10 best ERP implementation practices
21-12-2023
Implementing business management systems such as Enterprise Resource Planning (ERP) systems is increasingly common in organizations, as companies seek more efficient and transparent processes.
The ERP management system centralizes an organization's important information and helps companies monitor and control their daily operations, accompanying their gradual and sustainable growth. In this way, companies implementing an ERP guarantee information management with the automation of processes, the unification and protection of data, and reports.
The main benefits for companies using ERP business management software focus on the system's ability to interconnect different departments more effectively, improve organizational information, and streamline companies' planning processes. However, the implementation of this solution must follow certain steps to ensure that there are no failures. In this article, you'll learn about some recommendations for avoiding unnecessary costs and preventing disruptive problems when implementing ERP.
The most common risks in ERP implementation
- Uncertainty about the scope of enterprise resource planning and poor choice of technology due to unclear business requirements.
- Poor stakeholder alignment on project objectives, priorities, and strategies resulting in inadequate project implementation, lack of timely support, and budget allocation problems.
- Project delays and insufficient budgeting due to lack of management buy-in.
- Poor project planning and unrealistic expectations (deadlines, budget, results), lead to cost and time overruns.
- Insufficient data quality and inadequate data migration management, lead to poor decisions and high compliance risks.
- Unsatisfactory user training and support, supported by an insufficient integration strategy, and a lack of user feedback lead to resistance to change and low adoption rates of the new ERP.
Best practices in implementing an ERP
1. Assemble a strong teamHaving the right people on the implementation team is essential to the success of the project. It is important to have a project manager, an ERP specialist, team members who will be working with the ERP daily, and a person responsible for change management during the implementation process.
2. Define key indicators and ERP requirements
Companies need to define requirements and a measurement system to monitor the return on investment made in the ERP over time.
3. Include senior positions in the company
Company management must be involved in the implementation of ERP management software, mainly because they are the ones who approve the project budget and therefore must be aware of the importance of the ERP system and its value.
4. Finding the right partner
The ERP management system supplier must be the right one so that you receive good service and optimal support. Trust Hydra iT to implement Microsoft Dynamics 365 Business Central ERP, with over 17 years of experience in the market.
5. Create an implementation plan
A solid implementation plan is needed to keep the project on time and within budget, minimize operational disruption, and maximize the ERP's business value.
6. Manage change correctly
The implementation of the integrated ERP management system causes significant changes in the business processes established by the organization. To ensure greater user acceptance and the overall success of the ERP implementation, it is essential to manage the impact of these changes through an organizational change management strategy that is closely aligned with the company's objectives, digital strategy, and corporate culture.
7. Set a realistic budget and deadlines
Many projects go over budget and schedule due to unrealistic estimates, among other factors. Companies must therefore carefully define budget and schedule limits to mitigate this problem.
8. Ensuring data quality
The information collected by the ERP automatically becomes accessible in different systems and departments of the company, which means that poor data quality in one functional area will affect the company as a whole. The consequences of poor-quality data can be serious, so before starting to adopt ERP, the company must organize its business data.
9. Train employees
The introduction of a new, interactive, and user-friendly integrated management software does not automatically ensure its adoption by employees. It is important to implement an ERP training program in anticipation of the introduction of the new system and workflows. This makes it possible to fill possible skills gaps, enabling employees to be more efficient in their jobs.
10. Review implementation
The implementation of an ERP system doesn't end with its start-up, an effective post-launch support service is crucial for continued success. When creating a support plan it is essential to focus on improving processes based on KPIs, resolving implementation failures, identifying future improvements, evaluating total costs and ROI, and incorporating user feedback for continuous improvement.
Benefits of a successful ERP implementation
- Improved collaboration
- Cost reduction
- Intelligent decision-making
- Increased Productivity
- Data Security and Compliance
- Company growth
Hydra iT helps you maximize the value of your technology investments and get closer to your customers. Our project implementation services for the Microsoft Dynamics 365 Business Central solution follow an agile and effective methodology, focused on results and customer satisfaction.
You can count on Hydra iT for a good ERP implementation, and we'll accompany you throughout the process to achieve success! Schedule a free demo now!