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ERP Implementation Best Practices

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The ERP implementation best practices are the strategies which are used to prevent failure during implementation. It has been found that many companies that go for implementation are not satisfied with the delivered product even if the implementation completes on time because of poor selection of software and high expectations from the new system. Immediately after implementation the system may not deliver the ROI and most of the ERPs take almost a year to be fully utilized by the company.

Some of the facts related to it are that it takes longer than assessed time for complete implementation, the cost of the project can be 50% more and benefits from the project can be very low as compare to expectations.

ERP Implementation best practices ensure the new system provides complete benefit to the client and some of the best practices are -

1. The buyers should understand the requirements and need for the new system. Define the goals of new project clearly and set up targets. The buyers should take time to analyze the vendor's capabilities and their project plan and at every level the communication channel should be open to ensure that the maker of the new system are aware of every minute transactions that happens in the company.

2. At least four to five months time should be allocated to just plan the process and the buyer should not just jump to the new system. The buyer should test the needed changes and business processes, customization features and the security features of the new system.

3. Critical business processes should be identified and the vendor selected for the project should ensure that it will provide the critical processes accurately. Various business operations should be analyzed and priorities should be defined. The company should go for technical advancement and new strategies instead of adjusting to old ways of working.

4. To achieve ROI it is important to define the costs and key areas. The hidden cost of implementation and post implementation phase should be analyzed.

5. Form a team of experts which can ensure the credibility of processes at each stage and the experts should include members from technical and functional background.

6. Distribute the resources amidst employees and the project team. A project manager should be given the job to handling the team members.

7. Conference room pilot can be designed to see how the software will look after the actual process. The team of experts can identify the features which are required and which are not needed.

8. Training should be provided to employees of the company. Some companies hire consultants from outside to get training. Training helps the employees to make correct entries to the software and have a clear understanding to the software.

9. Risk management team can be formed to see there is no loophole in the plan. A counter plan should be provided in case there is any problem during the process.

10. Data migration is a crucial stage when the company can sort out worthy data and discard data which is no more required. The master data and the transaction data are integrated to the new software and the system should be tested with real data.

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