ERP (Enterprise Resource Planning) is a powerful tool for streamlining the work-flow of a business and there’s a wealth of information online regarding its implementation and the methodology involved.

At its core, ERP involves the integration of a multitude of business functions into a comprehensive system for more efficient business practice. ERP is essentially a tool which makes it easier for employees to carry out their work and employers to run their business. ERP does this by removing barriers between different business units and simplifying lines of communication.

The benefits of ERP are clear, elimination of redundant business practices leading to lower costs, but how does a business go about implementing ERP software, and what is the methodology involved?

ERP systems are not a one size fits all solution to the woes of a business. Therefore it is important that each business approaches the implementation with a level of care and consideration. A business must be sure to select the correct ERP system for their specific needs. As ERP is an extremely broad term, having its origins in the 1960s before growing into the far-reaching concept which constitutes ERP in the twenty-first century, each company must identify its own individual needs ahead of any possible ERP implementation process.

It’s important to choose a respected, experienced ERP provider to handle the implementation process. An established ERP provider will work alongside a business to take numerous factors into account ahead of the implementation. The financial department of any company contemplating the implementation of an ERP system must consider what kind of financial consolidation will be required with regards to the ERP system ahead of implementation.

Selection of an ERP system should also examine the success of the system when it comes to handling a variety of currencies, taxation processes and legal frameworks. Aside from the financial collation aspect of ERP, companies should seek assurance that the new system will provide the best possible standardization and streamlining of their business model. Customization is another keyword for those considering ERP implementation.

A successful ERP implementation will tailor the ERP system to the specific needs of the company involved. On top of these basic requirements, the ERP system being implemented should allow for any possible up-scaling of business operations. After all, growth should be a core motivator in any ERP implementation, therefore the model should allow for this growth.

An esteemed ERP vendor will tick all these boxes, tailoring the system for an ease of integration, whilst allowing sufficient growth potential and minimizing interference with established practices within the business. This methodology of selecting the right ERP vendor for implementation is a vital precursor to the integration of any new system.

Having employed the correct methodology in selecting a reputable ERP vendor, the next step is the process of implementation itself. A potential minefield of ERP system integration awaits, but the rewards at the end of the implementation process will far exceed any stresses associated with the process. Besides, if the correct approach in selecting a vendor has been adhered to, then the transition period should be relatively painless for all parties concerned. ERP implementation is undoubtedly a large undertaking, affected by cost issues and practical considerations, but following the best implementation practices should eliminate these issues for the most part.

ERP implementations are extremely variable and wide-ranging with a host of different systems provided by different vendors. Much like selecting the correct vendor, selecting the correct system and implementation process is a key step in achieving the desired result. A custom ERP system can be built from the bottom up, but this is a costly, time-consuming process. On-site ERP software can be purchased and installed the company’s computers and servers. With this option it’s important to be sure that no difficulties will arise around future software updates.

Successful ERP implementation is dependent on keeping pace with technological improvements, therefore the system chosen must be capable of handling updates at regular intervals. An off-site cloud based ERP system has become a popular choice owing to the growth of cloud storage systems in recent years.

This cloud based ERP implementation is generally more user-friendly owing to the online nature of updates and the enhancement/configuration capability of a cloud system. Choosing the right type of ERP system can make or break the implementation process for a company.

ERP systems are often pursued with the end goal of simplified, open communication within a business, therefore it is important to approach the implementation process with this in mind. Ahead of the integration of an ERP system, executives and leaders within the business should be fully briefed, aware and on-board with the project at hand. The implementation of an ERP system can go a long way to completely transforming a business and it’s important that everyone with a stake in the business, from employee to executive is involved in building a consensus about the project.

ERP software certainly comes with a whole host of potential benefits for a business, but, as always, it’s important to set realistic goals and expectations. The power of an effective ERP system is hugely beneficial to a business with the right methodology, but these changes may take time and effort to fully come to fruition. A core aspect of the ERP implementation process is careful planning. The business and ERP vendor should work cooperatively to decide on the scope of the project, the time-frame involved and the ultimate goals of the venture down the line.

Ahead of the ERP implementation process, it is vital that the company holds the necessary resources for a successful implementation. An optimized implementation process is achieved with the assistance of a happy workforce, informed executives and clear, common goals between all parties. A strong leader must also be identified for the ERP system project.

The potential benefits of ERP systems are unquestionable, but the implementation process can be a tricky business. Integration of ERP software can be delicate and time consuming, so it’s important to follow a clear methodology ahead of the implementation process. With careful methodology, an efficient implementation and concrete goals, an ERP system can completely transform a business and promote huge growth.