Information Technology · Ch 6 — Enterprise Resource Planning (ERP)
ERP Implementation
ERP Implementation
Putting an ERP system into use
ERP implementation is the whole process of selecting, preparing, installing, and putting an ERP system into working use in an organisation. Because ERP touches every department, implementation is a major project that must be planned carefully — a large share of ERP failures are caused not by the software but by poor implementation.
The main steps of implementation
- Planning and needs analysis. The organisation studies its own processes and decides exactly what it needs from an ERP system. A project team (including managers and department heads) is formed, goals and a budget are set.
- Selection of the ERP package and vendor. The business compares available ERP solutions against its needs and chooses the one that fits best in features, cost, and support. (This is done generically and objectively, on merit.)
- System design and customisation. The chosen system is configured and, where necessary, customised to match the organisation's processes — while avoiding unnecessary changes that make future upgrades harder.
- Data migration. Existing data from the old systems (customers, suppliers, stock, accounts) is cleaned and transferred into the new ERP database. Accurate migration is critical — poor data leads to a poor system.
- Testing. The system is thoroughly tested with real-life scenarios to find and fix errors before it goes live.
- Training. Employees are trained to use the new system correctly and confidently. Good training is one of the biggest factors in success.
- Going live (deployment). The system is put into actual operation. This may be done in different ways (see below).
- Support and maintenance. After going live, the system is monitored, problems are fixed, users are supported, and the system is updated and improved over time.
Approaches to 'going live'
| Approach | How it works | Nature |
|---|---|---|
| Big Bang | The whole ERP system is switched on across all departments at once. | Fast, but risky — a problem affects everything. |
| Phased | Modules or departments are brought online one after another, in stages. | Slower, but safer and easier to manage. |
| Parallel | The old system and the new ERP run together for a while before the old one is dropped. | Safest, but costly, as two systems run at once. |
Factors for successful implementation
- Top-management support and clear goals. …
The complete process of selecting, configuring, installing, and putting an ERP system into working use in an organisation, including data migration, testin …
The transfer of existing data (customers, suppliers, stock, accounts) from the old systems into the new ERP database, after cleaning and …
The point at which the ERP system is put into actual day-to-day operation, using approaches such as Big Bang, phased, o …