred, product
training and onboarding activities have occurred and testing is complete.
• Transaction-based data—inventory, orders, POs, AR/AP, and balances—is
dynamic and changes frequently, so you should transfer it over at the last
moment to maintain accuracy. After you’ve fine-tuned everything, set the
go-live data and the system is ready for use.
 Post-mortem and Evaluation
• To evaluate the solution’s efficiency, you should look at factors like how customers react and employee
adoption habits, to determine the actual return on investment by asking these questions:
• When it comes to workforce productivity, are employees using and adopting technology to its fullest
potential?
• Is the ERP automation resulting in noticeable efficiency or improved customer satisfaction?
• Are there higher or lower retention rates for customers?
• Are referrals and sales metrics improving over time? How about customer relationships?
• Are there reduced levels of inventory and better workflows through planning and control?
• What does production throughput look like?
• Measuring intangible metrics may be difficult to evaluate. With the ERP’s automated processes, you
should find improved workflow efficiency with fewer errors throughout the organization, resulting in
increased revenue over time and saved costs.
Waiting a few months to a year to evaluate these intangible metrics may paint a better picture ERP and
organizational performance, as employees may still be adjusting to the new solution.
 Support

• Post-implementation support is the final piece of an ERP implementation project.

• Experienced support personnel should be available to assist with unforeseen issues
and be able to answer questions.
• No matter the type of business, implementing an ERP solution is a critical project
that demands careful planning and commitment from the entire organization.
• ERP implementations can be a large undertaking, but with proper planning and
execution, implementing a system should lead to increased revenue with fewer
resources involved.