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9 Best Practices for Implementing ERP

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9 Key ERP Implementation Best Practices

Implementing an enterprise resource planning (ERP) system is a big step for any organisation. ERP software supports an organisation’s primary business processes, such as accounting, budgeting, inventory management, supply chain management, order processing, human resources and payroll.

Because an ERP implementation is a major project with a broad impact, it’s important to follow best practices throughout each phase of the process to make sure the ERP deployment proceeds smoothly, and to ensure that you get the most benefit from the system.

These best practices cover each major ERP implementation stage, from defining requirements to training and providing support. As you work your way through your implementation checklist, they can help ensure that your ERP implementation meets your business goals, minimises the risk of delays and cost overruns, and enables employees to use the system effectively. Read the full article from Oracle NetSuite here.

1. Project Team

Establishing a strong project team is critical. Typically, an ERP implementation team includes an executive sponsor, a project manager and representatives of key business groups involved in the project. Having an executive sponsor who can adjust business priorities and pull in additional resources when needed is vital to success.

2. Key Requirements

In any ERP project, it’s vital to establish clear requirements, which should be linked to your business goals. Those goals might, for example, include automating processes to save time and reduce costs, improving your ability to respond to customers and enabling better analysis across the business.

 

 

3. KPIs

With an understanding of key requirements, it’s possible to identify specific KPIs. These KPIs can represent targets to measure the success of your ERP implementation. For example, a manufacturer might want to improve cycle time, inventory turns, demand forecast accuracy, order backlogs, costs and downtime. 

4. Project Management

An ERP implementation can take three months up to a year or more in big companies. It’s important to establish a project management framework that will guide your ERP deployment to success over the entire implementation period. At a high level, project management should focus on aligning the ERP initiative with business needs, keeping the project on track, and ensuring that key senior managers and other stakeholders are able to provide input.

5. Collaboration and Communication

Successful projects revolve around building a mutual understanding of the goals and objectives of the ERP implementation. It’s crucial for everyone—from the CEO to end users—to be in sync. Everyone needs a clear understanding of why the company is implementing the ERP system, what the system will do, the benefits it will bring and what to expect during the ERP implementation process.

6. Data Mitigation

Migrating data to the ERP system is a critical step in the implementation, and one that requires careful preparation and planning. With any migration, there’s a risk of losing or corrupting data, especially if you are consolidating and standardising data from a variety of different applications.

7. Training 

It’s unrealistic to expect that workers will immediately be proficient with the new ERP system. Targeted, ongoing training that matches the needs of different groups and roles can help users accept the system and get the most benefit from it.

 

 

8. Support

A go-live date is a reason to celebrate. But once people begin using the system, it’s more than likely they can come across issues and begin asking questions. It’s wise to prepare by providing several resources. 

9. End-user Feedback

Gathering end-user feedback can be extremely useful throughout the entire implementation process. In the early stages, it can help you gain deeper insights into how people work, how they interact with other employees and customers, and the obstacles they face daily. 

Depending on your organisation’s needs and budget, you’ll likely have a variety of ERP systems to choose from, including cloud-based and on-premises solutions. Many organisations select cloud-based ERP systems, which can be easier and faster to implement and don’t require capital investment in hardware.

Looking for more help with ERP implementation? Let us know.

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