Implementing ERP for your business can be a challenging initiative.

You often wonder where to start, whom to talk to? Questions such as how to implement ERP, implementation time, investment, forming a project team may often overwhelm you.

As a sponsor of the project, you have more questions than answers. If you are not careful, you may make rash decisions or give up.

This post covers how to implement ERP within your organisation. The target audience for this post is the Business Executives and Project Sponsors.

The post reveals step by step process as to how to implement ERP.

Let us get started!

STEP 1: The GOAL – Zoom out

Before considering ERP implementation, you must know why you need ERP? How it fits within your overall business vision and goals? How ERP will fit within your business and technology landscape?

1. Look at the Big picture – before thinking How to implement ERP

The first step is to look at the Big picture for your entire enterprise. Understand business vision, goals, drivers, problems, risks, challenges, threats, and constraints. View the whole enterprise as one functioning unit. Get your team to document Big picture and share them with the executive group.

This work will answer the following vital question:

What do you need to meet your business vision and goals?

For instance:

We need a one centralised business system to manage all our operations. The business system should automate Finance, Procurement, Supply Chain and Sales processes.

2. Develop a Roadmap

ERP projects can take from 6 to 18 months. Do not try to do everything at once. Instead, work with your executive team to develop a roadmap from a business perspective. The roadmap may have many initiatives. The group of these initiatives helps you manifest your vision to reality. Note that you should not consider the roadmap as a final plan. As you learn more in the later steps, you should update the roadmap.

The roadmap helps you understand the sequence of planned projects. For example:

Project 1: Implement Finance operations with ERP
Project 2: Implement Procurement, Supply Chain and Sales

You have now good understanding of the Big picture and Roadmap. It is time to understand your needs for ERP implementation.

STEP 2: What do you need? Getting the crew ready

With the solid business context in mind, action all the prerequisites to start the ERP implementation.

1. Identify enterprise-wide business requirements

Form a team to work with each department and document their business requirements. Here, you want to identify what you wish the new ERP to do for you. Note that we are not concerned with how ERP will do it. Our focus is on a list of processes that ERP will execute for each department. For example:

Ability to manage pre-sales processes (quote, proposal)
Ability to manage jobs (manage labour time, consumables)

This information will help you assess the ERP products that meet your requirements.

2. Find an ERP product that meets your needs

Assess ERP products considering the Big picture, roadmap, and business requirements. This is an overly critical step. If you choose a wrong product, project cost can increase, and can affect returns of investment. So, seek expert advice, plan for a structured product selection process. The outcome of the step is a selected ERP product that you will implement within your business.

3. Find the trusted partners

For ERP implementation, you need a range of specialist skillsets. So, consider vendors that offer services in:

ERP implementation partner (Integrator)
Independent consultants/contractors to fill specialist skillset like Project Management/Change Management
Technical resources to manage IT infrastructure
Recruitment agencies to provide resources to backfill internal roles in the short term

4. Plan to form a solid internal Project team

ERP Project team includes internal and external resources. The internal resources are your employees who will form part of the Project team. For example, Subject Matter Experts (SMEs), Infrastructure support, Technical teams.

The success of your project largely depends on your team. So, choose the best individuals possible. You need the best resources that understand your business. They must have a clear understanding of the company’s current processes and future vision.

The SMEs have a critical role in the project. SMEs must be open and flexible to new innovative solutions. The project needs them from start to finish. So, choose the committed team players that are decisive and open to novel solutions.

You have now a clear understanding of the project objectives. You have selected software, implementation partners and the internal Project team—the next stage of planning your ERP journey.

STEP3: Plan the journey

In this stage, educate your team about the project’s objectives. You must communicate how the project helps to achieve an overall business goal.

Depending upon the size of the initiative and other factors, you plan a roadmap.

Finally, get the right people to sit in the correct positions to drive the ERP implementation.

Let us look in detail!

