Your enterprise management and accounting system, generally known as an ERP (enterprise resource planning) system, is pivotal to the efficient operation of your enterprise, from routine transaction processing via to the technology of informative management information.
Most ERP systems have an anticipated lifetime of between five and ten years, however, your enterprise’s development and expansion might necessitate a change in ERP software within this timeframe.
If you’re embarking on a project to change your ERP system listed here are ten best practices to assist you havea clean transition:
1. Supplier selection
Your selection of ERP software and provider is going to have the most effect on the result of your ERP project. Selecting an ERP product that is a comfortable match for your enterprise and that represents a marked improvement on the previous legacy system, will create a positive and enabling atmosphere throughout your enterprise.
As important to the selection of software is creating a strong and trusting relationship together with your ERP provider, particularly if the provider goes to present key members of the project group. It is important you could belief your supplier to roll up their sleeves and assist to ensure the project is rolled out on time.
2. ERP consulting
It may be necessary for you to recruit a dedicated ERP consultant on a short-term contract, or use a consulting group to assist manage the project.
This will depend upon the in-house resources you’ve at your disposal, plus the size of your ERP project when it comes to its overall scope, and the variety of customers being implemented at one time.
Factors similar to the provision of a devoted project manager and former ERP implementation expertise will govern whether external resources are required. If exterior resources are essential then as much care needs to be taken of their selection, as was the case with the ERP supplier.
The success of the ERP implementation depends upon a cooperative and seamless working relationship.
3. Project management plan
Benjamin Franklin’s old adage, “If you fail to plan, you are planning to fail,” isn’t more true than in ERP implementation projects. It is crucially important to create a detailed project plan that paperwork your team’s roles and obligations so that everybody knows what is predicted of them.
The project plan should embrace a breakdown of the primary milestones with a detailed list of the duties to be accomplished. The plan ought to be stored as up-to-date as possible by recording the progress made on every activity.
This data needs to be routinely communicated to all group members so everybody is aware of what’s happening and points could be resolved in a timely manner.
4. Business process mapping
At the outset you must carry out a detailed analysis of your current business processes, after which map them towards the new ERP system.
The success of the ERP implementation is dependent upon a cooperative and seamless working relationship
Should streamlining or efficiencies be attainable, or if adjustments to processes are necessary, then these needs to be authorised by management well beforehand.
5. Change management
Effective change management is important to the success of this kind of project. Enlighten those that might be affected by explaining the importance of the project, how they are going to be affected by it, and what you anticipate them to contribute towards the project’s success.
Lastly, you should frequently update everyone on the project’s progress, and repeatedly remind them of their roles and duties.
6. Data migration
Data migration is an important part of any ERP implementation project. It is important to be smart and realistic in regards to the amount of transaction historical past you need to carry ahead into the new ERP system.
A great suggestion is to migrate the minimum amount of transaction history required to ship congruent data comparisons or practical data inquiries.
An ERP implementation project typically involves the merging of multiple disparate management programs with their very own silos of information into a single integrated solution, so avoid underestimating the extent of problem and the amount of work required to clear and merge duplicated information records.
It is recommended that a minimum of two full data migrations needs to be undertaken to create pilot programs for data review, system checking and employees training purposes.
7. Commitment to the project
The probabilities of your ERP implementation project being successful are drastically improved when everyone sees the project is being enthusiastically supported from the administrators downwards.
The fear of change within an organisation is the principle reason for problems for an ERP implementation project. Typically, this might be most prevalent within departments who’ve developed personalised administration programs and who’re very blinkered, that means they could be less doubtless to purchase into the brand new integrated enterprise vision.
Assembling probably the most talented and respected team possible will give the project the best chance of being a success.
8. Training and testing
Having created a pilot ERP system using data migrated from the incumbent enterprise management solutions, a detailed staff training timetable needs to be outlined based mostly upon person roles and obligations.
Ensure customers are skilled on their each day working processes they usually have time to apply on the pilot system prior to going reside.
An ERP implementation project typically includes the merging of multiple disparate administration systems with their personal silos of data into a single integrated solution
It is useful if every department has a designated ‘super user’ who has a much more in-depth understanding of how the system works; these customers will be responsible for aiding others within their division, helping with system testing and monitoring fault resolution.
9. Monitor the budget
ERP implementation projects are infamous for chronic project creep and serious cost overruns, which may inevitably be off-putting. To avoid price will increase, be clear about what’s within the scope of the venture and any extra out of scope tasks.
Manage out of scope duties as separate sub-projects and apply for his or her funding discretely so they don’t contribute to price overruns on the principle project.
Make sure you routinely monitor the precise project costs towards the unique budget and hold project sponsors informed of the on-going financial position.
10. Define project success
Before going live it’s important to capture the project sponsors’ expectations of what’s deemed project success. This may include simple statements similar to: “ERP goes live without any significant business disruption or adverse impact on customers” or “No production downtime due to material supply” or different more complicated metrics related to your organisation.
ERP implementation projects are extremely difficult and usually fairly tense for all concerned. Thankfully, by adhering to these finest practices throughout your ERP implementation, you’ll be able to greatly mitigate the related risks, leading to a successful project.
