Project management methodologies only set the general direction, and each company fills them with its own content. Today we are starting a series of publications on ERP implementation using the classic Waterfall methodology. In this article, we'll look at the first stage - clarifying business processes and modeling, which lays the foundation for all further project implementation.
Three stages of an automation project
ToDo divides ERP implementation projects into three main stages:
- Process refinement and modeling
- Software development
- Trial operation
Each stage includes clear milestones with the results recorded in the relevant project documentation. This helps to avoid misunderstandings, record agreements, and guarantee transparency for all participants.
What happens at the first stage
1. Synchronization of terminology and IT infrastructure
At the beginning of the project, the client and contractor teams develop a common understanding of business processes. For example, one company calls a document an "order to a supplier," while the other calls it a "purchase order." We agree on terms, create a glossary of terms, and document the architecture of the IT infrastructure.
Result: common vocabulary, access scheme, description of the IT environment.
2. Team building and system demonstration
A project committee is formed. Initial training and demonstration of the standard functionality of the ERP system is conducted. This helps to better formulate requirements and assess how typical scenarios meet business expectations.
Result: approval of the project charter, survey calendar, and preparation for the collection of requirements.
3. Data collection and survey protocols
The customer describes his current processes: how the company operates, where difficulties arise, and what tasks the system should solve. At this stage, analysts record all the information they receive in survey protocols, which are detailed notes without a rigid structure that are later formalized into technical documents.
Important: Only after verification of the protocols is it possible to proceed to modeling.
4. Modeling business processes in ERP
The collected requirements are superimposed on the capabilities of the ERP system. Processes are simulated: creating documents, checking interconnections, assessing whether the system meets the customer's needs out of the box.
Result: a survey report that identifies functional gaps and potential improvements.
5. Presentation and discussion of the gaps
The customer is presented with the modeled processes. Together with the analyst, they discuss what changes are needed, what is included in the project, and what is not. This is the key point: the budget and implementation timeframe are changed if necessary.
Result: a demonstration protocol, a list of functionality to be implemented.
6. Development of the project concept
A concept is a generalized diagram of the future system: which databases will be involved, which processes will be automated, and the sequence in which the stages will be implemented. It does not contain a detailed description of the functionality, but serves as a roadmap.
Result: approved the project concept and a plan for moving to the next stage - development.
Statistics: why is this stage important?
- Only 29% ERP projects in the world are completed successfully - within budget, on time and with the expected result. One of the main factors of failure is a weak analysis of business processes at the start (source: McKinsey Digital, 2022)
- 85% companies in Ukraine start automation without a clear description of processes - and already at the implementation stage face unexpected problems (source: IT Ukraine Association, 2023)
For Ukraine, this practice is also critical: only 30% companies conduct full-fledged pre-project modeling before launching ERP (ToDo Research, 2024). At the same time, it is this stage that allows avoiding costly mistakes and significantly reducing project risks.
Result
The stage of business process refinement and modeling is:
- full study of the company's processes;
- forming a common vision of the result;
- assessment of the feasibility of implementation;
- creating a basis for accurate planning of the next stages.
It is this preparation that allows you to avoid "surprises" during development and implement an ERP project that meets the needs of your business.
To be continued: In the next article, we'll talk about the software development stage - what exactly happens at this stage, how the backlog is formed, and how changes are controlled.
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