Friday, December 2, 2022

Best Practices for ERP Implementation

By Swapnil Mishra - May 24, 2022 4 Mins Read

Any interconnected processes across departments can be coordinated and executed more efficiently, resulting in better outcomes using an ERP.

Investing in Enterprise Resource Planning (ERP) software is the first step for any company looking to improve its operations by using an integrated software solution that boosts productivity and efficiency.

Furthermore, increased reports of real-time data retrieved from a consolidated database can aid firms in better planning, budgeting, and forecasting.

How to avoid the most common ERP implementation obstacles

To minimize frequent ERP implementation errors, a CIO should have a flexible implementation plan as well as the buy-in of the implementer and key stakeholders in the organization. Without a strategy, the change management procedure could be ineffective and fail to deliver the expected results. During the project’s execution, if the business goals change, inadequate planning and project management could be impacted. Also, vendor deliveries are either missed or delayed in the event of bad planning. CIOs need to be alert for these challenges to crop us.

Also Read: Three Practical Reasons Why Enterprises Should Embrace Confidential Computing

Tips for avoiding extra ERP implementation costs

A new ERP system investment comprises of the company’s time commitment, business process and implementation advice, software, and cloud services, as well as the hardware; therefore, it is essential to keep the project and its expenses under control.

Here are some crucial areas to monitor:

  • Total Cost of Ownership (TCO)

Manage total costs and benefits across time in order to minimize expenditures and optimize returns. Implementations of ERP systems will have a significant influence on the firm.

  • Alignment with business objectives

In many instances, businesses are compelled to adapt their operations to their software, increasing implementation and ongoing costs.  

  • Collaboration with third-party ERP implementation expert

Because ERP implementation is a specialized skill set, working with an ERP specialist, can speed up the implementation process.

Even for an IT-based expert with personnel possessing diverse skill sets, it is prudent to get guidance from an ERP implementer to avoid typical configuration problems. Even better, employing an ERP expert or outsourcing this operation to a third-party firm frees up in-house IT workers to work on other initiatives.

  • Customize vs. standardize

Customization isn’t always negative, but it might present issues when a new ERP software version is released, and then every feature or module may have to be updated, adding unanticipated expenses to the ERP installation budget.

Furthermore, the higher customization that moves the software away from its OTC specifics, the lower the ERP solution’s full capabilities when upgrades are implemented. Purchasing an industry-specific ERP solution allows CIOs and CTOs to reduce customization.

Also Read: How to Overcome the Challenges in ERP Implementation

  • Concentrate on business-critical necessities

Businesses want to fulfil their key goals and objectives for critical processes during implementation.  This needs a high level of attention to these during the planning, design, and development phases. Secondary processes that feed these core processes and any internal or external data must also be taken into account. Scope creep can spiral out of control; therefore, identifying secondary strategies requires caution.

  • Validate the implementation strategy before putting it into action.

CTOs and CIOs can validate an ERP implementation strategy once it has been created to ensure that nothing is missed. A complete validation package includes quality assurance papers, test protocols, and a validation report to help prevent the common problems of ERP implementation. Furthermore, a validation toolkit can assist in ensuring that an ERP implementation plan has adequately addressed all concerns.

Putting the ERP deployment plan into action

Every phase of the implementation plan is double-checked during the validation process. If businesses make minor modifications, they need to be careful to revalidate any impacted processes or tasks. After the validation is complete, everyone involved in the implementation effort should feel confident that the plan is ready to go.

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Swapnil Mishra

Swapnil Mishra is a Business News Reporter with OnDot Media. She is a journalism graduate with 5+ years of experience in journalism and mass communication. Previously Swapnil has worked with media outlets like NewsX, MSN, and News24.

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