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How to plan and execute ERP implementation effectively?

How to plan and execute ERP implementation effectively?

Enterprise resource planning has tremendous benefits and business values to offer undoubtedly, on the other hand, there are equally potential obstacles and risks associated with any ERP project. The chances of failing to meet the project expectations are extremely high in the enterprise software implementations, including the cost, duration and the intended benefits associated. The reasons are, but not limited to time, money, human capital or proper external consulting supports and many more. Planning for a change, incomplete testing, or appropriate training also could be the main causes for low success in ERP implementations. Of course, when done correctly, ERP implementation can act as a foundation for improved productivity, growth, and significant revenue profits.

Although ERP consultants swear by the various methodologies set by the customers or ERP vendors, there is a transformation needed in that too, to ensure that the ERP deployments are successful and useful for businesses. In this article, we will discuss a few simple pointers to plan and improve execution of ERP implementation.

planning and executing an ERP implementation

Plan effectively

It is crucial to have a proper plan in place for a smooth sailing process during ERP implementation, which helps in crystallizing objectives and ensuring to have a productive usage of resources, reducing errors. Breaking down of project plan into constituent phases, deliverables, tasks, milestones, budgets and schedules is an essential aspect in ERP implementation. Since there is no customized approach, a proper analysis and research is inevitable to come up with a solution which is suitable in all aspects.

Choose the right tools

ERPs often are extensible and customizable, enabling you to use various plugins to add functionality and integration with other platforms and applications. There are numerous options and plugins available which can be readily integrated for increasing productivity and functionality, hence making it a versatile platform for business growth.

Focus on strong project management and staff resources

Before starting any ERP implementation analyze if you have the staff to carry out effective tasks towards completion. Workforce planning is a critical step towards meeting ERP goals. A complete assessment of the resources full-time/part-time must be in place before starting out the ERP implementation. Review the roles and skillsets based on the project requirements, and conduct a people-focused gap analysis based on existing resources. This will enable in weighing decisions to retain support skills in-house or outsourcing.

 Manage legacy applications

Maintaining your existing critical production systems until they are replaced by ERP systems, when necessary, is important too, as establishing a transition plan maximizes efficiency and business process improvements. Maintain the mission-critical systems until they are ultimately replaced by utilizing a vendor who offers the best-in-class reporting and incident management systems to track performances and validate cost savings. Ensure that before shutting down the application(s), you execute the strategies for data archiving and retrieving.

Select new ERP vendors wisely

Settling on an ERP solution is inevitable, but you must not forget to select new ERP vendors who can update solutions regularly and make running the processes a simpler task for you. Converse with experienced business professionals and consultants for making an easier decision for choosing an effective and productive ERP vendor, who comes easier for your pockets, and is instrumental in improving efficiency and a smooth ERP implementation.

Consider these best practices in mind to help you stay on right track and on a competitive edge. It’s an understood fact that researching the best ERP implementation for your business, building consensus around the effort, providing the support to your staff, and setting realistic expectations is in itself a challenge, but on a long time journey, these result in a more effective Enterprise resource planning experience and a business which is more efficient, competent and profitable.