1. Document and communicate your vision

Communicate the project objective to the team. The team should know the purpose of the initiative, its importance in assisting business to meet its overall vision.

It helps to develop alignment within the team. The decision-makers can make the right decisions that support your company’s vision. Similarly, it helps the Project/Product Managers can prioritise work effectively.

2. Document and communicate your first project

Do not bite more than you can chew!

If the ERP initiative is significant, then consider breaking it into multiple projects. For example, you may want to implement few ERP modules within the first project. In the second project, you may wish to ERP integration with other systems.

Communicate the objective and scope of your first project. Define the scope of the subsequent project(s) at a high level. Focus on having crystal-clear clarity on the immediate project your team is about to embark on.

3. Get the right people on the bus and get them in the right positions

Ok, you now have a clear understanding of the end goal. You know what the outcome of the project will look like. For example, you will execute core Finance and Supply chain operations on the new ERP.

Now, identify the core team who will form the part of the Project team. For instance, you need Finance and Supply Chain Managers to own business requirements and data migration. Similarly, you may need IT Administrator to help in data extraction from the existing system.

So, work with your executive team members and vendors to design the Project team capable of delivering the quality outcome for you.

Congratulations the prerequisites to kick start ERP implementation are now complete. You are about to start the implementation.

STEP4: Start the journey

During this stage, you prepare for a solid Project launch and put robust project governance procedures in place.

1. Project kickstart

This is the exciting part. You sit with the entire project team and formally launch the project. During the launch, you must communicate:

The Objective of the project
What is expected from each Project Team member?
The known risk, constraints, issues
The high-level project plans
Detailed breakdown of immediate next steps on the project

Project Launch is a joint responsibility of the entire executive team. So, work with Project Managers, Business Executives, Architectures, and other senior members to prepare for a solid launch.

2. Monitor and control the moving parts

Throughout the project execution, you must oversee the project. Please focus on the end goal and redirect your team to it. There will be uncertainties, new information, risks, issues, and surprises. It is part of every project. Ensure the alignment and focus of your Project team towards the end goal. Your leadership and attention to detail to oversee the project is one of the leading factors of the project success.

To conclude, ERP implementations are complex. It is too easy to be distracted by what is possible—for instance, the fancy dashboard, automated workflows, mobile apps. Keep your focus on what do your business needs in the short, medium, and long term. Break the big piece of work into smaller manageable projects. Get the right people and empower them to do the necessary work and make decisions. Rigorously oversee the project execution. Sound project governance is a key to project success. So, make sure you are on the ball!

Before you jump onto something else, take some time and reflect on your past experiences of ERP implementation. What do you do differently this time?

If you are sponsoring ERP project for the first time, prepare a checklist of things to do. Seek guidance from the people who have been on this journey before. Do not reinvent, reuse instead.

I wish you all the best in your journey!

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This question is valuable to answer both in the personal and business context: Are we solving or feeding our problems? We often jump to the solution without patiently understanding the problem. Here are a few examples for some context: I need more storage space in my...

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Effective communication is one of the main challenges within every project and organisation. We all hear this phrase – You cannot over-communicate! If the message is important and reasonably complex, it is often challenging to communicate it effectively. Here are a...

It seems like executives have all the answers. They have something to say about questions related to finance, technology, HR, economy, or business processes. It appears like you know everything. So, how is it possible that executives have all the answers? Let me ask...

Feedback is a vital tool in the business world. We typically ask for feedback from the people we serve or sell our products. We collect feedback from our customers (internal to the organisation or external) to develop a holistic 360-degree input. It makes sense! But...

We often associate Agile with specific processes, events, roles and responsibilities. Therefore, with a very narrow viewpoint, we assume Agile as a software development framework. Agile is a mindset based on specific values and principles. Agile is about starting the...

I had goals to achieve something today. As I left home to achieve them, I realised my goals were vague. So, I choose to change them in the new light of information. I haven’t failed. I won by not achieving arbitrary useless goals! We start all projects with a few...

