In this article, we will look at the three main strategies for implementing ERP systems, the technology for implementing ERP systems, and the benefits that businesses receive from implementing ERP systems.
It is customary to distinguish three key strategies for implementing ERP systems:
1. Step-by-step integration – according to this scenario, ERP automation occurs through a phased implementation on the main modules, and then gradually expands to all business departments. However, it should be borne in mind that this method takes time, so the visible effect of the system implementation may not appear immediately.
2. Comprehensive ERP implementation – in this case, the system is implemented immediately and in full, in all areas of the business. We recommend using this option for companies with a simple organizational structure and production.
In one of our materials, we described which companies an ERP system would be suitable for, so we recommend that you read it. with this articleThis strategic approach requires thorough testing. of all business processes before implementing ERP, because it is necessary to analyze and determine which of them must be automated, and which are desirable.
After completing the previous step and modeling processes based on the system's functionality, it may turn out that some business processes should be modified, and some should be abandoned altogether.
3. Combined method – The ERP system is implemented in all areas at once, but it happens in stages. This approach allows to speed up the process of putting the system into operation as much as possible, ensuring minimal loss of work quality.
ERP implementation stages
The duration and complexity of ERP system implementation are due to the need for a comprehensive preliminary analysis of the company's activities. This process includes the following stages:
1. Company description – defining key characteristics such as number of employees, production volume, etc. This allows you to gain a better understanding of the company’s operations and refresh your perspective on daily operations.
2. Automation analysis – determining the level of automation of existing processes and identifying those that require additional automation.
3. Identifying unique business processes – establishing and analyzing unique business processes that distinguish a company from its competitors.
4. Business process modeling – creating business process models using selected software products or ERP systems.
5. Identifying functional gaps – identifying discrepancies between the standard functionality of the system and the described business processes of the company.
6. Taking into account constraints and risks – identifying possible constraints, risks, problems and establishing a framework for implementing the system.
That is why some companies, including ToDo, offer a pre-project survey service. This service not only helps determine whether ERP-based automation is appropriate for a particular organization, but also allows you to adjust certain business processes based on the analysis and report of this survey.
After conducting an express examination, the client receives a detailed report containing:
1. Purpose of the survey
2. The purpose of the automation project
3. Basic business requirements of enterprise employees
4. The most significant problems identified during the survey that may hinder the achievement of the project objectives
5. The most significant business risks identified during the survey
By skipping this preparation stage, there is a risk of wasting a significant amount of time and resources in the event of a lengthy or unsuccessful system implementation.
If the company already has processes in place and is ready to implement the system, we move on to drawing up a project plan. At this stage, we recommend creating a detailed list of requirements for the ERP system, clearly defining areas of automation, establishing project boundaries, and identifying departments for automation.
ERP system implementation is an individual and responsible process. Therefore, the implementation technology may include many stages, but the most common ones are:
1. Preparation for implementation – assessing all aspects and determining the need for automation through ERP. Setting project goals, expectations, budget and timeline.
2. Analysis and planning – at this stage, the company is analyzed, the work of departments and business processes are studied. This is a pre-project survey. Then, tasks are defined, goals are set, after which a technical project plan is formed with subsequent modeling and optimization.
3. Design, modeling and development – development of an adapted solution according to the requirements. Design of key system modules and refinement of the enterprise functionality.
4. Installation and testing – data reconciliation and system testing together with the customer's experts. Finalization of solutions in case of deficiencies.
5. Initial configuration of regulatory reference information (RRI) – creating a single information space for effective enterprise management.
6. Employee training – conducting introductory courses and creating instructions for the correct use of the ERP system.
7. Commissioning – setting accounting parameters and configurations for optimal system operation. Identifying and eliminating problems that arise when working with ERP.
8. Support – identifying individuals or companies that will support the system after implementation. Organizing a support system and resolving possible problems.
What does a business gain from implementing ERP?
Enterprise Resource Planning (ERP) System serves as a means of integrating and automating all business processes to simplify and facilitate their management. This leads to numerous advantages, among which it is worth noting:
1. Versatility – ERP can be used in various areas of production and service, covering a wide range of tools for enterprises of different markets and sizes, including industry, banking, trade, services, etc.
2. Flexibility – ERP is flexibly configured for different business processes, has different configurations and integrations. For example, the Odoo system is modular, you can connect the modules that your business needs. It has 48 modules (a detailed list is here) and about 39,000 thousand works.
3. A single platform – ERP implementation creates a single information environment in the company, which optimizes cooperation between departments, management and staff. Odoo will help digitize all business processes of the enterprise using a single system and avoid a zoo of programs.
4. Distribution of access rights – ERP allows distribute access rights between employees different departments, protecting corporate data from unauthorized access.
5. High-quality planning and accounting - ERP systems are designed to store and process large amounts of data, which allows for a balanced distribution of production resources and making management decisions.
The disadvantages of ERP stem from its advantages, as the complexity and breadth of the system can be viewed from both sides. Setting up processes, transferring information, and ensuring smooth operation require time and resources.
That is why the cost of implementation may seem high at the initial stage, but these costs are paid off due to the long-term benefits that ERP offers.
Try it Odoo and join 12 million users around the world who have already proven the convenience and efficiency of this system, and our team of experienced specialists will be happy to help you implement it at your enterprise!
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