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Monday, May 27, 2013

How to Follow the Right ERP Implementation Steps

Working on computers, using PCs to track your day to-day activities seems very practical. ERP is Enterprise Resource Planning. ERP is a major step adopted by a small big or a large organization/company to automate all of it's business processes. It has been found through a survey that 90% of ERP implementation projects fail. And hence, it is very important that you have the required information and follow the right steps for proper implementation.

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 Steps

    1
    Study your business processes well. Why do you need an ERP implemented? Before you take the huge decision, study the processes followed in your company for the day to-day work activities.
    2
    Identify the Core Team. Core users are those who are the champions and well versed with the business processes in your organisation. There should be minimum of 3 core user champions from each department who understands the business processes well and who understands what to expect out of an ERP system.
    3
    Hire a group of professional consultants who will study the processes in your organisation and tell you whether implementing ERP is feasible for you in terms of resources and cost.
    4
    Introduce the ERP. Once found feasible, the employees of the organisation should be introduced to what an ERP is, how the organisation can benefit from an ERP and how each of them can contribute to successful implementation of ERP
        Bidding: Tenders are floated based on the study made by the Business Analyst to select ERP Software and proper Implementation Partner. Implementation Partner are those who would install and implement the system for you as per the requirement. Implementation Partners should be selected based on their experience in the selected ERP product, the experience of the consultants and other parameters.
        Implementation Plan: The selected Implementation Partner and the Owner company will prepare a Project Charter which is basically a document stating the Scope and the Schedule of the project.
        Execution: Based on the implementation plan, Execution is carried out. It is the responsibility of the core team to see that all of their requirements are fulfilled and taken care of in the ERP. System is shown to the core team at specific durations to check and verify the same.
    5
    System Testing:In this phase, users are provided with the system clone to work on to test whether all of their requirements have been fulfilled.
    6
    Training: After proper implementation and testing, it is time that the employees of the organisation are trained to work on the system.
        Go-Live: A day is decided based on the Project Charter when the company/organisation will actually start using the system and this day is termed as Go-Live.


Tips

    Requirement Gathering is an important phase. The core team has to make sure that they don't bypass any information.
    Requirement not stated in the initial period may result in "Change Request" latter which caters to additional cost to the organisation.
    It is to be made sure that Implementation Partner provides you with proper deliverables on the system. After each phase there should be Sign-Off taken by the core team and only then next phase should be initiated.
    Most of the ERP projects fail because the employees do not know how to use the system. It is very important that the company employees are given proper training of the system.

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