A well-implemented ERP can completely transform your organization.
It can save countless hours by automating manual processes for your team. It can show you exactly where your money is going. It can simplify approvals for purchase orders, invoices, expense reports, journal entries order management, and so much more.
But implementing it properly? That’s a whole other story.
There’s a reason why 60% of ERP implementations fail. And even if they don’t fail, so many organizations run into problems in implementing erp systems. It’s hard to do well.
All too often, when companies don’t have a good ERP implementation process to follow, they’ll accidentally go over budget – or miss timelines and suffer massive delays.
And even though it’s typically the implementer’s fault for not giving you a good plan, you have to bear the brunt of the consequences when it comes time to tell your boss. It’s enough to keep you awake at night.
We want to save you the trouble and anxiety.
And that’s exactly what we hope to do by revealing our proven ERP implementation process.
What Is an ERP Implementation?
Before we dive in, it’s critical that we’re on the same page when it comes to what an ERP implementation actually is.
An ERP implementation is simply the planning, configuring, and deploying of an ERP in a business.
ERP systems (Enterprise Resource Planning) help to integrate critical business functions—ranging from finance to manufacturing.
Implementation of these systems can take months and cost tens to hundreds of thousands of dollars. That’s why it’s so critical to do it right.
The 7 ERP Implementation Phases
Phase 1. Discovery
Here, you determine all the needs and requirements you have for your ERP system. Think of it as finding your organization’s “why” behind looking for a new system in the first place.
In order to succeed, you need to figure out what your system needs to be able to do to satisfy both users (your employees) and your business goals. This requires you to talk to everyone in your organization, hear their needs, and work with your implementation partner to discover what kind of solution you could build.
Phase 2. Strategy
You’ll have to decide on your implementation strategy based on your resources and long-term goals for your organization. You can tailor this for your unique needs.
The “big bang” strategy means that you will replace your legacy system with an ERP all at once, in a single phase. A “phased” approach is where your ERP modules are introduced in a planned sequence.
Consider which is best for your organization based on the findings from Phase 1.
Phase 3. Installation
This is where the implementation actually begins. The first version of your system is built based on the insights you learned from the discovery phase. Migration from a legacy ERP usually happens here (if applicable) to make sure all your data is moved over.
Phase 4. Testing
The 1st version of your system becomes the 2nd…then the 3rd…then…the 20th.
The team in charge of your ERP implementation starts looking for weaknesses and broken features. They test and iterate over and over again until the system starts doing what everyone wants it to do.
Phase 5. Training
All the key stakeholders and users need proper training before your new system is implemented.
They don’t have to know the in’s-and-out’s of every single feature–they just need foundational knowledge so they know how they can use the system to improve their work.
Phase 6. Implementation
This is where the new ERP is actually deployed. After rigorous testing and training, your system is pushed into a live production environment and is ready for use. It’s critical to inform everyone on your team about when this is going to happen.
Phase 7. Post Deployment Support
As your organization begins using the new system, you’ll almost certainly come across minor glitches or ideas for new, helpful features.
That’s why it’s critical to have a plan in place for having the support resources available well after your ERP implementation is actually done.
6 ERP Implementation Best Practices to Keep in Mind
1. Define what the “win” looks like, beforehand.
We can’t overstate the importance of a clear vision at the beginning. From the get-go, you need to decide how your organization will define the success of this implementation.
Otherwise, you won’t be measuring the right things – and later on, you’ll have a much harder time convincing your boss that this was a good investment.
So decide on the results you want, and then record a starting point you can measure against. You want before/after metrics to see the improvement. If the project goes really well, you want to be able to show everyone why.
2. Demand careful project management – on both sides.
Your ERP implementer should provide you with careful, detail-oriented project management. And you should provide your own project manager to communicate regularly with this person.
Why is this so critical?
Because you need traceability and accountability. So many people have a hand in what’s going on. And someone needs to make sure the mountain of to-dos are all being done on time.
