ERP is a type of software application used most often by medium and larger enterprises, and sometimes by smaller companies. ERP software focuses on integrating business processes into a single, streamlined database and user interface by offering modules for each of the core business areas: human resources, financials, inventory management, sales and customer relationship management, along with other business-critical functionalities.
The main goal of ERP software is to integrate formerly separate databases and processes into a single source of truth, instead of these databases and processes functioning in silos. When a customer places a product order, the ERP creates transaction information within customer relationship management and inventory management modules, along with any other modules connected to sales activities.
Thus, the ERP fosters data visibility and analysis across multiple business departments from a single system. At the same time, staff don't need to enter the transaction into multiple databases manually.
Connected through an ERP system, information sources that govern distinct business objectives can communicate with each other. This leads to reduced manual data handling, faster business cycles, IT cost savings, and business growth potential without hiring new personnel or investing additional capital.
Popular approaches include enterprise-wide full installation, unit by unit, and key-process installation. The system you choose must match the needs of your organization. For example, smaller business can attempt an enterprise-wide installation, while this type of approach is impossible for most larger companies.
Before implementation begins, the software selection process should have led your organization to choose ERP software that aligns well with your vital business processes. Nonetheless, during ERP implementation, minor adjustments must be made to ensure that processes fit as well as possible with the incoming software solution.
Every approach to ERP software implementation must include an assessment of the current IT infrastructure. Avoiding downtime can be achieved through redundancy, including making sure there is access to stable internet communications with the bandwidth needed to install the new system while the previous software is still in operation.
Before ERP system implementation, always remember to take full data backups to recover instances of your network quickly. This will minimize downtime if you run into any unexpected problems. The quality of the data imported from your old system into the new system will determine your ERP's initial effectiveness.
Duplicate data should be removed and antiquated data should be archived. External data sources, such as spreadsheets, need to be merged into the new database.
Reports which outline progress towards organizational goals and objectives must be part of the approach. The creation of compliance reporting, key performance indicators (KPIs), strategy reports, and daily, weekly, monthly reporting should be aligned according to business goals and the processes designed to achieve the desired end result.
A successful ERP implementation is the difference between an ERP that functions and an ERP that provides outstanding investment return by supporting specific business objectives. ERP software selection is separate from the implementation process, but choosing an ERP that meets your business's needs dramatically increases the odds of a successful ERP implementation.
Select the ERP solution which best matches your business goals and processes
Map the journey of your business interactions with the ERP system, including customizations
Create a clear implementation schedule and budget, including measurable goals and objectives
Identify a change management team, responsible for dealing with uncertainties, unexpected issues or resistance towards new business processes or IT systems
Create a team of stakeholders, including department heads and end-users, who will carry out various ERP implementation aspects, including providing or assisting with training
Clean and organize data to be imported from old systems into the new ERP database
Monitor and report on implementation process to stakeholders throughout each step to avoid scope creep and the disruption of business productivity
Successful ERP implementations will vary slightly depending on verticals and business requirements, but the basic steps remain similar regardless of the industry.
