Key Components for ERP Implementation Which Can Change the Pace of Business

What Is ERP Implementation?

The term ERP software is used frequently in companies. Many people believe that it is even the central tool of the IS (Information System). But what is it concretely?

The acronym ERP stands for "Enterprise Resource Planning."

It is a computer system that displays an end-to-end service. It is capable of managing and monitoring all the information related to the main operational processes of a company.

Its services range from order management to invoicing to managing each accounting entry and commercial management or planning. But that is not everything.

Therefore, an ERP is software used by all departments, which allows the standardization of existing solutions in the company. The main characteristics of an ERP are:

• A modular approach
• Communication of the different modules
• A single database

What does It Mean to Have an ERP?

The ERP is intended to be the key piece within the company's information system. It implies providing all areas of the company with interactive management in all its actions:

• Financial management
• Production management
• Sales management

What Are The Main Advantages of ERP Software?

First of all, it is a single software that integrates different business processes. That means we are using a single data source shared among all departments. It will create a marked improvement in data quality, reducing redundancies and human errors.

Using and sharing such a system also brings advantages at the management level. Successful implementation of ERP will optimize and speed up the flow of information within the software.

Another significant advantage is flexibility. It is much easier to modify a single system than heterogeneous systems and reintegrate them.

Here are the main advantages:

Centralization

In an ERP system, all the departments of an institute are organized beautifully. Different modules interact with each other and streamline workflows.

A centralized database supports this interaction, from which all applications retrieve information. Thus, all users of the system access and work on the same data. Finally, you can avoid redundancies, inconsistencies, or entering the same data several times.

Optimization of management at the macro level

It is the most important of all the advantages of an ERP system. The fundamental objective of this software is to update the processes. These developments are executed within the productive and administrative structure of the organization.

Proof of this is that 95% of the companies that implemented ERP obtained improvements in their workflows.

Read Also: History of Progressive Evolution of ERP Systems Till Now

Adaptability and scalability

When implementing an ERP in a company, we lay the foundations for sustained growth. That is because we acquire a solution capable of adapting to the specific needs of each organization.

In this sense, one of the greatest advantages of an ERP system is adaptability. We can add modules depending on the requirements of the company.

For example, for an SME, the Accounting and Salary module will probably suffice. However, as it grows, it will have to optimize its management with clients. And then, the adoption of a CRM may be necessary.

Real-time information and greater support in decision-making

The data captured in an ERP system is updated in real-time. For example, suppose a sale is posted in the store, and an invoice is generated. Then the change is immediately reflected in inventory and accounting.

Consequently, the information we access is always accurate. We can use it at any time to speed up strategic decision-making.

Security

Having all the information centralized in one place allows us to have greater control and supervision of data manipulation.

In addition, the system gives us the possibility of personalizing access. It also enables us to delegate responsibilities and work collaboratively without risks for the organization.

These systems also allow us to:

• Make continuous backups of the information
• Access history and record of each movement
• Know what each user does with the information.

In short, these are the advantages prismERP, an increasingly affordable solution, offers to all types of companies.

ERP Implementation Plan: Key Phases

Implementing an ERP requires completing a few phases with particular abilities.

The following are the phases that an ERP implementation process should have.

Planning

Planning has to be the origin of everything. And the success of the implementation project depends on its correct approach. The company's top management's involvement in the change process is essential.

It is usually the phase in which most companies want to move as quickly as possible. Setting a generous amount of time is the key to moving from a bumpy process to a smooth and successful one.

Consultancy

The study of the needs is the first task that the consultants will carry out. They will identify the functionalities that your company needs are. In simple words, the final result of this phase will be to find an ideal solution fit for the company.

Carrying out this process correctly will allow us to:

• Greater integration of the operations and areas of the organization.
• Obtain an ERP that meets and adjusts to our needs.
• Optimize the implementation stages.
• Get better ERP performance data.

Parameterization

They will carry out the hardware and software installation during the parameterization process.

Parameterization is the key phase to adapt ERP to business needs and workflows. Another key factor is the type of ERP that has been selected:

• ERP on-premise
• ERP cloud (installation on computers outside the organization).

Testing

The testing phase consists of simulating in the most realistic way possible. You should do it with real customer data migrated from their previous system.

These phases are typically run in a sandbox or sandbox environment. In such cases, you can handle fault and correct it properly. The heads of the different departments carry out these tests.

The testing phase is completed when it has been verified that the processes are developing satisfactorily. This phase will result in the correct communication flow between the different departments.

Migration

The other big step that occurs in ERP implementation is data migration. Selecting and identifying data is one of the most important measures. There is a tendency to migrate all the information, but such action is necessary.

