ERP Implementations: Steps and Validations for SUCCESSFUL Project

As an ERP consultant, we would have gone through many ERP implementation projects in different companies. Sometimes, few projects come to challenging phases or are drifted to different directions and be stagnant for a long time. Taking out this stagnant project can take a lot of time, energy and investment.

Through this document, we will discuss some processes and validations we need to follow during implementation project. If we try to follow the below discussed processes and validations, implementation projects will have more chances to move in right direction. These validations will surely help us to deliver successful ERP implementation projects.

Through this document, I will try to help through defined processes and validations that we do not go in the wrong direction.

On high level, there are 2 big parts of any ERP implementation.

• Part 1: Future Business process discussion and freezing phase.

This phase has to be completed in different way for different companies. We need to complete this phase differently for large companies than middle size one. We cannot use the same rules and process to complete this phase.

This phase decides the success or failure of the project.

We will explain this later.

Part 2: Mapping of defined future processes in the application. If not mapped, the remaining part comes as GAP.

On high level, this phase is nearby common for any implementation.

From ERP implementation point of view, the implementations can be divided over three buckets.

Big size company implementations (Fixed Processes)

1. Medium size company implementations (Dynamic process driven by company)
2. Small size company implementations. (Dynamic process driven by customers and orders)

Big Size Company Implementations: For implementation, big size Company implementation means

• All Matured and well defined business processes.
• Very Well defined user manual for each department.
• Well defined business domain process owners

These implementations are easier than Medium size company implementations.

The consultants and Business Team need not to work very hard to come up and complete the 1st part (Future Business process discussion and freezing phase) of the implementation.

The second part of implementation covers mapping of the required flows from the first part. This is clean and clear. These implementations are little easier than Medium size company implementations.

Validations during Design

The below validations need to be checked for these type of implementations

1. Does the current flow plus added wish list finalized ? If not, work hard to get this. Once done, project is 50% successful.Do not jump on application, till the final flow is approved.

1. Check if approved flow can be mapped with seeded functionalities.
2. If not, can any workaround fulfill the requirement?
3. If yes, map it and show the prototype to the business before assuming anything.
4. If the workaround is not approved by business, tell them the customization way with all positives and negatives.

Most of the big companies check their ERP tools earlier. Hence their customization is limited to max of 20%.

Medium Size Company Implementations: For implementation, medium size Company implementation means

1. No Black and white business processes
2. Business processes not fully defined or not fully documented.
3. Business processes molded and manipulated as per the current requirements.
4. After few years, business process and sale changes tremendously.

These are the challenging projects to implement.

If we go by our part approach, part 1 (Future Business process discussion and freezing phase) has to be completed properly. If the project is not driven properly, there is lot of possibility that the project will stuck for long time over this phase of completing part1.

During this part, we need to get black and white business process. In most of the times we will not be able to define the correct process after a straight meeting. We all try to find the perfect flow and hence input all our energy on one specific flow. Hence for much of our time, we move in circles. Due to their interdependencies, it becomes tough to finalize any of the flows. All move in circles.

Final processes develop with the versions. The best way to do it and avoid this loop is to develop all flows in versions. All flows with version1 should be designed first. Once version 1 for all flows with open issues is completed, Version 2 should be started with the goal of fixing open issues documented earlier.

Then we should have Version2 delivery of all flows with their respective open issues. We should similarly start version 3 for all documents. This way, we will find our final flows, having all issues fixed.

Version1 flow deliverables and discussions should be completed and then version 2 should start up. Till version3, all flows and documents will be at good status.

The ideal way to complete this is each domain expert from business and technology side should be grouped to come up with the drafted flows of their domain. Once done, these flows should be wet from other impacting teams and business. There can be 10 to 15% changes over the flow but we will save a lot of time by this grouping.

It is not mandatory to follow the above rule to come up with the final flows and documents. There are a lot of other ways and processes. All flows and processes are equally good, but we need to stick to one approach till end. It can take more time but we will get the final processes.

If we try to doubt our strategy and jump to other strategies, we can double our input time or be in a lot of time consuming loop.

Once, we are done with the part one, the next part is similar to Big company implementations. All validations are the same.

Small Size Company Implementations:

For implementation, small size Company implementation means

1. No Black and white business processes
2. Customer is the driving factor.
3. Business changes as per the orders and customers.
4. Business processes molded and manipulated as per the current orders.

The business processes of these companies change frequently. They are mostly dependent on the customers and their rules. These companies need to change their orders and specific business rules as per the new orders.

If these small companies go with medium size company implementation approach, a lot of investment will be there and the application will need changes in next few years only.

Hence, they should do vanilla implementation of most promising application in their business fields.

They should avoid any customizations.

This will help them to be flexible for future changes with less amount of time and investment.