ERP Implementation Life Cycle
What is an ERP system?
According to Investopedia, an enterprise resource planning system (ERP) is the “glue” that binds together all the computer systems in a large company. An ERP solution is a way to connect different systems and act as a central repository that allows access to all company data. However, your company must first implement ERP.
What is “ERP implementation”?
An ERP Implementation Life Cycle involves installing the ERP software you choose, migrating your business data to it, configuring user information and custom processes, and training employees on how to use it. Although it may seem like a lot, these elements of an ERP Implementation Life Cycle are not all done in one go. These components are completed sequentially, known as the ERP implementation lifecycle.
ERP Implementation Life Cycle, also known as enterprise resource planning, is a crucial step in business operations. It helps reduce costs and streamlines the process. ERP Implementation Life Cycle is the process of automating business processes. There are many steps involved from the beginning, including planning for project implementation, analysis and design, implementation, transition, and operations.
You must go through the implementation process if you have a small or medium business. Business Management Software is specifically designed for small and medium-sized businesses. It can be installed in minutes with no downtime.
There are 8 stages in the ERP Implementation Life Cycle
ERP Implementation Life Cycle are not an easy task. They require 8 steps. Integration of different aspects of your business improves efficiency and greatly contributes to profitability.
Let’s take a look at the eight stages of the ERP Implementation Life Cycle
Step 1: Selecting a package
Each business is unique and each has its own needs. The most important thing is to choose the best ERP software that will work for you. It can be difficult to find the right solution for your business with so many options on the market. This step will eliminate any ERP modules that don’t meet your requirements.
Step 2: Project planning
It is important to plan every aspect of any project before it can be started. This will ensure that there are no surprises when the implementation takes place. Planning is essential to ensure a successful ERP implementation. This includes choosing the right resources and allocating tasks to team members.
Step 3: Analyze GAP
GAP analysis, another important step in the ERP implementation life cycle, is used to assess and compare the current system and plans. This will allow you to identify key processes that require the most attention in your ERP.
Step 4: Re-engineering
Re-engineering can be used to make the process more efficient and worthwhile. It involves many changes and alterations based on the planning and gap analysis.
Step 5: Training
Employees will need to be trained properly to use the new product seamlessly.
Step 6: Test
This is another important step in the ERP implementation process. This is basically to identify and fix any errors before you apply.
Step 7: Apply
This is where the ERP system’s actual implementation takes place. After all, data has been collected, analyzed, and converted into the ERP system, the new implementation can be applied and the old system is discarded.
Step 8: Maintenance
Maintenance is the last step in the ERP lifecycle. Once the ERP system has been installed, employees are responsible for keeping it up-to-date with new technology. Employees must also learn how to keep it up and running whenever necessary.
There are many risks associated with not implementing an ERP solution
Companies that don’t use ERP Implementation Life Cycle solutions face many risks in today’s digital economy. These include:
- Disconnected, disjointed information – Your business cannot operate together because everyone has different data.
- Employees who are frustrated by the lack of data.
- Expensive hardware/software purchases continue to accumulate over time, making it challenging to grow/change businesses.
- A rigid interface that can’t connect your field, back-office, and field employees.
- Inefficiency and lower profitability
- Security/compliance problems and prolonged downtime
- A general inability to adapt to the times.
An ERP Implementation Life Cycle system can help alleviate these worries. These are some of the things you can expect:
- Streamlined operations
- Easy-to-use functionality.
- You can view your business in real-time from any device, anytime and anywhere.
- A secure platform that adapts to the ever-changing needs of your business.
Consider the following example: Brisk Logic customer pay with.
Pay With chose Brisk Logic’s ERP Implementation Life Cycle system to replace SAP. They wanted an agile platform that was cost-effective and flexible, as well as scale for their yet-undetermined business model. Their implementation took just five months after they selected Brisk Logic.
Pay With is a mobile loyalty and rewards platform that manages thousands of transactions per day. PayWith’s Financial Management Suite as well as the Intercompany Accounting module have seen a 50% increase in revenue year-over-year since the implementation of Brisk Logic.
Andrew Black, Pay With Vice President of Finance, said: “Our accountants used [the system] immediately, and then our development team integrated it within a few weeks. Brisk Logic is intuitive and we didn’t require any assistance. It uses common accounting and database protocols, so it is easy to adapt to any background.
Pay With’s rapid growth and smooth start are testaments to the importance of following the ERP implementation steps we have discussed today. The Brisk Logic customer success story is a great example of this.
How do you select ERP Implementation Life Cycle packages?
No matter how big or small the business is, it must manage many functions such as purchase management and sales management. Finance, accounting payroll, and finance are just some of the many functions that must be handled. It is difficult to have separate systems for each function. This is why integrated ERP software is so useful.
It allows all functions and modules to be integrated, which gives you a complete view of your business. It allows your team to search and consume information in one system, eliminating the need to consult multiple sources.
When choosing ERP packages, there are some key features you should consider:
Accounting and Finance Management
ERP software has many important features that allow you to manage your finances and accounting. ERP software provides powerful automation and helps you manage your accounting and finance efficiently. From billing to key accounts processes like accounts receivables account payables and cashflows, foreign currency transactions, forex, etc. It is easy to manage. It also provides accurate and timely details when you need them.
Flexibility to manage multiple business operations
Your business processes become more complex as it grows. The ERP software you choose should grow with your company and allow you to manage it the way that you like. Brisk Logic allows you to print and view reports while you are voucher entry is in progress. You can also load other companies into a report without having to abandon the activity. Also, you can see the oddities and details in every report you view. You don’t have to remember shortcut keys. Instead, you can use a consistent and intuitive workflow to do your work faster.
Forecasting for business
Long-term, businesses face many unexpected situations that can leave them confused and frustrated. The solutions might not be very obvious. With an intuitive ERP system, which can understand your business, business planning becomes much easier. An ERP system can help improve your business forecasting by visualizing various business scenarios and analyzing preliminary reports to support sound financial planning. Brisk Logic simulates different scenarios to help you deal with uncertainty.
A successful inventory management strategy is essential for any business’s success. It is key to a successful business. The more you manage it, then the better your business results. It can be just like cash flow. ERP software automates inventory management and helps you maintain optimal inventory levels. The built-in reporting system allows you to forecast stock movements, analyze stock gaps, and gain insight into low-yielding items, stock trends, and other information. ERP software must provide timely accurate and useful information that is essential for decision-making.
For business growth to be successful, you need more information such as profitable products, fast-moving items, stock age, warehouse stock, cost optimization, and ways/areas that can optimize the cost. It is difficult to ensure information is shared and functions work together efficiently. ERP software reports are a focal point. ERP software integrates all functions and processes into one system. This provides you and your team with complete information to help them make the right decisions. ERP software automates the process of creating reports. This eliminates the need to manually gather data, reconcile it, and then put it into a readable format.
Access data on the move
The evolution of technology has made it easier to access business data from outside the company premises. The majority of ERP software has powerful net capabilities, which allow you to access your data remotely. This includes the critical information that is available on mobile. Although mobile access is more convenient, it’s important to protect your data. Accessing data online requires that you consider this crucial factor.
Brisk Logic is a great choice for businesses.