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A Guide to ERP Implementation

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ERP implementation requires integrating data of all the departments of an organization to the software. To assimilate the data accurately, you need a highly efficient combination of software and hardware.

Stages of ERP Implementation

Initial Evaluation or Screening: Before ERP implementation the vendors should screen the needs of the buyers. If a company is facing problems in its functioning in any area, it should sort out its problems to get a sooth ERP implementation. The highest authority of an organization should define the various levels of security required in the enterprise resource planning software. User’s right should be defined and the company hierarchy is recognized. Generally, the employee, who has to operate the ERP, is given the rights to access all the modules of the enterprise resource planning.

Preparation for ERP Implementation: Before implementation, the vendor should make a plan for implementation. The vendor should include many factors in the implementation stage such as cost and time required for implementation. The need for third party involvement and security of the system should be considered. A projection of cost should be made by vendor and an evaluated report should be submitted. The report should also be provided to the client to make the process of implementation easy.

Project Planning: In the project planning stage, the planning for implementation is designed and the time schedule for completion of various stages of implementation is defined.



GAP Analysis: The implementation team should define the procedures followed by a company, which do not meet the standards of the ERP software. After making the GAP analysis the client decides to make a few changes in its functions to match the structure of the enterprise resource planning, to work as per the technology standard. If the clients do not want to changes their process, ERP customization option will come into the picture.

System Design or Re-design: The configuration of hardware required for the implementation of Enterprise resource planning system is defined and the client should be informed about total cost of the technology. Based on the inputs given by the client, the functions of ERP are structured to counterpart the client's function.

Business Process Reengineering: If a company buys ERP software, it will have to change job responsibilities of some of its staff and employees. Employee should be assigned job to work as per the functioning of the automated system and some companies may have to change their way of working as per the requirement of the technology. The changes in business processes should be done to increase the efficiency of the client.

Training: The client has to be trained to use technology in an efficient way. Training has to be given to the business managers and to the employees to use the software efficiently and easily.

Testing: Testing the ERP software with real working data in multiuser environment with restricted permissions are done after implementation of ERP software. The software is tested for proper functioning and overloads issues.

Post Implementation Phase: In the post implementation phase, the client gives feedback about the functioning of the software and the vendor tests the ERP software for its security and functioning.




Related Book
Class A ERP Implementation
Class A ERP Implementation
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This book helps organizations set the stage for maximum effectiveness of both Lean strategies and Six Sigma and establish disciplines as the prerequisite to success. It describes how Enterprise Resource Planning, Lean and Six Sigma can be combined to create the perfect environment for continuous improvement.

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