Implementing an ERP system is one of the most significant decisions a company can make, and it requires careful planning and a long-term perspective. The success of your ERP implementation depends not just on choosing the right software but on understanding your business’s unique needs, involving key stakeholders, and driving the project with clear, strategic goals.

This article highlights six critical steps to ensure a successful ERP implementation. From thinking long-term and knowing your business inside out to assembling the right team and taking control of the demo process, these steps will help you lay the groundwork for a system that aligns with your company’s future growth and transformation.

1 Think long-term

Keep in mind that you are investing in a company asset, and you want a long-term return on that asset.

Thinking short-term can be a huge mistake when you’re implementing an ERP solution. What you purchase today, based solely on price, or offers certain features that can resolve some issues your business currently faces, may no longer support your business effectively in the long-term.

Companies change. Your company is not the same today as it was last year, nor will it be the same next year as it is now. Investing in a system that just meets today’s needs may not give you the flexibility you need to react to changes in your industry tomorrow.

And always remember: an ERP implementation is not an IT project or a finance project; it’s a business project and must be driven with business benefits as the goal. The first step, therefore, is to think long-term.

2 Know your business inside out

To get the most out of a new ERP system, you need to have a clear picture of what your business is like now, and what you would like it to be in the future,

A new ERP system isn’t just an investment; it’s a catalyst for change. To create a positive environemnt for transformation, so that the changes will improve your business, you first need to take a thorough, honest look at how your business is performing.

Ask yourself these questions:

• Are profits stagnant or declining?
• Are competitors getting ahead – or worse – taking business from you?
• Does your staff feel motivated?
• How old are your business systems?
• Do you keep using them because they’re familiar and comfortable?
• Are they working for you, or holding you back?
• Are you ready to grow or struggling to manage growth?

To understand where your business is at, and where it is heading, you need everyone’s input. Talk to the people doing the core data entry and find out what their concerns are. Are they doing things that don’t make sense, but have always been done that way? Are the basic processes they follow taking too long? And if you could free up some of their time, how could they be used more effectively to benefit the business?

Talk to the people on your service desk. How many spreadsheets do they deal with to ensure your companys service-level agreements (SLA) are met? Could someone take over their role if they were on holiday or sick leave? Or is the system dependent on them being there to remeber what to do and when?

These factors need to be investigated before choosing a system, so you understand what you want to achieve. Down the line, as part of the implementation, you will need to take the supplier through the proceses you currently have, so it’s good to have these insights before you start to ensure you get the most out of your system.

There is no point in implementing a new system to do exactly what your old system did. Once you understand the processes of your business – what’s working and what’snot – then you can make sure that these needed changes are made in your new system.

3 Get everyone on board

To create a positive climate for change, you need the support of the people in your organisation.

Your Sales team, finance team, project management team, contractors – all have their perspective on how your business works, and how it can be done better – so it’s vital for the success of your new system to get their input. If the project is inclusive and your staff’s views are valued, they’ll help to create a positive environment for change.

And it’s not just staff who need to be involved. One problem with an implementation is the non-involvement of senior management. The CEO and CFO of the company must take a positive part in driving the project, showing that it’s important to the business.

We cannot stress enough how important it is to have management at the highest level involved and engaged in the project. That doesn’t mean being at every meeting and making every decision, but being seen to be involved and driving the project.

4 Create your implementation team

Your team composition can make or break the success of your implementation.

Your team size is important. If it’s too big, decisions are slow and cumbersome to progress. If the team is too small, then they could miss key elements. Involve the heads of departments that will use the system daily, and a person from each department who knows what and how things get done and who can give detailed input.

The person leading your team should have the oversight and the energy to move the process along. As the key liaison with the vendor’s representatives, ultimately, they’ll become the internal champion of the new system – the evangelist who promotes the benefits of the solution at each level of your business. Make sure your goals and objectives are clearly defined, so there is guidance for your implementation team when evaluating a decision.

Then empower your team to make those relevant decisions. Otherwise, the project will get dragged out and lose momentum. At the same time, your team leader needs to ensure that any decisions made to benefit one department will also fit within the company objectives.

If your strategic goals are clearly defined, and your team has the time to achieve them correctly, you’ll end up with a system that everyone is happy with.

It will do what you want, and even better, those using it will have a sense of ownership and empowerment because they were involved in the whole process.

5 Work out what you need

If you treat the ERP system as an important investment, it’s fair to expect a return on investment to the company. Take the time to clearly understand the benefits you wish to achieve. They should be specific and measurable.

For instance, you want to improve financial management, but what does that mean and how will it impact your company? You could also look for greater efficiencies, leading to more effective collaboration between teams and processing larger numbers of transactions or greater accuracy when it comes to reporting and be able to sport issues quicker. With your goals worked out, you can then start to look more closely at your system requirements.

6 Choose what you need to see in the demo

There are two types of companies that can be involved in a buying process:

• The company that lets the vendor drive the demo
• The company that drives the demo

Your company should be in the second category – driving the demo. If you leave it to the vendor, you may miss out on critical features or processes specific to your business.

Before you get to a demonstration phase, your internal implementation team needs to establish what the real day-to-day scenarios are that will need to be demonstrated by the new system. Remember, you’re going to be using the system every day, so it needs to work for you.

The scenarios that you select should tie back to the goals and objectives that you defined earlier. Identify everything you want to see in the demo, so you’ll know how the system works with the scenarios and processes that are critical to your business.

Then pull it all together into a pack for the vendos. The more you drive the demo, the more benefit you will get out of it.

An ERP implementation is not something that you’ll do often. Use it as a growth experience for you, your team, and your company. Don’t just take the old and try to do it in a shiny new way. Take the opportunit to reinvent and improve the way you do things.

Listen to your team about how things could be done better, celebrate your successes and, most of all, enjoy the experience. The benefits you can get from a successful implementation can mean a world of difference to your business.

About Momentum

Momentum Software Solutions are a fully accredited, multi-award-winning cloud based ERP and Payroll implementation consultancy. Momentum provide cloud-based, tailored business management solutions to bigger businesses throughout Australia. With our expert consulting team expanding across Queensland, New South Wales, Victoria and South Australia, Momentum have been empowering people in business and helping them think bigger for over 15 years.

Ready to start your ERP implementation? Get in touch with our team of ERP experts on (07) 5479 1877 or fill out our form here for a no-obligation chat.