Best Practices for ERP Implementation

By | September 28, 2013

Enterprise Resource planning (ERP) is a critical project that needs to be considered by businesses. Because any wrong step may ruin the entire implementation process. Example, if your defined business requirements are not aligned with the software’s technical capabilities, the time, money and efforts you spent on its implementation goes waste. Here the problem is not in the software but the way the organization implement it. In this post, you will see the best practices to successful ERP implementations:

  • Know your business process and its Key requirements: First understand your business process because it is essential for selecting the right ERP vendor. Once you get a clear & complete picture of your corporate business process, then define business requirements like what is important and what standardized process should look in the future etc.

After defining requirements, then prioritize them based on satisfying the immediate needs, the one which has major affect on business process and followed by other objectives. Finally make sure that your key business requirements should align with ERP technical capabilities. This helps in evaluating and selecting right ERP software and to determine how much customization is required.

  • Build a business case: Business case need to be demonstrated before you commit resources and funds to the project. For that, you need to build a comprehensive business case which will asses your current business performance – revenue, services, potential problems against expected ERP post implementation performance. This helps to get quantifiable measurement of progress during implementation and also to select which software module matches with your business requirements.
  • Ensure project management and resources: The success of ERP implementation depends up on the dedication level of the project manager in planning and management. Organizations should not rely completely on internal resources because you need experts in ERP and business process re-engineering (BPR). However, internal resources are important to be involved in the implementation because they will own when once the project is completed.
  • Gain top management commitment: Initially, ERP initiatives where taken by CIO or IT director but the support of top executives is critical for successful implementation of the project. Because these people are responsible for setting business strategy, directions, funds and resources to the project. Make sure to maintain a frequent communication with top level executives about ERP implementation plans and changing process which are vital to build agreement and excitement across your organization.
  • Early planning: Organization need to have a comprehensive planning before implementing the project. This helps in completing the project on time without any delay.
  • Focus on Data migration: Data is organization’s asset. Make sure the data to be migrated between the legacy system and new ERP system should be put through duplication process to remove redundancies. Another thing, you need to focus on how much historical data should be brought into the new ERP system. Therefore, you need to be careful in data migration between the systems. Because they may give negative impact on your business operations.
  • Training and change management: Make sure the ERP provider you choose should be able to train and support your staff on how to use of the system and also should be able to solve the problems and questions that arises while using the system. Because people find difficult to change their roles and behavior that they have learned from many years. Over a period you need to introduce your staff to new process and job roles. Therefore, this helps employees to accept and follow these developments.

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