Okay, you are appointed as the Project Sponsors of the software implementation projects. You may be a busy C-suite executive with no software project experience. You are scratching your head and asking yourself: How do I oversee a software implementation project...

There can be many ways to reach our destination. Few ways may end up better than others. However, these ways can be equally good too. Then why waste time arguing about choosing the best possible way? More than one way can be equally good! Often, the project team...

Projects are all about change. We work together to bring change to the organisation. The change can be new ways of working or process automation. As a leader, we may aim to do all the right things. For instance, we demonstrate exemplary leadership, get the best talent...

Think about a soldier asking his senior before getting to the battleground – what is there for me? Similarly, a surgeon working insane hours handling another emergency case asks the same question – what is there for me? Sometimes there is nothing for us. We just have...

Yes, people hate change! Not every change, though. But, the perceived negative change. The negative change makes us insecure, push us to learn new things, and adds uncertainty to our lives. Therefore, people will continue to resist change. This is a well-known general...

The world is increasingly becoming a noisier place than ever before. If you have the power to spend, you are in demand. Individuals, companies, and associations are targeting you for your attention. Yes, they provide helpful information (like this blog post) and...

Emerging technologies (Artificial intelligence, Blockchain, Robotics, IoT) will push many organisations out of business. It is not a discussion point or speculation; it will happen. For instance, look at ChatGPT and imagine how it will impact education, marketing,...

Kids rely on their parents to help do chores, play, work and make decisions. The parent's job is to provide enough support and nurture them, so they become self-sufficient. The ultimate goal for the parents is to make their role redundant. A similar dynamic takes...

Getting Managers to make a decision can be challenging at times. As a Business owner/Project sponsor, try to estimate the cost of making a decision by your Managers. It is the total of the hours your team spends in discussions multiplied by their hourly rate. You may...

What happens when something seriously goes wrong within a project? Typically, the senior stakeholders get together for a fact-finding mission. They assess the situation and usually find a culprit (scapegoat). The scapegoat is generally not part of fact-finding mission...

Consulting services on massive sale! Take while consulting hours last! Buy 1, Get 1 free! While we have enough consulting hours! Get an additional 30% off when buying consulting services for the next six months! It sounds absurd, isn't it? Yet, we compare professional...

Life is the way it is! So, keep grinding it and have fun! We have all good intentions and still suffer misfortune. We may follow all the traffic rules and drive safely, while another person can strike us from the back. Projects may go out of control due to things...

We must pay attention to whom we are listening to! For instance, if I have a headache, it may not be a good idea to listen to the advice of someone else's who has suffered from a headache. Instead, I will be much better off consulting a physician. We often hear and...

Sometimes we feel alone in the busy crowd we are in. We believe people around us do not understand or care about us. Our simple message doesn’t appear to get across. We often wonder - why no one understand my problems. Look, though we live in the same world, we live a...

The easiest way to make things useless is not to do anything about them. Stop maintaining, and they indeed will become useless. For example, the perfect building, machinery, business process, or software without maintenance will become useless with time. It will...

When we are experiencing positive emotions, we tend to give more. For example, in emotional states, when we are fulfilled, happy, excited, and peaceful, we like to share new ideas, put in extra work, and sacrifice to get the job done. To get maximum output from your...

A soap bar deals with a lot of dirt, grease, and strains and remains unaffected by any unwanted substances. The soap bar does not get dirty with use. Leaders must be like a soap bar! The leaders deal with many negative, insecure, depressed staff members and must...

The first reason is that we know too much about each other. We intimately know the likes, dislikes, thinking patterns, priorities, preferences, values, goals of each other. Their body language communicates the whole heap of stuff to us. Hence, there is seldom a need...

There is a big difference between entertainers and leaders. The entertainers cajole, tell us what we want to listen to, mesmerise us, and make us feel important. The leaders take complete control of the situation, take full ownership, challenge us, and deal with the...