This process can help the company to select the relevant information and data. It will allow them to discard those data that are no longer in use.

Training

Staff training is perhaps the most crucial process in any ERP implementation. Before initiating, the management will inform staff about the changes.

It is essential to convey to employees that the new system is very intuitive. It will considerably improve their quality of work life. Also, inform that they will receive all the training they need to make proper use of it.

Start

This is the last phase of the implementation of an ERP. The team can now use the solution, always guided by the team that carried out the execution. The ERP is put into operation in this phase, and user support begins.

Verification of the new system

After the implementation, there usually comes a period where a follow-up is a must. Maintenance service is contracted with the ERP partner. This is because if there are any doubts, updates, or errors, they can solve.

New functionalities

Now that the new system has been running for a while, it is time to address the possible changes you need. This is where you can finish fine-tuning the new tool to the organization's needs.

This phase never really ends since companies are constantly changing in an increasingly changing world. Normally, you need to incorporate new technologies and functionalities.

ERP Implementation Plan: Best Practices

Successful ERP is not only about implementation but also carrying it out correctly. The whole process may seem complex and tedious, but a few tricks can make it easy for you.

Here are the best practices you may follow:

The importance of key performance indicators

When implementing your ERP software, it is essential to emphasize key performance indicators. These allow you to quantify your performance and compare it to your objectives. An ERP must also let you know if the measures taken are effective for your company.

Benchmark your current processes

Before implementing your software, take stock of your current processes. In this way, you will understand which configuration parameters to implement within your new software.

This is crucial to achieving your goals. This step is necessary to maximize the software's default templates and configurations.

Minimal customization

Try as much as possible to trust the process parameters defined by your implementation project manager. Of course, your company will need to define its parameters intended for strategic activities and processes.

However, it is necessary to keep the existing settings to maintain optimal performance.

Find the ERP adapted to the business and the size of the company

You will only minimize the difficulties you encounter in the implementation by choosing the right solution. Choose an ERP solution designed to meet the challenges and needs of your industrial business. Make sure it is adapted to your business size.

Small ERP solutions: They are often pre-configured and faster to deploy. They generally have a relatively large functional scope but manage standard and not very adaptable processes.

"Mid-market" solutions: They are functionally more extensive and more adaptable. But they require more settings during the project phase. However, they are still much more accessible to customize than ERP designed for large companies.

To make the right choice, take a close look at the functionalities of the solutions you are putting in the competition. Check that the functionalities you are looking for are present. And conversely, the functional scope should not be disproportionate.

Also, ask the editors about the possibilities of customization. The editors must lend their support in the deployment and configuration of the solution.

Hire an experienced ERP consultant

An ERP consultant will always be of crucial help in your project implementation and even later. From planning to implementing ERP software, they will be a strategic partner. They will also be able to provide you with their expertise-

• For The Selection Of Future Software
• For Support and
• For any other implementation initiative to come.

Set up a communication plan

This step is crucial during the implementation of a new digital tool. A communication plan allows your employees to feel concerned about the project.

But it also helps reassure them about using a tool that is unknown to them. Such a plan makes it possible to overcome the resistance to change that could inhabit future users of ERP software.

Designate a project ambassador

As part of the communication plan around the new software implementation project, appoint an ambassador. They must be trained in the operation of ERP. This will make it possible to explain its advantages to colleagues. They will also guide their peers in the optimal use of the new software.

Regular holding of strategic meetings

Just as it is necessary to set up a communication plan, regularly hold strategic meetings. Such meetings make it possible to inquire about user feedback. And this will result in detecting points of satisfaction and potential areas for improvement.

Identify experienced users

It is also necessary to identify experienced users. They will be the spearhead of your new change project. They will represent strategic partners on which your ERP software's proper functioning will be based.

Further, they can quickly detect bugs and suggest improvements. And above all, test the new version of your software before final implementation.

Conduct pilot projects

Before implementing ERP, it is necessary to carry out a test phase through various pilot projects. These projects will make it possible to detect anomalies and correct them if necessary. They will also allow your employees to familiarize themselves with the new software.

Celebrate and encourage success

You should applaud and encourage success in a business. Such an approach is motivating for your employees and encourages team spirit. It will then reward users who are the most adaptive and less resistant to change.

Final Words

Before marching forward with an ERP implementation plan, consider many features. It is important to deepen the topic and understand what an ERP is and how it works.

• Nonetheless, it is essential to remember that no single ERP can meet everyone's needs. Getting informed, asking the right questions to the technology partner, and focusing on your needs is the only way to make the right decision.