Enterprise and Resource Planning software solutions have become a necessity and unavoidable aspect of every form of business operations. Today with the automated and ever-changing world of growth and innovation where the models of business change from day to day, the use of ERP for business can help them to deliver the right productivity. However, considering ERP implementations, it’s one of the larger investments for a company no matter the size, scale, and sector of its operation. It’s not only the burden of investment on the company’s budget but also the ERP implementation process which takes various variables and aspects of the business into consideration.
Right from choosing the best ERP software, choosing the suitable ERP for business, considering the operation of ERP(Whether it should be cloud ERP or not), and finally the ERP implementations, there are various aspects to consider. This blog will provide a clear and deeper insight into the ERP implementations process, the variables involved, steps, methodologies of ERP implementation time, and many more aspects of the process. Let’s consider them one by one in detail to provide you with a clear understanding of the process.
Before Starting the ERP Implementation Process
The first step in regards to starting the ERP implementations process is choosing the right ERP software that suits your business. There is numerous Enterprise and Resource Planning software which are available in the market today. You should consider all the options and choose the right one which will help to smoothen and simplify business operations with the intervention of automation technology and various other advancements that help the business operations. There are dedicated ERP Software for manufacturing, ERP for colleges, ERP for business, and much more available in the market today.
Odoo is one of the most modern and advanced ERP systems which cater to almost every aspect of the business operations of a company. Odoo implementation will help businesses to transform their operational methodologies into simple and efficient ways.
Once the right ERP is chosen the next step is to reach out to the right ERP implementations partner. As the major percentage of the ERP implementations process is completed if you have partnered with the right implementation partner. Nevpro Business Solutions is one of the top ERP implementations service providers for various top-level ERP systems such as Odoo, Bitrix, Salesforce, Microsoft Business One, and many more.
An Overview of ERP Implementation Process
Once the ERP and the Implementation partner have been chosen by you you can start with the process of implementing the perfect ERP system. The following are the steps that you can follow for the ERP implementation process.
- ERP development and installation
- Further customization and configuration of the settings
- Transfer of data from the old system or files
- Setting up access rights, employees, and the levels of management for the functioning of the company.
- Training the end users on the new software.
The time taken for the ERP implementation process will depend on the customization which is needed, the level of configuration, and the aspects of the complexity of the business operations. Based on it the ERP implementation process will take from two months to more than two years. It also depends upon the skill and capability of the implementation partner. Therefore, its always advised choosing the right ERP and the best ERP implementation partner.
Steps Involved in ERP Implementation
Developing the team of the process to start the ERP implementation is the initial possession to be done. It should be a collective effort from both the business and the implementation partner. A typical ERP implementation team will consist of an executive sponsor, various business process owners, and the end users from the business side.
And from the ERP implementation partner side, there will be business analysts, technical consultants, and a project manager. Additionally, there is no hard and fast rule that these should be the members, it can be anyone from both aspects who are capable to contribute to the process.
1. Scope and Prediction
There Should be clearly defined goals and milestones to be achieved with the respective timeline which will help the implementation process to be completed. Further, a clear drift on the implementation aspects and the project needs should be defined Finally, the customization needs of the ERP based on the business should be drafted and discussed with the implementation partner. The process maps and expected results at the end will also add up to speed up the process and provide a clear picture and status at each stage.
2. Analyzing the Business Requirement
The aspects of the ERP system on where to be installed, how it should be configured and the impact on day-to-day business operation with the implementation should be considered.
3. Migration Form the Old system and Testing
All the required data and the tools which are needed for the business operation should be migrated from the old system to the new ERP platform. Further, timely checks on these data, its operations, and the entire functioning of the ERP at different levels should be completed.
4. Training the Employees
The employees in the company who are the end users and the people who work with the ERP system should be trained on how to function effectively with the ERP. This can be conducted in batches, along with doubt-clearing sessions and education on best practices to follow for the utmost efficiency and effectiveness of business management.
5. Going Live and Post Live Support and Maintenance
Once all the checks are completed the ERP system can be established to be used for business operations management. Further, support from the implementation partner should be ensured during hardships while using the ERP software.
The Best ERP Implementation Method
Commonly there are two ERP implementation methodologies followed in the industry. One is the Big Bang ERP implementation and the other is a phased approach.
1. Big Bang Implementation
As the name suggests the entire aspect of the ERP implementation is completed in a big bang where you start the implementation process involving every aspect. Here you transition every employee and user of the ERP all at once and each module is implemented and goes live at the same instance.
One of the major advantages of this is that the time taken for the implementation process to complete is relatively lower compared to the phased Implementation methodology. And the major disadvantage is causing major disruptions to the day-to-day business operations and will be stressing each employee and the user of the system in the company.
2. Phased ERP Implementation
In the phased ERP implementation process, each module or a functional aspect or a department in a business is completed in phases and rolled out once each phase is completed. This is a slower process in consideration of the big bang implementation methodology. Moreover, this is a gradual implementation process that is completed on a process that operates based on defined timelines and milestones. In comparison, this will be a time-consuming process for ERP implementation. However, the error rate and the stress on employees and the business are comparatively lower.
One methodology is greater than the other but choosing the methodology will solely depend on the ERP software that you choose and based on the ERP Implementation partner that you have partnered with.
Actual Time Taken For an ERP Implementation
Considering ERP implementation there is no fixed time or a defined start or stop which can be defined for the ERP implementation process. It solely depends on the ERP system, the Implementation partner, based on the business, the level of customization needed, the add-ons and the third-party solutions that should be interconnected with the ERP solution, and many other factors that matter in considering the time of the implementation process.
In general, a mid-sized ERP system implemented for a business with an average level of customization and operational configuration will be around 4 to 6 months.
Going Live and Beyond the Development
Once the burden and the stress of going live have been completed the business as well as the implementation partner’s managers should analyze the impact of the ERP on the functioning of the business. The various aspects which can be analyzed are:
- Has it reduced manual operations and automated repetitive tasks
- Has it brought greater visibility and insight into the various aspects of the business
- In terms of finances and productivity, what’s the average increase in revenue and the increase in employee productivity should be analyzed
ERP implementation is a big process considering the large and multinational organizations which can go anywhere from a year to over 2 years where each and every aspect can be completely migrated to the new platform. In the case of small and medium-scale industries, the ERP implementation time taken will be between 4 to 6 months.
The process of ERP implementation is a continuing process where each upgrade and new elements are brought into the solutions for the betterment of the business management. One of the primary aspects which root the success of ERP implementation in a business is the selection of the right ERP and the implementation partner who can support the business throughout.