ERP implementation, effective on boarding, on boarding, ERP

Updated: September 7, 2023
Published: May 11, 2021

Customers often ask us what the typical ERP implementation steps look like. The truth is that all ERP implementations vary in detailed scope, but they all follow a lifecycle process that starts with engaging solution providers, delivery partners and internal business and IT teams. Selecting the right ERP software for your business is an important decision that takes broad and deep research to know which one is best for you. The functionality and benefits of an ERP is almost a given. Just as important, if not more, is how easy it is to implement and how quickly you can react to disruptive business factors and change to meet these. As with any major project, strategic definition and proper preparation and planning are key to the erp implementation process.

What is ERP Implementation?

ERP implementation refers to the process of integrating and deploying an Enterprise Resource Planning (ERP) system within an organization. ERP systems are comprehensive software solutions that help streamline and automate various business functions, such as finance, human resources, supply chain management, and customer relationship management. The implementation of an ERP system involves a series of strategic steps to ensure its successful adoption and utilization.

ERP implementation begins with a thorough analysis of the organization’s existing business processes and requirements. This step involves identifying areas of improvement, determining the scope of the implementation, and setting specific goals and objectives. The organization then selects a suitable ERP system that aligns with its needs and conducts extensive planning to define the implementation strategy, timelines, and resource allocation. The implementation process includes configuring the ERP system according to the organization’s business processes, migrating data from existing systems, conducting comprehensive testing, and training employees on how to use the new system effectively. Once the ERP system is successfully deployed, ongoing support and maintenance are crucial to ensure its smooth operation and to address any issues that may arise.

Overall, ERP implementation is a complex and critical undertaking for organizations aiming to enhance efficiency, productivity, and decision-making capabilities. It requires careful planning, coordination, and collaboration across various departments and stakeholders to achieve successful adoption and realize the benefits of the ERP system.

What are the Steps for ERP Implementation?

Here we’ve outlined, in general, QAD’s scalable process for ERP implementation. At each step, the teams review all milestones, deliverables and commitments. They report on progress, noting any challenges or issues. QAD has created a strategy called Effective On Boarding (EOB) that makes implementation as rapid and effective as possible. 

EOB encompasses a combined methodology, accelerated implementation tools and pre-defined industry standard processes and work instructions that allow for agile and effective digital transformation for our customers. We have a rapid upgrade and prescriptive implementation approach for smaller, lower complexity customers and a tailored and scalable approach for our larger, more complex customers.

The key erp implementation steps are outlined below.

1. Engage 

During the first step of customer engagement (with business consultants and sales), QAD is already setting expectations, understanding customer requirements, defining a scope of work, and identifying timing, costs and resources. The teams then commit to a signed statement of work which forms the baseline of the project or program.

2. Plan 

Project/program mobilization and kick-off comes next. It involves planning, engaging stakeholder groups and forming the project team. The team drafts a plan with milestones and deliverables, and identifies vendor, customer and partner resources (see QAD’s ecosystem of partners).

Governance structures such as the Steering Committee and relevant processes around change control, risk and issue management are also agreed upon and set up during this stage.

3. Design

Next, QAD holds business process workshops. QAD Adaptive ERP has built-in process maps tailored to major manufacturing industry best practices, for example, medical devices, automotive, food and beverage, packaged goods industries, etc. These processes also contain tailored and detailed work instructions per process step.

During the business process workshops, we review how closely the customer enterprise follows these industry standard processes. In some cases, enterprises may have processes that are different from industry standards or might be missing some altogether. QAD can fill those gaps, which involves alternative process configurations or designing extensions.

QAD also collects customer-specific requirements for any subsidiary services such as interfacing, EDI, eInvoicing, etc. We complete the technical work to include those subsidiary services.

At the end of business process workshops, we have an agreed-upon functional scope at the process-step and work-instruction level. We then configure our software with those process steps and amend the detailed work instructions accordingly, to meet the specific requirements for each customer.

Domain and data workshops also take place to identify data structures, cleansing and migration issues. Static data is also loaded into the system. 

4. Test

QAD conducts two conference room pilots (CRPs):

  • We test the entire system and run through the testing process with the customer functional teams. CRPs are a process of error identification and resolution. QAD conducts an end-to-end walk-through of every process to record anything that doesn’t work, drafts a resolution and commits to a resolution deadline. The first set of CRPs generally takes about three or four weeks.
  • Following resolutions from the first series of CRPs, the teams reunite for the same error and resolution process – we expect far fewer errors at this step. QAD identifies if any extensions need adjustment at this stage. In QAD’s experience, we have found that it is at this point that some enterprises are rethinking how their operations align with QAD Adaptive ERP and may make operational changes. The team continues to respond to any issues resulting from the CRPs.

Next comes user acceptance testing (UAT) leading to the data cut-over and go-live. User acceptance testing includes the actual users and operators in addition to the functional champions. During UAT, the list of potential issues should be relatively small and manageable. The team resolves issues in the UAT cycle to have no critical or significant issues outstanding at the end of the cycle. In our experience, at the end of UAT, the team may have some minor issues to resolve, for example, affecting screen layouts, which do not affect the go-live schedule. Exiting UAT leads to a go/no-go decision.

5. Deploy

With UAT complete, the team plans for the data cut-over and go-live. QAD drafts a detailed plan for when to stop the old system (preferably on a Friday) and start the new system (preferably on a Monday), with a period of short downtime during the weekend, when dynamic data is cut over and loaded. (Static data has already been moved over and loaded several times before this step.)

At go-live, QAD institutes a period of highly focused customer care and support known as “hyper-care”. The project team is handing over operations of QAD Adaptive ERP to the support team and working to resolve any issues. Depending on the complexity of the engagement, this can take between one and four weeks. Ultimately, the teams want to complete hyper-care and move into a steady state of regular support, with the system fully handed over to the customer.

For global programs with multiple plants, QAD creates a core model as part of the business process design and then runs the CRPs. Next, we launch a pilot in a major plant or in two or three smaller related plants and undertake a “fit-gap” analysis to identify any critical local requirements against the core model. These gaps, once agreed upon, are configured/extended and the pilot UAT and cutover cycle completed. The pilot is then followed by a roll out schedule where these steps are repeated in waves of plants. 

After the hyper-care period is over, QAD conducts an extensive post-project review, to identify any lessons learned, highlight project successes and quantify goals met. The team administers a broad-based check-in with the customer to ensure that the business benefits are being realized.

Finding ERP Success

ERP implementation truly works best when customers and solution providers are open and transparent with each other. The teams need to see successful ERP implementation as a journey and a partnership of equals. By following our Effective On Boarding and QAD Adaptive ERP implementation process steps, customers gain an effective and scalable model for digital transformation.

QAD Consulting and Transformation Services are able to guide our customers through the implementation process and provide thought leadership in rapid, agile and effective digital transformation.

4 COMMENTS

  1. ERP implementation is quite a typical task. These tips will really help us in making the right ERP decision. Your research efforts are highly appreciated. Thanks for sharing this blog with us.

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