How to avoid disaster when implementing an ERP system

When planning the implementation of a new system, companies often start by considering the required features. However, the main problem is not new technologies and the enumeration of their functions, but the modernization of company processes. You are not implementing the current state, but the future state of where you want to be in a few years. And without a proper definition of processes, you cannot define the scope of the project or select the right platform. 

Start with a comprehensive look at your current systems and processes. This step should include a review of your current systems and processes, including financial, production, inventory, purchasing, HR, marketing, sales, and customer relationship management (CRM). Look for areas that can be improved, name weak spots, define future needs, and note opportunities that a new system can solve. 

"You need to think about extending processes, adding automation or new features such as mobile access, artificial intelligence and business intelligence. Modern and efficient business processes should therefore always be at the heart of your implementation plan." Zuzana Jásnka, Solution Architect.

Nowadays, running an information system in the cloud is a necessity. The main decision is not when a company will move to the cloud, but what processes it will move to the cloud. Cloud solutions offer greater flexibility, scalability and security, as confirmed by surveys and the experience of companies around the world.

Clearly defined project scope and objectives will ensure support and commitment from all stakeholders and allow the success of the project to be measured. This includes determining what specific tasks and processes the ERP system will be responsible for, what data needs to be integrated, and what specific business objectives the system must support. To define the scope of your project, consider:

• Which business functions and processes will the ERP system automate?
• What are the specific data requirements of the system, including data migration and integration?
• What are the key performance indicators (KPIs) that need to be tracked and reported?
• Who are the stakeholders and what are their specific needs and requirements?

Our many years of experience with ERP implementation have repeatedly confirmed that the key success factor is the internal implementation team at the customer's site. Even the latest and greatest software is only effective if it is deployed by a strong team. Lack of time, support or skills among team members can lead to delays, higher costs or unsatisfactory results.

Engaging key personnel who thoroughly know the business processes, work effectively together and have the respect of management is essential to success. Not just people who have the time but not the knowledge. 

"Your project team members should be dedicated to the project full-time or as many hours per week as possible. Then key users should have at least 25% of their time to not just catch up on project activities, but to add value." Petr Dvořák, Project Management Office Manager

Strong management support is also essential. Decisions need to be made about priorities and trade-offs in every implementation. Without strong leadership commitment, even a skilled team can fail. 

An important stage in the transition is choosing the right supplier to be your partner and guide in the implementation. First, choose an information system platform. Only then look for a supplier for this platform, ideally two or three suppliers should be shortlisted. Definitely do not select a partner solely on the implementation price and hourly rate offered. Focus also on more essential factors for your company's operation and synergies throughout the project. 

When making your selection, focus on the business expertise and the partner's ability to guide you through the entire implementation process and possibly the transition to the cloud. It is good to know their cloud experience and references. Also essential are his or her ability to optimize the performance of the new ERP and experience in working with multiple teams. Also check his capabilities for further development of your system and experience in connecting modern technologies such as AI, BI, IoT, or various mobile applications.

Your chosen supplier will already help you with this step. The implementation plan of the information system must be based on your requirements, but also on the realistic time of preparing the system for launch. Time should be allowed for pilot testing and system customization, integration with other applications and data sources, infrastructure implementation, data cleansing, user adoption, etc. There are many steps to consider and this is where decisions about priorities and the desired launch date of the new system come into play.

For our projects, we use the proven 4D - Diagnostics, Design, Development, Deployment methodology, which is based on our years of experience and Microsoft implementation methodologies to minimize project risks resulting from mutual misunderstanding. 

"Our 4D methodology provides a practice-proven, comprehensive set of procedures, tools and documents for implementing an information system. It covers the entire implementation lifecycle from the initial specification of the customer's objectives and requirements to the successful sharp start of system operation, all with maximum effective customer involvement throughout the process." Jan Andó, Methodist and Sulution Architect.

In the Diagnostics phase, we determine in detail the overall scope of the Microsoft Dynamics 365 information systems implementation project. 

At joint workshops we address the different areas of the new information system and thoroughly record the requirements. Respectively, which areas and processes you want to address in the implementation and which will not be part of the implementation. The result of this phase is a clear process tree, a basic design of the system architecture including integrations and migrated areas as well as a list of business requirements. 

The goal of the Design phase is to design a specific way to address your requirements and support the business processes identified in the previous phase. We will also focus on the technical design of integrations and the definition of structures for data migration into the information system. We strive to achieve maximum alignment with your expectations, so already in this phase we will customize the appearance of the screens of the future system, work with test data and process modifications to the standard process diagrams of the information system.

The result is a clearly developed training, testing, migration and integration strategy including a project schedule. 

The goal of the Development phase is to develop the proposed system modifications including integration interfaces. Already in this phase, we will thoroughly test the information system and jointly go through and pilot key business processes. The output of this phase of the project according to our 4D implementation methodology will be a pre-tested information system with data patterns ready for employee training.  

The last phase of Deployment is the deployment and start of live (production) operation. We will help you with the final setup of the system. We will provide training for your key users and administrators. 

The training takes place in groups in several stages. After the users have been trained, the entire system is tested in a validation run. The test migrations will form the basis for the CutOver build and sharp migration, where the CutOver is a detailed plan for the transition to sharp operation, which we then execute. 

Implementing an ERP system is just the beginning. The real value comes with the subsequent development and optimization of the system. Working with a good partner is key to achieving the maximum potential of your ERP solution. 

A reliable partner can help you integrate other process automation applications such as CRM systems, analytics tools or e-commerce platforms. 

In addition, they can support you in implementing new features and technologies that will improve the efficiency and productivity of your business. Working with experts will ensure that your ERP system is constantly updated and optimized, allowing you to keep up with technological innovations and changing market needs.