What is an ERP Implementation? 

In this ever-evolving business landscape, mastering Enterprise Resource Planning (ERP) implementation is vital for efficiency.  

This blog breaks down the ins and outs of ERP implementation, highlighting the importance of project planning when implementing ERP and tackling potential issues. We explore key aspects, providing practical insights to empower your business. From smoother operations to improved teamwork, unlock the power of your ERP with an ERP implementation plan using our straightforward guide. 

Join us for a quick and easy exploration that equips you with the know-how to maximise ERP systems and propel your organisation toward lasting success. 

So, to start, do you have the right team in place to execute the implementation of your ERP (Enterprise Resource Planning) Solution? Do you have ERP consultants, both functional, technical, and business experts to take you through the whole ERP implementation life cycle?  

Since your ERP will touch every aspect of your business, approaching the implementation with the right team and the right methodology is essential to ensure all phases of the ERP project are planned, prepared, documented, and tested.  Locating and assigning the right team should be part of the ERP implementation planning to ensure the right resources are in place.

It is always valuable to ensure you find the right business partner, such as a valued Infor ERP Premier Delivery Partner to assist you every step of the way.

This is the step-by-step process and sequence of activities that ensures all the T’s are crossed and the I’s are dotted. A methodology is the way to organise thoughts, capture responsibilities and hold every task and person to account from start to finish. Another way to look at this, is the way to plan the project, the people, the processes and the systems. It is rare that an ERP implementation will be performed on a blank page, (i.e., the business has no other incumbent systems or software in place). Therefore, you will need to consider and accommodate existing systems and other business critical activities that need to continue to run smoothly during the implementation of the ERP. So, the methodology and ERP Implementation plan needs to consider business continuity and integration from a technical and business perspective.   

The most common ERP implementation methodologies are Waterfall, Agile and Hybrid. 

• Waterfall ERP Implementation – this is the traditional approach where phase two starts on completion of phase one, and so forth. 
• Agile ERP Implementation – this is the approach that is often taken when developing software, as the work phases are performed in parallel and the approach is more flexible.  
• Hybrid – no surprises here but this combines, in principle, the best of both of the above.  

What are the major steps or phases or an ERP Implementation – the phases are similar no matter what the approach with standard titles such as:  

1. Analysis and selection of ERP system 
2. Procurement and licensing ERP system  
3. Installing and baselining ERP system  
4. Customisations and tailoring (depending on capability with ERP solution)  
5. Data planning, formatting, integrity and transfer 
6. Business Process mapping with ERP  
7. User access and user privileges or roles  
8. Testing and go live phases  

With any implementation project the plan is of utmost importance. Like a carpenter; measure thrice, cut once.  

Once the blade has cut the plank in two, there is simply no sticking it back together again. That doesn’t mean you can’t moderate, flex, and adjust as you go, but the goals need to be in place and the process to achieve that must be locked down. Adjustments along the way are inevitable, but a meticulous and granular plan will be the reference to which you return each time any iterations or modifications required.  

Communications are probably the next most important aspect of any implementation and project plan to ensure everyone has the information they need in a timely way. Setting up a regular rhythm of communications to all stakeholders and all those involved will ensure that no one is left asking “so what next”. Documenting these comms sessions is equally important so you can refer back and use as a reference point as to who said what and when. This is not to catch people out, but to hold them accountable which may seem like the same thing, but it’s not, as it allows people to ensure they have achieved what they said they would, or have any exceptions and barriers to completion recorded. This enables the project lead to act to resolve issues, rather than be caught out unawares.  

Implementing an ERP system will involve many teams who will have opinions and issues of their own and they all need to be considered when scheduling. Not providing enough time for core teams to review components that affect their daily business lives will cause friction. The review and QC (quality control) process is as important as the technical aspects and should be given equal weight.  

How long is a piece of string, is the frequent response to the question of “how much will it cost,” or “how long will it take to implement my ERP system?”  Using project management tools and methodologies will help build sufficient time for planning, implementing, technical testing, user testing, issue resolution, and map that against other dependencies to form a realistic timeline.  This helps to build a cost plan that is realistic. 

So, how do you know if the quote you have is reasonable – seek comparisons is the sensible approach. 

The scope of work should set out all the prime considerations, parameters and requirements, such as, number of modules, degree of bespoke or custom work, number of users, integration points and if deployment is to be in the cloud or on-premise. There is such a degree of variation that will dictate the scope, it is hard to compare one ERP implementation to another as each business is different, so too is their implementation requirements.  

Every decision has a cost implication and don’t forget the hidden costs such as data migration, change management, training and the time it will take the team to learn any new system. Bringing in professionals can appear expensive, but they are used to these types of projects and so may only take a few hours to do a task which will take your internal team a day to complete, so contract professionals can be a cost effective way of achieving results.  

And remember you can capitalize your implementation costs, (both the license as well as development costs of other project related costs), allowing you to depreciate the expense over a longer period of time and delaying the recognition of the expense.  This just relies on correctly referencing any expense of the ERP system implementation and system definitions. 

As already described, the project plan should be the baseline for all good ERP implementations. 

Scope creep is a common issue and this arises when the statement of work has not been thoroughly and painstakingly documented and recorded, with the project plan describing each activity.  

Data would be the most likely second problem as the scale of the task to cleanse and align the data is frequently underestimated. Over time any data set is likely to erode in terms of its currency and accuracy, so any business that has been running for some years will have inaccuracies. But these are rarely considered fully when planning each phase of the implantation and data should be front and center of every ERP implementation.  Data will be found in disparate legacy systems and will need work to ensure what “data goes in” to a new ERP implementation is quality data to ensure that the “insights out” are real and valuable. Assigning a data specialist early on in any project will potentially safeguard against this being the issues that holds back a timely delivery of the new ERP implementation.  

The implications of the change to the business needs to be incorporated into the project plan. Change management needs to consider all users and how the change (the end goal and the disruption in between), will affect the way they work and the time it will take them to learn the new systems and work as efficiently as possible. Business disruption is a frequent barrier to change and transformation, but when managed properly, the new solution can bring radical new efficiencies not be underestimated.  

Any complex project needs a methodology and a plan, be that an ERP implementation or any transformation project will multiple moving parts. Projects fail if the plan is not thorough, considered, meticulous and accurate so that it can hold everyone accountable to the goals and timing. But with the right plan and most importantly, the right people to drive the plan, the business should function and thrive even during the ERP implementation and certainly afterwards when new efficiencies come into play from the new solution.  

Never underestimate the value of bringing in professionals who do this day in, day out.

To that end, here at ReInforce Technology, we can helicopter in a talented team who know how to manage these complex projects. They have done it before and know the pitfalls and traps.

So let us be your secret weapon and professional project team to help with a smooth ERP Implementation we have the skills and are trusted Infor Premier partners.