Prepare your business for success by crafting a solid plan, assembling a dedicated team, and identifying key performance indicators for your ERP implementation.
When assessing ERP systems, the implementation process should be a top priority. In the past, ERP systems typically needed extensive customisation, leading to programmers spending significant time assisting with the implementation. Some vendors still offer systems that require heavy customisation.
On the other hand, certain vendors take a different approach to ERP implementation. For instance, NetSuite incorporates industry-specific best practices for companies of your size directly into the system's design. This streamlined approach makes it easier to customise the software to meet your business's unique needs, ultimately reducing the time and costs associated with implementation. While you may have experience with implementations in the past, this approach will revolutionise your process.
Even with the right vendor and system in place, successful ERP implementation demands meticulous planning, flawless execution, and thorough follow-up.
Exploring the 7 Phases of ERP Implementation
1. Discovery and Planning
The initial phase of implementation begins by pinpointing the ideal system that aligns with your specific functional requirements and business objectives. Engage with vendors to inquire about speaking with satisfied customers and delve into the details of the vendor's support throughout the implementation process. Collaborating with your ERP implementation team, proceed to send out RFPs to leading contenders and carefully choose the system that best suits your needs.
2. Design
After selecting your system, delve into a detailed exploration of your current processes and workflows. Brainstorm innovative ways to enhance or automate these processes using the new ERP software. Many organisations opt to kickstart their implementation with accounting and financial functions, as they form the foundation of any business, before progressing to other departments - keep this sequential approach in mind when evaluating different implementation strategies. Seek input from users on potential improvements that will have a meaningful impact, ensuring that your proposed solutions align with their needs. Identify necessary configurations, such as integrating with other systems or streamlining specific workflows, and assess whether customisations, involving coding, are required. While this phase may be time-intensive, it is instrumental in unlocking the full potential of the system.
3. Implementation & Development
Now is the time to turn these plans into reality. During this phase, you will collaborate with system experts to configure and potentially customise the software to meet your specific processes. They will also establish integrations with other systems, a task made quicker and simpler with cloud ERP systems that offer connectors designed for seamless linking of various solutions. This is also an opportune moment to begin crafting business-specific user manuals and training materials for the new system.
Data migration becomes the focus in the next stage. The team will strategise the transfer of data from the old system to the new one, involving tasks like identifying, cleaning, mapping, and validating the data. While this process can be intricate and time-consuming, it is essential not to rush through it. Consider importing certain data, such as financial records, now and leaving other data for later, ensuring that no valuable information is lost and can be utilised effectively in the future.
5. Testing
Testing is a crucial phase that should be integrated as the implementation progresses. Observing how different features operate as they are implemented can provide valuable insights for future development and help prevent recurring errors. This stage also marks the beginning of user training. Utilise resources from the vendor along with the tailored training materials you have prepared specifically for your company.
6. Go-Live!
As the much-anticipated go-live day arrives, expect a few bumps along the way. However, with meticulous planning and thorough testing, you can mitigate any major issues that may arise. It may also be necessary to transition some recent data during this phase. Emphasise ongoing training to promote the seamless adoption of the new system and ensure that the project team is readily available to address any questions or concerns that may arise.
7. On-Going Support and Updates
During the initial weeks or months post-implementation, the dedicated team will continue to provide essential training and troubleshooting support. They will offer guidance on configurations and adjustments as you navigate the intricacies of managing new and evolving processes within the system.
What’s the Budget?
Avoiding the dreaded conversation with executives about a project going over budget is crucial. Therefore, it's essential to set realistic expectations from the beginning. When it comes to implementation costs, they can be categorised into three main buckets:
Technical costs encompass expenses related to licensing, hardware, support, hosting, and customisation.
Workforce costs include project management, consulting, training, and other change management expenditures.
Data migration involves the intricate process of extracting, cleaning, validating, and transferring data from one system to another, requiring significant effort and financial resources.
Though costs vary based on business size and project complexity, plan to spend at least 1% of your annual operating budget on the implementation. And know that an on-premises ERP system will have a much higher upfront costs than a cloud offering.
Key Roles on Your ERP Implementation Team
Having the right team members is crucial for a successful implementation. Look for a diverse group that can dedicate most of their time to the project throughout its duration. While your implementation partner may handle some responsibilities, the more they do, the higher the cost. This, coupled with the fact that your employees know your business inside out, is why most companies opt for a skilled internal implementation team.
- Executive Sponsor: A seasoned professional holding a C-suite or VP position should serve as the project's internal advocate. This key individual possesses the authority to make critical decisions, such as approving scope expansions or customisations that may deviate from the initial plan, based on business requirements and input from the implementation team members.
- Project manager: Serving as the primary liaison with the vendor, this individual is responsible for the day-to-day coordination of the implementation process. Their tasks range from organising demonstrations to strategising business workflows, keeping in constant communication with team members, and providing timely updates to the executive sponsor.
- End users play a vital role in the implementation process, as they are the ones who will heavily utilise the system. Their insights into essential workflows for their departments and potential challenges are invaluable. Seek out individuals who excel in communication, can rally support from their peers, and have a keen interest in understanding the intricacies of the system's operations.
- Experts in various functional areas, such as finance, IT, and supply chain, bring a deep understanding of business systems to the table. Their expertise enables them to identify how the system can streamline processes and the necessary steps to achieve optimisation. Consider organising them based on key functions like order-to-cash, record-to-report, and procure-to-pay. Additionally, a member from this group could transition into the role of system administrator, often starting as a part-time responsibility before evolving into a full-time position.
In conclusion, successful ERP implementation is a critical step towards business success. By following the 7 phases of implementation, carefully managing costs, and assembling the right team, you can ensure a smooth transition to a new system.
With NetSuite SuiteSuccess offering a streamlined approach and industry-specific best practices, you can discover a better implementation model with faster time to value. So, take the necessary steps, plan meticulously, and engage with the right vendors to unlock the full potential of your ERP system.