Ask your parents to change their habits. I bet you are going to struggle. We naturally get rigid in how we think and operate as we grow. As a result, our habits become difficult to change. The business world is no different. Ask the executives/managers to change how...

We all have different standards of delivery. For example, one may consider delaying the delivery, and few product issues are normal. Whereas for other vendors, product issues and delays may not be acceptable. Rather than relying on the vendor’s definition, define...

Our world is a collection of concurrent drama stages. We all are participants and audiences of the drama at the same time. As audiences, we are busy watching who is on the stage. We hardly remember the previous stage artists and the injured, sick artists. Let us see a...

Organisations have various types of non-financial debt: For instance: The software does not fully support the business processes The software integrations are manually managed The are quite a few bugs in the software The staff is not fully utilising the given...

Achieving goals, meeting targets, and changing the world tends to take our pride to the next level. We believe we have the power to make things happen. It gives us confidence that we are someone. It boosts our ego too. However, we feel too helpless when we struggle to...

Most of us don’t have time to think about others. Everyone is busy fighting their demons. So, if someone stops to offer some advice, then pay your full attention. Stop giving excuses, sharing other problems and wasting time. You may unconsciously satisfy your pride by...

The biggest obstacle to improving our condition is not additional budget, time, resources, knowledge, or expertise. Instead, it is a very simple but profound thing. It is called ‘action’! We will find a way if we consistently take action to improve our condition. It...

We all have emotional connections to past events, things, places, people and experiences. Our past is part of us. Sometimes we want to re-live our past and cherish memories. Where we stand today is the result of our journey so far. If we are not standing in a good...

We talk about the company's vision, mission, values, strategy and goals. But what about corporate habits? Corporate habits are the default or standard way the employees operate within the organisation. These habits also form part of the corporate culture. For example,...

Do not waste time changing others to think like you. We all view and perceive the world around us very differently. We are slaves of our habits. Our viewpoints, thinking patterns, and values are unique to us. So, save your time and energy by not trying to change...

We love to talk about others. We speak behind their back about how bad they are. We criticise their work, habits, dressing sense, relationships – almost everything possible! But why do we do that? One reason is that it takes focus away from ourselves. Getting in front...

We often perceive Sales professionals negatively. We see them as trained individuals who take our money to offer a product or service. However, it is a very narrow viewpoint. Sales professionals play a vital role in our personal and business life. They help us make...

In the business environment, we determine loyalty by the number of years in the service. However, it is one of the most crude ways to determine loyalty. Let us measure loyalty in a more real way. Here are a few characteristics of a loyal employee: They are prepared to...

“I didn’t like the design!” may mean: No one consulted me about the design before. Or, I didn’t want anyone to prepare the design. Or, There is no need for a design. Or, I reviewed it and didn’t like the design. For various reasons, we do not often communicate...

We often do not regret our wrong decisions in projects, business, and life. Instead, we regret the decisions that we did not make. For example: Holding off on the decision to fire the unproductive employee Holding off on a decision to invest in real estate Continue...

Projects are like painting on canvas. Few decisions are arbitrary; others are not. Few decisions are difficult to change. While we have a vague understanding of the end result, the destination, approach and outcome can vary. It makes sense to start with a Minimal...

The progression through Associate Consultant, Consultant, Senior Consultant, and Principal Consultant may mean someone has been a consultant for a long time. The progression of job titles may be because the consultant has developed as a professional. It may be because...

Consider ditching the weekly Project Status Report (PSR) meeting with the live Project Status dashboard. Consider replacing Risk registers and risk review meetings with dynamic Risk dashboards. Let the owners of risk call for meetings when and if required. Consider...

As leaders, we tend to do too much! We tell the team what to do, how to work which each other, and things to avoid. It may be because we know too much while working in the organisation for a long time. The Project team can be relatively new. But don't forget that the...