Yes, it’s tempting to overlook this. Yes, it’s an extra cost. But 3 years down the road, you’re not going to remember the great reason why you set up a certain thing a certain way. But if you have a project manager creating documentation, you’ll never forget the details of your new money-saving systems.
So, have a detailed plan in place, where everyone knows who’s responsible for what. Track your discovery calls. Track your requirements. Record what you’re doing about them. You’ll thank yourself later.
One final note: Project managers should also be “change managers.” We’ve noticed these implementations go much smoother – with much greater buy-in – when there’s a champion on the inside, getting people excited about the change.
Task your project manager with finding a way to reward and excite people – and you’ll likely be pleased with the results.
3. Start learning your system beforehand, to help your implementer build the best solution for your organization.
Your ERP implementer doesn’t have the level of information you have about your organization. Therefore, the more you know about the amazing things a platform like NetSuite can do, the better your organization can use all the amazing functionality of your new system to its full potential.
It helps when you can ask things like, “We’ve got people manually enforcing expense reports in X way. How can our ERP help us automate this?”
NetSuite, in particular, has a bunch of small training videos that you can start with, to help grow your understanding. Spend a couple of hours a week taking courses.
This will help you identify and call out things you wouldn’t have otherwise seen in the initial implementation vision meetings.
Learning the platform you’ll use beforehand can help your organization end up in a much different spot by the end. You can squeeze so much more out of your ERP system when you have more knowledge of what’s possible – and your organization will likely thank you for it later.
4. Secure buy-in from your leadership team.
Buy-in starts from the top. One of the biggest landmines of a failed ERP implementation is lacking support from your leadership team. If you can’t secure 100% buy-in, you won’t have the resources you need to move forward.
So how do you end up with the backing of your leaders?
Start with making your vision of the ERP implementation crystal clear. Paint a picture of the benefits the solution will bring. Hiring someone full time will be necessary to track project success.
Yes, it’s a large investment upfront, and that can be jarring. But make the end results clear. Saving time, streamlining processes, and cutting costs is a dream for the bottom line.
Convince your leadership team that this project can’t be an afterthought. Without their backing, a successful implementation can’t be attainable.
5. Provide your team with an exciting change management plan.
Changing the way things have always been can be painful. Teams may not be 100% on board initially. Especially if it means they are being taken away from their current role and having extra work thrown onto their plate.
This is your opportunity to align and train your team, articulate your vision for success and show how the ERP implementation can ultimately make everyone’s jobs – and lives – a lot better.
How can you make an ERP implementation more fun?
Promote the ERP implementation using creative taglines, mascots, or friendly team competitions to create excitement. It doesn’t all have to be by the book.
What is the best way to keep the project on course?
Project management is a crucial step in making sure everyone is on the same page. While comprehensive project management is typically provided by your ERP implementation team at Crowe, it is crucial to have a detail-oriented project manager from your team that will be responsible for oversight on training and regular communication to make sure all needs are met.
It’s best for your project manager to also act as a “change manager,” championing the ERP implementation from the inside and inspiring excitement within your team.
6. Trust your consultants – lean into native functionality first.
Every business is different. As technology consultants, we understand that. It’s natural to want an ERP system that is tailored to your business and ONLY your business.
But let’s go back to the basics. Times have changed and ERP systems are made to simplify your business. Certain native functionalities (which are already built into a platform like NetSuite) work for the majority of businesses – and you’ll spin your wheels if you try to “over-customize.”
Going simple can make your processes so much easier than they were before.
We know there isn’t a “one size fits all” solution for every problem – and we’ll help you customize your system where it’s needed – but trust us when we say that adopting the standard processes of your system first can help your ERP implementation stay on track from the very beginning.
Follow This ERP Implementation Plan to Solidify a Smooth Implementation Process
Change can be uncomfortable, but imagine the time and money you can save with a successful ERP implementation.
If your whole team makes a commitment to move forward together, leaving clunky manual processes in the past, your organization can transform for the better.
With hundreds of successful ERP implementations under our belts, we’re happy to lead the way and help you champion these three strategies for an ERP implementation process that leaves your team feeling empowered and in control – not stressed.