While numerous ERP implementation failures exist, there are also plenty of success stories backed by valuable statistics. To ensure a smooth process and evade failure, a well-structured strategy is essential.
How to develop an ERP strategy?
Implementing ERP systems is a complex task, and devising a well-structured strategy demands considerable effort. However, the time invested upfront can lead to significant time savings throughout the project.
Developing a strategy involves several key stages:
Stage 1: Team
First and foremost, it’s crucial to recognize that the project involves more than just the IT department. The team should comprise technical leaders, consultants, and employees from the department where the new ERP system will be implemented. The project core team should include employees from various position who possess a solid understanding of the project.
Stage 2: Vision
It’s important for the team to establish a clear vision of the future, where the company will be in 5-10 years and the role the ERP system will play in the company’s overall strategy. The team must carefully evaluate the current state of the company and strategically outline the steps necessary to bring their vision to fruition. It should also be determined how long the implementation will take, identify the impacted departments within the company, specify the required functionality, and select the ERP system that aligns best with the business requirements.
Stage 3: Change management plan
The team should prepare a change management plan in advance and, if necessary, explain to the employees why the changes are necessary. It’s important to recognize that these changes will impact the company’s culture. Old practices will be replaced by new processes and technologies. Employees will require robust support to adapt to the new workflow.
Stage 4: Identifying, documenting, and detailing processes
Illustrate how the new processes will function for each department and end user. This may involve crafting a visual representation of the workflow and plotting the data to provide a comprehensive view for all stakeholders. Get feedback from the end user, it will help them engage. Their contributions are invaluable too, as a better understanding of current work processes and related issues can help you focus on points you may have overlooked.
Stage 5: Development
In fact, the implementation of ERP in any company requires customization of the functionality. Customization means changing the software and adapting it to the unique business process of this or that department, and this requires programming.
Stage 6: Transfer data
This process can be quite difficult as it requires a lot of effort to process the data in the format required by the new ERP system. In numerous instances, the transfer involves migrating several years’ worth of data from one system to another. These datasets encompass the complete transaction history of the company’s LLC department, underscoring the critical importance of their accurate processing.
Stage 7: Testing
This phase is required before the system can be launched. It is important not to miss issues such as system defects or data problems. Also check with the customer how satisfied they are with the functionality and whether it responds to real business processes or not. Often the functionality does not match the process in the real environment and needs to be done from scratch.
Stage 8: Training
Training sessions are essential for users to grasp the system’s functionalities and advantages. This phase is necessary so that end users can fully understand the new functionality and put it into practice. Given that individuals have varying learning styles and capabilities, it’s important to employ diverse training methods. This may include videos, written materials, and in-person sessions to cater to different preferences and needs.
Stage 9: Deployment
The launch of the ERP system can happen simultaneously, gradually, or running together with the old system. Gradual transition is the most justified of them, since at this time only part of the software is working. This allows you to test its functionality before moving on to another part. It involves less risk, but takes a relatively long time.
Stage 10: Support and maintenance
After ERP system implementation, continuous technical support and services become essential. Support involves identifying system errors and promptly correcting them.
Create a strong strategy and stick to it
Successfully implementing an ERP system can optimize your business operations and give you a competitive edge. By fully automating your LLC’s operations, you’ll gain access to processed information on business operations, providing crucial insights for decision-making.
