What are the processes of ERP Project

ERP Project Processes

Decision-Making Phase

Companies in the process of growth need to become organized and systematic in managing their operations. Alongside growth, companies encounter various challenges, struggling to manage their business processes. They feel the need for assistance, as they reach a point where their previous ways of handling things are no longer viable. Questions such as “How much money have we invested?”, “How much profit have we made?”, “What are our costs and expenses?”, “Can we manage production stages effectively?”, “How do maintenance and breakdown costs of production machines impact our operations?”, “Which vendor’s products yield higher profits?” become increasingly difficult to answer accurately.

At this juncture, companies decide to embrace digitization for obtaining correct answers, aiming to manage all processes through digital platforms accessible via computers, tablets, and smartphones. This desire for digitization is fulfilled by ERP programs, which stands for Enterprise Resource Planning.

With ERP, which also signifies Enterprise Resource Planning, companies can holistically manage all business processes from customer visits to import, production, invoicing, accounting, and more. It enhances efficiency, provides insights into their current status, akin to a map, and facilitates prompt decision-making for future actions.

Selecting an ERP Software

After deciding to embark on the path of digitization and implementing an ERP system, the question arises: Which ERP software should we choose? There are numerous domestic and foreign ERP software options available in the market. The most crucial aspect when selecting an ERP software is its capability to address all business processes that vary from one company to another.

For instance, some companies heavily focus on online sales processes, while others rely on field personnel or manage orders for production or sales from inventory. The company’s needs in procurement processes must be conveyed explicitly to avoid future surprises. Another consideration is the software provider’s track record. Has the software been used by similar or related businesses before? In other words, references matter. The third and fourth aspects involve swift resolution of support processes post software adoption and the ability of the ERP provider to swiftly incorporate requested changes. Gathering insights from previous users of the software can be valuable in evaluating these aspects.

Conceptual Design Process

After selecting the software and completing the purchase, the process involves defining the business processes in detail before they are transferred to the live system. If necessary, these processes can evolve over time. During this phase, essential elements for the company’s business processes, which might not be present in the ERP system, can emerge as requirements. A team comprising individuals knowledgeable about their respective department’s operations should be formed within the company, along with any existing ERP experts.

At the conclusion of this process, a design report is generated in collaboration with the consulting firm. Although due to factors such as urgency, this phase might not always be completed perfectly, it remains a crucial step. Depending on the company’s size and the complexity of its operations, this phase might extend. For instance, in the case of Petkim, the transition to the SAP system involved a Conceptual Design phase that lasted for four months.

Commitment of Management to the ERP Program

The ERP process is intricate and time-consuming. Successfully navigating this process hinges on the management’s faith and determination. If, after ERP training, users continue to carry out tasks like generating invoices through the old systems, it reflects a management gap. Illustrating this with an example, at a company I worked for, dealers used to manually generate invoices for their operations. Subsequently, these manually processed invoices were then manually entered into the system due to a lack of integration. With the implementation of the ERP software, invoices started to flow into the system automatically.

However, some invoices, manually entered by certain dealers, didn’t integrate into the system automatically. After discussions with management, a decision was made to return non-system-entered invoices. After a while, all invoices began to automatically integrate into the system. This transition led to comprehensive records within the system, enabling effective report generation using business intelligence software.

User Awareness, Training, and Support Process

Efficient utilization of the ERP system relies on users entering complete and accurate data into the system. Without sound data, business processes cannot be managed effectively, and informed decisions cannot be made. To circumvent this, users must first be informed and convinced of the benefits of this digitization for their career and the company.

Subsequently, user training from the ERP provider should be hands-on. Practical scenarios, tailored to their specific tasks, should be created and enacted within the system for better comprehension. I can attest, based on my experience, that such training proves highly beneficial in facilitating swift adaptation during the transition.

Pre-Live Test Processes

After adapting the ERP software to match the business processes outlined in the conceptual design phase, real-world scenarios should be tested before going live. If data needs to be migrated from previous systems, these procedures should be completed before testing. For companies with a branch-dealer structure, a pilot branch-dealer can be selected for testing. Reports from the system, as well as actual operations, are examined by authorized individuals to verify whether the software functions correctly. For companies without a branch-dealer structure, a test based on the conceptual business process scenarios should be performed.

Going Live

The transition to the live system should be a collaborative effort between the purchasing company and the ERP provider. Any hiccups encountered during the transition should be swiftly addressed to prevent interruptions in operations. After the transition, assuming there are no software issues and practical training has been provided, users will gradually become accustomed to the ERP system. As more data is entered, the impact of the ERP software on business processes can be evaluated using reports generated from within the system. With the aid of business intelligence software, comprehensive dashboard reports can be created, enabling more accurate and systematic decisions for future actions.

In summary, the process of purchasing and implementing ERP software is akin to a marriage. It involves an ongoing, live collaboration between the purchasing company and the ERP provider. During this period, it is imperative for the software provider to resolve issues promptly, provide training, and adhere to agreed-upon updates.

On the company’s end, personnel using the software should embrace it for the benefits it offers to their careers and the organization. Users’ participation in training, commitment from department heads and employees, and support from the ERP provider are crucial. ERP programs offer benefits such as digitalization, institutionalization, efficiency, and swift decision-making, along with enhancing employees’ careers and providing the ERP company an advantage for future sales.

Above, I’ve attempted to summarize the transition processes involved. Each of these phases could be expanded into separate articles. Looking forward to connecting in future articles and hoping to be of assistance.

AHMET GÜNOĞLU

ERP Consultant and Business Intelligence Expert

https://www.ahmetgunoglu.com

ERP Project Processes

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