8 steps to successful ERP implementation and notes to reduce risks

You should know that successfully implementing ERP will help your business create a good foundation for development and increase its competitive advantage in the market. However, in order for the implementation process to be smooth and effective as desired, businesses need to prepare carefully and in detail. In the article below, Viindoo will help businesses better understand the process. ERP implementation and notes to remember to minimize the risk of failure.

Basic ERP implementation process

The process includes 8 steps:

Step 1: Make a project implementation plan

Implementing an ERP system requires the implementer to spend a lot of time and incur significant costs. A detailed and specific plan will help the ERP project take place more effectively. Therefore, the first step you need to do is to create a detailed ERP implementation plan.

To build a project implementation plan, businesses need to collect some important information such as:

• ERP project budget.
• Number of personnel involved in the project.
• The ERP system that the business wishes to deploy.
• Specific problems that ERP needs to solve.
• The work needs to be done.
• Other related information.
  

When the plan is more detailed and complete, the implementation of the ERP system will take place more smoothly and effectively

Step 2: Select a participating team

The quality of the human resources team has a direct impact on the success of the project. Important decisions are often made by the business's leadership team, including general directors, deputy directors, department heads... ERP implementation staff are responsible for standardizing data, bringing information into the ERP system, performing testing and acceptance of the new system, and then retraining other end users. These are experts who can understand business processes and are in charge of consulting on ERP implementation for leaders.

Step 3: Choose a reputable suppliers

Today, there are many companies providing ERP solutions for many other industries in the market. So how can businesses choose a reputable partner? Below are factors to consider when choosing a supplier:

• Consider whether the supplier's ERP platform cost is appropriate according to the business's planned budget?
• Is the vendor's ERP platform customizable and scalable?
• Reviews from the provider's previous partners
  

The step of choosing a supplier is very important and needs careful consideration. Therefore, businesses need to make sure that they have complete information about the supplier as well as that there is agreement between members of the ERP project team and the management board.

Step 4: Install software, deploy ERP project

After the business has made a choice and entered the implementation phase, the supplier will transfer technology, documents and detailed instructions for the business to use. The supplier will be responsible for installing ERP software and building infrastructure. However, this stage will take a lot of time and cost.

• If a business decides to use high-end ERP systems, adjusting the system to suit the business can take from 6 months to 1 year or even longer.
• If your business has a limited budget, you can choose to use ERP as a package or use a number of small modules to meet the necessary functions. The supplier will quickly deploy the system for businesses without wasting much time.
  

Step 5: Migrate data and test

Before moving data, businesses must check and remove unnecessary or redundant data. Once all information and data have been completely updated and verified, the ERP provider will transfer them to the new platform so that businesses can use it on a single system.

After the system has been tested and quality assured, businesses will have a period of testing the features and implementation process of the ERP system. The business will then report the results of this testing experience to the supplier to conduct a review of the entire process. The testing process must be performed thoroughly to avoid errors that can cause disruption to business operations when the system is officially applied.

Step 6: Acceptance and evaluation

After completing the ERP project implementation, businesses need to take an important step which is to check the entire project. This phase is called acceptance and evaluation. The reason is because after testing and completion, the system will be used in actual business operations. Therefore, any missed errors can affect the future performance and success of the business.

To evaluate whether an ERP project is successful or not, businesses need to consider the following criteria:

• The system must fully meet the needs of the business.
• Different ERP software and modules must be compatible and interconnected.
• The system needs to be scalable to accommodate large storage workloads and flexible to change.
• The interface must be easy to use and user-friendly to increase productivity.
• The system needs to provide tools for effective management and planning for all levels of management.
• The system has a high level of security and a separate database to protect important information.
• The system needs to be easily upgradeable to keep up with technological changes and new demands.
• Business customization requirements must be implemented effectively.
• Data storage infrastructure, whether physical or cloud computing, has been perfected.
• Consider the total project cost, including: License costs, training, modifications, implementation...
  

Step 7: Complete training for employees

Quality training of staff plays a very important role and requires a significant investment of time and effort from both leaders and employees.

To solve this problem, businesses need to discuss carefully with the supplier, especially determining whether training costs are included in the software purchase cost or not. Because some providers will provide in-person training to employees, while others may provide businesses with online courses.

Step 8: Monitor, maintain and upgrade the system

After applying ERP in a business, over a period of time it is inevitable that errors or technical problems will occur. Therefore, depending on the signed contract, the supplier will maintain the system for a period of 12 to 24 months. After this time, businesses will have to pay any additional maintenance fees.

In addition, in business cases the need for system improvements may arise. Enterprises must coordinate with suppliers to perform upgrades. Upgraded features may include: Expanding new features, upgrading versions, editing functions connected to third-party software...

Notes for successful ERP project implementation, minimizing the risk of failure

Clearly define the goals and status of the business

When wanting to implement ERP, businesses must clearly understand the current difficulties that the organization is facing as well as the challenges that may occur in the near future, about the next 3 to 5 years. This will help businesses more accurately determine the need to invest in the system to properly respond to the organization's development process.

The most detailed implementation plan available

Businesses need to identify and set specific and detailed milestones before implementing an ERP project. At the same time, share the plan with all participating groups so everyone clearly understands the tasks and work that needs to be done. If this work is not done carefully, the project will run the risk of exceeding deadlines and increasing costs significantly.

Build a suitable implementation team

Members participating in the ERP implementation process need to have experience and be willing to take responsibility for their work. Specifically:

For businesses: The project manager will report directly to the Steering Committee and is the main responsible person from the business side, specializing in carrying out activities such as establishing dialogues, monitoring progress, managing Manage project budgets, distribute resources, provide solutions and decisions when needed... The staff performs testing and evaluates the ERP implementation and application process.

For suppliers: Team of key system consultants and technical team for software installation and technology training.

Thoroughly train end users of the system

Training must be serious and include both theory and practice on actual systems. Businesses need to ensure that all employees using the software have learned how to use the system correctly and effectively.

Above are the steps to successfully implementing ERP as well as notes to help businesses minimize the risk of failure. Before implementing ERP, businesses should make sure they have a detailed plan and choose a reputable and suitable partner. Viindoo - One of the leading ERP implementation units in Vietnam - will be the right choice for you. With many years of experience successfully implementing ERP for many businesses such as EVNPECC3 Power Construction Consulting Joint Stock Company 3, Vietnam Automobile Industry Development Company Limited (Nissan Vietnam), BDO Auditing Company Limited Vietnam,... Viindoo can bring solutions and orient the implementation roadmap to suit the current situation of each business. Please contact us via hotline 02257309838 for detailed advice.