What Is ERP Implementation and Why Does It Matter?

February 1, 2023

Efficiency and adaptation are crucial to maintaining an optimal business environment. Read on to learn more about one of the drivers of these cornerstone goals: ERP implementation.

ERP Defined

The term ERP stands for Enterprise Resource Planning. An ERP system consists of software that enables the automation of business or project processes into one central platform. As a result, aspects such as supply chain operations, financing, human resources, manufacturing, and sales can be linked and managed from an integrated system.

Phases of ERP Implementation

During the first step of implementation, a project team will gather important data about what different groups within the business or project need and what problems persist. After defining the ERP system’s requirements and planning for its framework, the team will evaluate currently existing processes and determine how these processes can best be redesigned and software customized so that seamless migration of data onto a new system or into the cloud can occur.

For the development phase that follows the planning and design phases, software will be configured and data import will commence. In addition, documentation and training manuals will be prepared. Then, the testing phase will begin so that major issues can be addressed and corrected before the system is deployed and goes live. Once the ERP is deployed, the support phase focuses on acclimating users to the system, fixing emergent problems, and upgrading software as needed.

Why ERP Matters

An organization may choose a new enterprise system because it wants to improve, modernize, and streamline an existing system, because the system is nonexistent or needs a complete overhaul, or following a merger and acquisition.

A successful system will yield many benefits. Consolidated data can be more easily assessed, analyzed, and compiled into insightful reports that are invaluable in making good data-driven decisions. Furthermore, departments that otherwise may have no meaningful coordination or interaction become more cross-functional and adaptive and benefit from a more comprehensive base of knowledge. As a result, overall workflow improves exponentially, and time and money are saved. Long-term, agility, optimization, and impact are the rewards.


The Value of Smooth Implementation

Every step of the implementation process is of tremendous consequence. Planning helps underpin an organization’s central goals, whether it be changing cost structures, technological advancement, increased operational efficiency, or another consideration. Understanding these aims helps outline a budgeting and scheduling plan while laying the foundation for deeper goals, such as innovation and growth.

The development phase builds on planning and requires a team of experts that can merge all of those plans into a sustainable system that considers company culture and risk tolerance. Gaps in documentation or delays in migration will complicate the testing and deployment phases, where the true markers of a system’s viability occur. The system will only be as efficient as the individuals who use it, which is why the support phase should never be overlooked or downplayed.

For the most current ERP solutions delivered with precision, customization, and expert commitment, contact Project Genetics Management Consultants, where success every step of the way is in our DNA.

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