Simultaneous Implementation of ERP and BPO Systems: A Step-by-Step Guide

Most new transitions in the BPO space today are triggered when the parent enterprise is upgrading from a legacy ERP to a new ERP. The migration may be due to multiple reasons – Better features and options in the new ERP, upgrade needed due to the limitations of the current ERP especially w.r.t. the storefront / online payment systems, General End Of Life issues with the old ERP et.al.

When upgrading to the new systems, the effort of training existing resources (read Employees) with the new systems is a huge task and most organizations are not prepared to manage the multiple demands for testing, training and maintaining the Business As Usual (BAU).

Essentially, Enterprise Resource Planning (ERP) and Business Process Outsourcing (BPO) are two critical components of modern business operations. Implementing both simultaneously can bring significant benefits to the client’s organization, including improved efficiency, cost savings, and better business insights. However, implementing ERP and BPO at the same time can also be very complex and challenging, requiring careful planning and execution. Most organizations embarking on this journey are ill-prepared and find themselves overwhelmed at most places.

The quick thoughts below provide a step-by-step guide for implementing ERP and BPO systems simultaneously in your organization or project.

What client organizations are looking for :

A: Define Goals and Objectives

The first step in implementing ERP and BPO simultaneously is to define the goals and objectives. This will help the clients determine the scope of the project and the benefits you hope to achieve. Some common goals for implementing ERP and BPO include improving operational efficiency, reducing costs, and gaining better business insights.

To define goals, it's essential to involve key stakeholders from different departments within the organization. This includes representatives from finance, human resources, operations, and information technology, among others. Having buy-in from stakeholders will help ensure that the implementation is successful and that everyone is aligned with the goals and objectives of the project.

B: Assess Current Systems and Processes

Before implementing ERP, it's crucial to assess the current systems and processes. This will help in identifying areas where ERP can bring the most value to the organization and determine the scope of the implementation.

During the assessment, the following factors should be considered:

Current systems and processes: Evaluate the current systems and processes to determine how well they are serving your organization's needs. Identify areas where systems and processes are inefficient, and determine how ERP can help streamline them. There is absolutely no value (okay – very little value) in using a new ERP with old inefficient processes. Making a new system do the same old inefficient processes is a trap that most organizations fall into. Change Management is difficult in some situations !

Pain points and challenges: Identify areas where the current systems and processes are causing pain points or challenges, and determine how the new ERP can help address them. For example, if the organization is having trouble managing supply chain, a new ERP system that includes supply chain management functionality could help. Most ERP systems were upgraded due to the new demands by UPI / other payment interfaces that the old systems just did not adapt to well.

Data management: Evaluate the current data management practices and determine how they can be improved through the implementation of the new ERP. This includes analyzing how data is collected, stored, and used, and determining how the new ERP can help improve these processes.

Word of Caution : in the current age of BIG DATA, it is very important to evaluate the data that is actually needed. Most new startups and tech companies capture everything – time spent on a screen, clicks, reviews, and much much more. Some organizations store petabytes (1 petabyte = 1 MILLION Gigabytes) and some much more. Just so you know, the next level in data storage is called an Exabyte (1 Exabyte = 1 MILLION Petabytes) !!!

C: Choose the Right ERP and BPO Vendors

Post the assessment of the current systems and processes, it's time to choose the right ERP and BPO vendors. When selecting vendors, most clients consider the following factors:

Experience: Look for vendors that have a proven track record of successful implementations in similar organizations. They consider the experience in implementing ERP and BPO systems, as well as their reputation and customer satisfaction.

Capabilities: Vendor has the capabilities to meet your specific requirements and goals for the implementation.

Integration: Clients want to ensure that the ERP and BPO systems offered by the vendor are compatible and can be integrated seamlessly with the current systems and processes.

The list is actually endless, however, above are just the key high level items.

Project Implementation and Execution :

This is where our role comes in… I am putting in my thoughts assuming that the ERP and BPO implementation is happening for the Client organisation by one Vendor – your organisation.

Step 1: Define Scope and Timeline

Once the clients have chosen you as the ERP + BPO vendor, it's time to define the scope of the implementation and create a timeline for the project. This will help you ensure that the implementation is completed on time and within budget.

When defining the scope, consider the following factors:

Functional requirements: While most of the ERP upgrade decisions are made by the Finance Leadership (CFO team), it is important to determine which functions and features are required for the implementation and prioritize them based on their importance to the client organization. This is not usually limited to the Finance Organization. This includes functions such as accounting, treasury, human resources, supply chain management, and customer relationship management, among others.

