How to do an ERP Implementation_Part 1
Introduction
An ERP system combines several corporate operations such as financial management, human resources, sales, and manufacturing to provide benefits such as greater productivity and efficiency. ERP implementation refers to designing, configuring, and installing an ERP system. The procedure usually lasts a few months and is complicated since an ERP system supports and automates several operations.
To achieve a successful installation, the business must first carefully identify its requirements, establish how to restructure procedures to make use of the system, set up the ERP system to support those processes, and thoroughly test it before distributing it to users. Proper planning and an organized, staged implementation method are required to complete all of those procedures on time.
ERP Components
Before we can start thinking of the strategies and methodology for the ERP implementation, we first must know the components that will be a crucial part of the ERP implementation process itself. The following are the ERP components required for the implementation:
· Hardware: For development, testing, and production settings, an ERP system will require a substantial collection of servers. The following are the critical components of Hardware: Servers, Clients, Peripherals
· Software: A program is a set of operating manuals and logic that controls and directs computer hardware to accomplish its duties. The following are the key components of Software: System Software, Database Management System, Application Software
· People Resources: ERP systems will require the likes of the people who would use them, whether it be the End-users, IT specialists, or the project manager, to ensure the maintenance of the ERP when its implemented and in the process of implementation.
ERP Implementation Stages
ERP implementations are often divided into six primary stages, or phases, spread out across months—or, in some circumstances, years. The process should begin before you decide which product to purchase and should continue after the initial distribution of your selected system.
These stages may coincide and differ slightly based on the firm. However, in general, businesses will go this route.
· Planning and Discovery: The company forms a cross-functional project team to gather feedback on the requirements of various business units and the difficulties the ERP system must address. The team is responsible for developing a short list of suppliers, issuing requests for bids, selecting the ERP system, supervising the deployment, and ensuring that it fits the demands of various groups and is appropriately accepted. Don’t underestimate the importance of a robust ERP deployment plan.
· Design: The team examines existing workflows to see how they could alter with the new technology. Supervisors and business process managers in day-to-day operations must be open to changing how they execute jobs. Using that procedure, the team assesses which ERP capabilities are vital to the organization, how the Software may need to be customized or added modules to fit the demands of each business area, and which data to transfer to the new system.
· Development: The supplier or integration vendor collaborates with the team to set up the Software to meet business needs, as well as to produce training manuals and documentation and begin importing data in preparation for deployment.
· Testing: Test the system before going live. This should involve thorough analyses of how various staff will utilize the system. You may need to fine-tune to remedy problems discovered during testing, but this is preferable to having employees find issues after the system has gone live.
· Deployment: Go live when you’ve finished configuring, migrating data, and testing! But don’t rejoice just yet: Unless your employees utilize the technology entirely in their daily tasks, the organization will not see a total return on that investment. Prioritize training and think about hiring “evangelists” in each area. These users are priceless peer resources.
· Support: The project team ensures that users receive the assistance they require, and it continues to enhance the system and address problems as they arise. If you choose an on-premises ERP system, you will need IT staff devoted to security, patching, maintenance, and problem resolution.
References:
https://www.netsuite.com/portal/resource/articles/erp/erp-implementation-phases.shtml https://www.netsuite.com/portal/resource/articles/erp/erp-implementation-strategies.shtml
Enterprise Systems for Management second edition (2014) Luvai F. Motiwalla; Jeff Thompson Pearson Education Limited, England ISBN: 978-1-29202-348-9 Chapter 5
R. Kelly Rainer, Brad Prince, Casey G. Cegielski. (2020). Introduction to Information Systems, 5th Edition International Student Version. 05. John Willey & Sons, Inc, Chapter 13