ERP system implementation: The 4 major steps

Most ERP practitioners use some version of the steps below to structure their ERP implementation:

1. Getting approval

The first step is to get approval to spend money and direct staff to implement the ERP system. The executives oversee the creation of any documentation required for approval. This document, usually called a business case, typically includes the following:

?Problem definition;

?Description of objectives and scope;

?Assumptions;

?Implementation costs;

?Implementation schedule;

?Development and operational risks;

?Projected benefits.

Once the business case is complete, the GM or senior executives should authorize ERP system implementation to proceed.

2. Plan the program

The high-level time line created for the business case must be refined into a more complete work plan. The following steps need to be completed:

?Finalize team members. Key internal individuals should be identified by name. Other required staff should be identified by role. External partners need to be selected. Typical partners include: ERP implementation specialists, organization change management specialists and technical specialists;

?Complete contracts. Contracts for new software, technology, and services should be finalized;

?Plan infrastructure upgrades. On-premises ERP systems frequently require faster processors, additional storage, and improved communications. Some organizations can minimize infrastructure upgrades by using a cloud ERP. But even cloud ERPs can require infrastructure upgrades;

?Create a work plan and timeline. Tasks, dependencies, resources, and timing need to be made as specific as possible.

3. Configure software.

This is the largest and most difficult phase. The major steps include:

?Analyze gaps. Understanding the gaps in current business processes and supporting applications helps the project team determine how to change business processes to conform to the software;

?Configure parameters. Parameters in the ERP software are set to reflect the new business processes;

?Complete required programming. Ideally, no changes are needed for the ERP software. However, some programming may be required for interfaces to other systems or for data migration;

?Migrate data. The team standardizes data definitions and examines existing files for data completeness, quality, and redundancy. Finally, existing data is cleansed and migrated to the new ERP;

?Test system. The system is tested to ensure it delivers the needed functionality and required responsiveness;

?Document system. Required functional and technical documentation is created. Typically, the vendor has documentation that can be tailored to enterprise standards.

?Upgrade infrastructure. Complete any required upgrades.

4. Deploy the system

Prior to the final cutover when the new system is in production, multiple activities have to be completed. These include;

?Train staff. All staff need to be trained to operate the system and be given access rights;

?Plan support. A support team will be needed to answer questions and resolve problems after the ERP is operational;

?Test the system. The new system must be thoroughly tested to ensure it is secure, responsive, and delivers the functionality described in the business case;

?Make the “Go live” decision. Once the executive sponsor is confident the new ERP is ready, the enterprise needs to switch from the old system to the new system.