Data migration: Plan for the migration of data from your current systems to the new ERP and BPO systems. This includes defining the data structures and formats, determining the data migration approach, and testing the data migration process.

User acceptance testing: Plan for user acceptance testing to ensure that the ERP and BPO systems meet the functional requirements and are ready for use. This includes defining the acceptance criteria, creating test cases, and conducting user acceptance testing.

When creating the timeline, consider the following factors:

Resource availability: Consider the availability of key personnel and stakeholders who will be involved in the implementation. This includes project managers, business analysts, technical resources, and end-users, among others. It is not uncommon to have teams of 100+ specialists engaged in one ERP upgrade project.

Dependencies: Identify any dependencies that may impact the timeline of the implementation, such as vendor delivery schedules, technology upgrades, or regulatory requirements.

Milestones: Define the key milestones for the implementation, including system configuration, data migration, user acceptance testing, and go-live.

Step 2: Plan Your Implementation Strategy

Once you have defined scope and timeline, it's time to plan the implementation strategy. This includes defining the approach, methodology, and tools that will be used to implement ERP and BPO in the client organisation.

When planning the implementation strategy, consider the following factors:

Approach: Determine the approach you will take to implement ERP and BPO. This includes factors such as the deployment model (on-premise, cloud, or hybrid), the implementation methodology (agile, waterfall, or hybrid), and the implementation tools (such as project management tools, testing tools, and collaboration tools).

Project team: Define the project team, including project managers, business analysts, technical resources, and end-users. Ensure that the team has the necessary skills, experience, and resources to successfully implement ERP and BPO in your organization.

Communication and collaboration: Plan for effective communication and collaboration between the project team, stakeholders, and vendors. This includes regular meetings, status updates, and collaboration tools, such as project management software and collaboration platforms.

Step 3 : Prepare for Go-Live

As the implementation approaches, it's crucial to prepare for go-live, the point at which the new ERP and BPO systems are put into production. This includes conducting final testing, training end-users, and preparing for the transition from the old systems to the new systems.

When preparing for go-live, consider the following factors:

Testing: Conduct final testing to ensure that the ERP and BPO systems meet the functional requirements and are ready for use. This includes system integration testing, user acceptance testing, and performance testing, among others. Remember that a lot of time is needed for testing, bug tracking, fixing and retesting etc.

Training: Provide training to end-users to ensure they are familiar with the new systems and can use them effectively. This includes classroom training, online training, and hands-on training, among others. Using the trainees to support testing is always very helpful. It gives your operations team in getting a deep understanding of the systems and the process blueprints.

Transition planning: Plan for the transition from the old systems to the new systems. This includes defining the transition approach, preparing for data migration, and establishing a support structure to assist end-users during the transition.

Step 4: Execute the Implementation

With the planning and preparation complete, it's time to execute the implementation. This involves implementing the ERP and BPO systems, migrating data, and training end-users.

During the implementation, it's important to closely monitor progress and make any necessary adjustments to ensure that the implementation remains on track. This includes:

Monitoring progress: Regularly monitor the progress of the implementation to ensure that it remains on schedule and within budget. This includes tracking project milestones, reviewing project deliverables, and assessing risk.

Managing risks: Identify and manage any potential risks that may impact the implementation. This includes factors such as technology issues, vendor delivery delays, and end-user resistance, among others.

Adjusting the plan: If necessary, make adjustments to the implementation plan to ensure that the implementation remains on track. This may include adjusting the timeline, revising the budget, or making changes to the scope of the implementation.

Step 5: Go-Live and Post-Implementation Support

The final step in the implementation of ERP and BPO systems is go-live, the point at which the new systems are put into production. This is followed by post-implementation support to ensure the systems continue to meet the needs of your organization.

When going live, consider the following factors:

Data migration: The most sensitive item for Go-Live!!! Ensure that all data has been successfully migrated from the old systems to the new systems.

End-user training: Provide end-users with the training they need to effectively use the new systems.

Support structure: Establish a support structure to assist end-users and ensure the systems continue to meet the needs of your organization. This includes providing ongoing training, technical support, and end-user support, among others.

Celebrate Wins: a small celebration to acknowledge the hard-work, diligence and dedication of the team involved goes a very long way in ensuring high morale. Beyond that, it is also the right thing to do !

In conclusion, implementing ERP and BPO systems simultaneously can be a complex and challenging project, but with careful planning and execution, it can provide significant benefits to the client organization. By following the steps outlined in this article, you can ensure that your ERP and BPO implementation is successful and meets the needs of your organization and the client’s goals.