Do you know the best practices for implementing ERPNext (1).pdf
1. Do you know the best
practices for implementing
ERPNext?
ERP implementations take a lot of effort and money. You should be conscious of
the environment before choosing one.
Implementing a project without having realistic expectations and a thorough
understanding will cost time and money.
Whether you’re new to the ERP market or thinking about switching, this piece can
assist you in recognizing and avoiding common ERP implementation issues.
This article will discuss several ERP implementation approaches, essential
considerations, difficulties, best practices, and even typical causes of ERP
implementation failure.
ERP implementations
2. ERP lifecycle of implementation
Let’s first look at a typical ERP deployment life cycle to offer you some context.
These could be referred to as the phases of an ERP implementation.
Assessing ERPs
You’ve decided to either purchase an ERP for your business or retire the one you
now use.
As a result, you perform online research, go to review websites, and even question
people in your professional networks.
It’s crucial to thoroughly investigate ERPs to determine whether your business can
benefit from them in terms of functionality, usability, pricing, etc.
Only with a demo and consultation can you learn more.
Learn about the ERP system to see if it will be useful to you. You should conduct
an extensive study and gather a tonne of data.
Before selecting an ERP, talk with senior leadership about what’s vital for your
business.
Gap analysis
After first understanding, your current system, carried out by the consultants of
your ERP solution provider.
The gaps between the ERP and your present business processes are found by
consultants.
For instance, if you produce fake diamonds, the ERP software might not yet have
all the characteristics necessary to map that industry.
Data migration
Data migration starts as soon as it is evident that your business operations can be
mapped into the ERP. This entails transferring all of your current data from the
outdated ERP to the new system.
The extent of interruption is reduced by importing all pertinent business data,
including financial records, transactions, and customer, supplier, and customer
records.
3. Customization
We now come to customization. This entails building features specifically to fill up
the gaps. Customization fills in all the holes, enabling your company to fully map
all processes to the pricey ERP you’re putting in place.
Testing
Multiple testing iterations are required before the system can be deemed
production ready. This is particularly true when there are numerous adjustments
involved.
Both the client firm and the ERP service providers test the system to weed out any
problems so that it functions properly in production.
Go live
It’s time for your ERP service provider to declare that the implementation is
finished once all open holes have been addressed, staff members have gotten used
to the new ERP, and rigorous testing has been done.
This brings us to AMC or support agreements, where the ERP service provider
charges a yearly fee to support and maintain the software.
To determine how much time you’re saving, comparing modifications before and
after ERP deployment is a good idea.
Let’s discuss the best practice for ERP
implementation
Now that we have learned from the difficulties and the causes of failure, let’s look
at a list of some excellent practices. Although mistakes will inevitably occur,
following these tips will help you save a lot of pain.
1. Prepare your data
Important is the current corporate facts. Consequently, keeping your data
organized and prepared ought to be a requirement.
The main justification for keeping data prepared in advance is to prevent time
wastage when the implementation process starts.
I know it’s dull, but it significantly hastening the ERP’s transition to the
production-ready stage.Companies frequently launch ERP implementations before
4. their company data is ready. In fewer instances, the businesses paradoxically blame
the ERP provider for the implementation’s delay.
2. Set goals that are clear and express them
Understand the entire business process thoroughly, and collect all the needs.
The ERP you’ll be utilizing will be linked to these needs. You should do a
thorough study and analysis.
Don’t forget about any requirements or targets that the ERP is supposed to help
you attain.
3. Ensure that everyone is boarding
Every person who will use the ERP, from the CxOs to new hires, must be on
board.
For various roles, this entails different things. CxOs, VPs, and directors are
expected to encourage change and address difficult issues that crop up while
putting it into practice.
Resistance to change is the most typical one. To use the new ERP, individuals or
groups of employees need to be inspired and trained.
4. Thorough UAT
Thorough user acceptance testing is still another essential component. Make sure
the ERP you’re putting in place satisfies all standards both within and between
departments.
Before adopting the system for production, all transactions, reports, integrations,
etc., should be working without a hitch.
5. Use initially, then customize
Customization, as we’ve already established, is crucial. You know what’s more
significant, though? ensuring that the crucial procedures are operational before
moving on.
You can wait for anything that won’t stop business. The term “secondary
modifications” refers to these less important elements.
5. Installation strategies for ERP
Selecting the appropriate approach and communicating your expectations to the
provider before beginning any ERP deployment is essential.
Waterfall and Agile are the two main methodologies employed.
Let’s examine the distinction.
Waterfall
All of the aforementioned points are carried out sequentially in the Waterfall
technique. The subsequent step cannot be started until the preceding one is
finished.
In other words, if the specifications/requirements documents aren’t fully addressed,
you can’t even begin the ERP implementation.
Although it may appear well-organized, the Waterfall method leads to the failure
of many ERP projects. You may wonder why.
Well, simply because it takes time and makes people impatient. This is an older
design that is still used by big businesses today.
Agile
In Agile, each point is still carried out one at a time. The distinction is that the
following step can start while the preceding phase is still being completed.
Agile enables the simultaneous execution of several stages as well as the revisiting
of steps for revisions and improvement.
For instance, while modules like Manufacturing and Sales are undergoing user
testing, you can go live with the Purchase and Stock modules.
This enables you to make gradual changes, which eases the company’s issues with
change management.
In Agile, resources are added as needed, as opposed to Waterfall where they are
preset. Since it’s impossible to calculate exactly how many resources an
implementation will need, this is a nicer way.
6. When implementing the Agile methodology, communication is essential since
processes run concurrently.
Installation issues with ERP
You should be aware of the typical difficulties encountered during the
implementation phase if you want to get your ERP system functioning
successfully. These are typical mistakes:
Project champion ambiguity
A project champion serves as the company’s single point of contact with the ERP
service provider. They should ideally be a senior employee who knows about your
organization’s operational procedures.
In smaller businesses, it’s the owner/accountant, whereas, in larger ones, senior
management is involved.
Miscommunication and disorder result from unclear project champions or several
project champions.
The project champion needs to be a determined and driven person.
Senior Management is not involved
Senior management involvement is essential since the implementation of an ERP
represents a significant organizational shift.
The implementation process will proceed without internal expert supervision if top
management (VPs, directors, etc.) is not there to provide support, promote change,
and handle issues.
Not promoting change management
The project champion and senior management are accountable for educating and
motivating the workforce to use the new ERP.
It can be difficult to persuade people to change. Changes to
corporate software frequently encounter resistance.
The organization may successfully use the ERP software only if the staff members
embrace the new system. The workers must also be trained to use the new ERP.
7. Overestimating expenses
The overall expenses of an ERP system might vary significantly depending on the
complexity, diversity, workforce strength, and other aspects of your firm.
The costs typically rise as corporate complexity and diversity increase. In other
words, more intricate and unique activities cost more to implement.
To estimate the prices as precisely as possible, it’s critical to be open and honest
with your service providers. Remember that unforeseen on-demand additional
software developments raise prices.
Cases of business edges
Numerous businesses will have specialized procedures that call for further ERP
development or customization.
However, if your company has many specialized procedures, it may delay
implementation somewhat and increase your costs
TAGS: ERP, ERP Software, ERP Software Dubai