You may know someone whose house is a perfect mess all the time. However, to them, everything is normal. You may also see a few desks full of coffee mugs, paper, and junk in your office. However, the people who use the desks may be perfectly harmonious with clutter....

We often stress too much about the stress. We need to stress ourselves and others to achieve bigger things. We must sweat, persevere, and sacrifice to attain higher goals. When we are on our toes, we develop much faster as individuals and organisations. Stress is not...

Humans are a source of enormous energy. When we group and represent an organisation, we become an energy house. We may utilise our energy constructively or destructively. Where the majority of our energy will go depends on organisational culture, leadership, vision,...

Hiring an expert/consultant can be expensive. Therefore, many SMEs often try to avoid hiring them. They try to source resources in-house or other alternate ways. So, why do we need an expert? Here is a list of a few reasons: Experts help businesses to avoid making...

Making decisions is hard! When we make decisions, we own consequences too. If the outcomes of our choices are unpleasant, no one else is to blame. We are on the hook. So, to get off the hook, we often get others to make decisions for us. Should I buy new pair of...

When you are in pain, you may need help from others. However, others may know about your pain too. This can be an opportunity for others to sell to you. Unfortunately, many who lack integrity may use this opportunity to sell and exploit you further because you are in...

In the last few posts, we are grinding on innovation. So in this post, I am addressing the question – how to start innovating? So, what must businesses do to start innovating? In the last post, we covered that innovation starts by asking questions and challenging the...

We all talk about innovation. But how does innovation starts? What triggers us to innovate? There may not be one particular trigger. However, one of the most common and profound triggers is ‘the question’. The questions like: Why does the customer have to wait? Why do...

When you hear the word innovation, what comes to your mind? You may think about new or emerging technology. For example, Blockchain, Crypto, IoT, AI, and Robotics. Other things that come to your mind may be a lot of capital investment projects. It may sound too much....

We all are busy doing productive or unproductive work. We like to follow easy steps to achieve the outcome as soon as possible, with minimum effort, cost, and risk. A Business owner may not be interested in tax calculations. However, he may love to know all about tax...

It is excellent to stick to the agenda and tightly run meetings. However, we must allow freedom of new thoughts, ideas, and questions. These are all the byproducts of discussion. These topics may not directly relate to the meeting agenda but are essential to note. The...

We may have no idea about art, but we may not hesitate to tell an artist where to improve. We can have strong opinions about the look and feel of the software but no clue about user experience. Yet, we tell designers how to design all the time! As...

He made me cry! She gets on my nerves! The team is useless! My manager doesn’t have a clue what he is doing! My employees make me mad when they continue to work from home! We make such complaints all day. Although we may not say it out loud, and tell such narratives...

Give the best employees the convoluted software systems and see their motivation dissipating into thin air. Give average employees modern business systems and see their productivity skyrocket. No one likes to find information. We like the information to be available...

We buy for different reasons. There is nothing good or bad with our buying habits, but few practices are better than others. Let us look at the following three types of buyers: Demand-specific buyer: This buyer goes to the market to satisfy the demand. For example, if...

The Project team expects you to make all the major project decisions as a Sponsor. It may be a default position and expectations, but you have a conscious choice. You can choose to be a decision maker or decision facilitator. There is a big difference between them. As...

As a business executive, you are responsible for making major business decisions. The challenge is making decisions in an area where you may not have the required domain knowledge. Often one such area is Information Systems. The entire business and organisation suffer...

Forming a Project team is one of the most crucial tasks for the Project's success. However, it is a challenging task to get the best people to work on your Project. Why? Because, firstly, they are already in demand. Secondly, there are in scarcity. Thirdly, the best...

"What Got You Here Won't Get You There" is one of the great books by Marshall Goldsmith. The central theme is that the tools and habits that have helped us to achieve what we have now may not help to get to the next stage in life. Hence, we must find new tools,...

The Project teams juggle multiple balls (tasks). They often wear multiple hats and pretend that they have got things under control. To demonstrate this, they must have a few balls with them. There should not be anyone waiting for a ball from them. Hence, it is common...

