: Checklist: How to Successfully Implement ERP in 5 Phases

While the benefits of an ERP system are obvious, it is often not clear to decision-makers how the implementation should actually proceed. Decisive mistakes are often made even before the actual start of the project. If it has not been jointly determined and made clear to everyone involved how the project is organized and structured, misunderstandings and misconceptions arise and responsibilities are shifted back and forth. In this way, ERP implementation projects do not get off the ground and consume budgets without making significant progress.

However, these uncertainties can easily be countered with a structured implementation methodology: A practice-oriented checklist facilitates the path to the new ERP system.

Go straight to the checklist

Every ERP implementation is as unique as the company in which a new system is introduced. Framework conditions such as company size, existing resources and capacities as well as cross-border and cross-plant processes can have a major influence on the implementation time. The existing basis is also decisive. For example, if many processes are already covered by an ERP solution, existing interrelationships, working methods and workflows must be taken into account and discussed between the provider and the company.

In an ideal world, a company's ERP project manager would focus exclusively on the project during implementation. As a rule, however, these qualified employees are also indispensable for other activities and are involved in day-to-day business.

Anyone introducing a new ERP system must be aware that it is a hands-on project. Success therefore depends above all on the user company and provider forming a team from the outset. They must work together to maintain and optimize the processes that have previously given the company a competitive edge with the new system.

Added to this is the workload for the key users (main users), who have to conduct workshops, prepare and follow up and also create training documents. In the hot phase of the project, they should therefore plan an average of 50% of their time for a successful introduction - although the time required can vary greatly from week to week.

Planning, organizing, documenting - this is the title of the first phase. It aims to create the organizational and operational framework conditions for implementation. This includes putting together the project team, including assigning responsibilities, coordinating a project manual that documents the agreed approach to collaboration, drawing up the project plan and holding a kick-off.

Install, train, "big picture" - these are the three key words of the second phase. It comprises the installation of the software components, overview training for the key user team and the joint development of the future process map - as the big picture, so to speak.

Design - this is the credo of the third phase. Essentially, it is about clarifying the question of which meaningful processes the various company divisions want or should work in in the future and how these can be mapped in the ERP system. Whether the outlined processes work, whether interfaces to subsystems need to be defined or whether relevant media disruptions occur can be determined in the integration workshop. Here, the process is run through from A to Z across all departments.

Finally, functional and process descriptions are documented, necessary interfaces and adaptations are specified and a data migration concept is created and refined. Contractual adaptation requirements should also be addressed at this point at the latest.

Configure, customize, test - these activities describe the core of the fourth implementation phase. Here, the provider configures the system according to the defined process and system design - including the implementation of interfaces and adaptations. This is followed by iterative fine-tuning of the migration methodology through migration tests. At the end of this process, the data to be transferred is available in the required quality and is migrated to the new system. This is followed by the final integration test and thus a test run of the processes throughout the company. Finally, the team confirms the successful run and thus the completed process and program implementation. With the declaration of operational readiness, the go-ahead is given to set up the productive system, which is prepared for data transfer and the subsequent go-live.

Launch, training, support - these are the three key points of the final phase. Before the data is transferred for productive operation, the team trains the remaining end users. This is followed by commissioning, during which users are supported online if possible if they have any questions.

Avoiding mistakes is better than fixing them. ERP projects have already failed or been severely delayed due to these easily avoidable pitfalls. Together with the provider, however, companies can easily avoid them.

Experience has shown that companies that define clear goals and precisely define and follow the implementation path will end up with a system that is well positioned for the long term.

Although hardly any two ERP implementations are the same, the formation of a functioning team of user companies and ERP providers is the be-all and end-all. The five steps described above and the associated checklists have proven to be very useful - regardless of the size or complexity of the project.