Human potential is the most underutilised resource. The existing structure of the division of labour makes it even worse. In the workforce, everyone is bound to have a job profile. The expectation is for the employees to operate within the parameters of their job...

It may sound strange, but it is true! Technology projects revolve around the Sponsor's focus point! The Project team, vendors, and Business executives ensure to keep the Sponsor in confidence. Ultimately, as a Sponsor, you are accountable for the project. You are the...

Project delivery teams love to standardise things, so it is easy to rinse and repeat! In the Project execution, the repeatable steps are easy to replicate and automate. Further, it increases the efficiency and profitability of the delivery teams. Standardising project...

Observing yourself is a fascinating thing to do. While parking my car in the city, when I see too many parking spots, I often catch myself taking my time deciding where to park. When there are too many choices, I take my time to select the best one. So, no other car...

Life has gifted us with expectations. We expect things to happen in specific ways. We assume that if we do the right thing, life will return good to us. We plan and think that we have things under control. Then, life does what it has always done! We get bitter...

It is a fascinating question: From where to start the digital transformation journey? There is no one answer to this question. You could say start by refining Business Strategy and goals or, Develop an Enterprise or Business Architecture or, Documenting current...

Let me ask you: Are your requirements futureproof? I know it is a tricky question to answer. How can anyone predict the future? But, we must have a vision for the future. When you buy a new house to live in, you may not know your exact requirements. However, you may...

Have you ever considered the following questions before implementing the ERP? Enterprise Architecture (EA) is not a discipline of producing nice drawings. Instead, EA practice is meant to answer these fundamental questions before embarking on the ERP journey. This is...

Before we start any physical development, we prepare architectural drawings for the building. Before developing software, the engineers create prototypes, wireframes, and technical architecture. Before developing any complex machines, engineers spend massive effort on...

Since morning, I have pondered the various facets of this question: What is listening? Here are a few leading thoughts: Many of us assume that listening is - not speaking. So, if we are not talking in the conversation, we are listening to the other person. However,...

In general, as customers, we hold a position of power. The service providers are meant to provide the best possible service, customer care and warranty. Therefore, when we speak, we are meant to be heard. We possess the position of power (either direct or subtle). The...

You may hear this common complaint from the Business Analyst or Consultants: But you do not provide clear requirements! Or The customer does not understand the requirements! Or You keep changing your mind about the requirements! It is one of the common complaints from...

When we get too busy with our lives, after a while, there is an epiphany moment. We realise that our house is a mess. There is too much stuff; things are unorganised and intertwined to present themselves as a perfect mess! The whole experience can be pretty...

What if my project is on track, but I am implementing the wrong software product? How about I am overeating because my fitness app reports I can intake more calories? How about I decide to watch TV rather than go for a walk, as my smart watch tells me I have enough...

There is a big misunderstanding about the role of ERP and CRM vendors. The common assumption is that ERP and CRM vendors are responsible for implementing their products based on your specific needs. If you assume that the vendors will offer a turnkey solution by...

Uneducated buyers lose the most in the marketplace. Seriously, it is not the seller's job to educate buyers if their offering is fit for purpose. The buyer must take the initiative and understand the problem, pain points, and how the proposed solution will fix the...

Any good host would create an environment to make their guests comfortable. The sensible host even alters the environment (lighting, food, music) that suits the guest’s preferences. Similarly, we must develop the habitat of animals and birds before bringing them to...

While preparing for advanced mathematic exams, I used to ditch a few unimportant topics, first. After all average student like me will not win by preparing everything. Similarly, when we go to the gym, we ditch a few exercises that do not assist us in meeting our end...

We hear a lot about greatness. Great products, people, experiences, and services. Then, there are more inspirational quotes like ‘Good is the enemy of great.’ We hear about greatness from the motivational speaker too! In addition, salespeople often refer to greatness...