ERP Implementation Timeline: Factors to Consider
Implementing a new Enterprise Resource Planning (ERP) system is a huge task, however, it is important to create an ERP implementation timeline at the start. Chances are that once the decision to implement an ERP has been made, there are still many details that haven’t yet been nailed down, whether it’s which ERP to purchase, who will be leading the project, or when and how the software should go live. This makes it easy for the implementation’s early stakeholders to feel overwhelmed by everything that needs to be accomplished in what can often seem like a very short amount of time.
Plan your implementation timeline as soon as possible to avoid feeling unnecessarily stressed and overwhelmed.
What does an effective ERP implementation timeline look like?
First and foremost, a solid ERP implementation timeline is, at its core, reasonable and realistic.Like with most projects, it is generally a good idea to expect the best, but plan for potential issues. In this case, that means ensuring ample time is built into the schedule from the very beginning. This will give the project managers plenty of breathing room so that the software can be tested, tested, and tested again. That way, when every ERP function is officially live, all parts are successfully working together to address the issues that resulted in the need for an ERP in the first place.
An ERP timeline should also be viewed as a “living” document, in that it should be understood by all parties that changes will happen and dates will move, and a degree of flexibility is necessary from all parties in order to make an ERP roll-out successful.
What factors should be considered when building an implementation timeline?
There is more than one methodology that can be used to create a phased timeline, so it’s important to put an advisory team and project manager in place as part of Phase 1 in order to begin sketching out a loose timeline after the decision is made to implement the ERP.
Phase one is also when the requirements of the ERP system should be laid out and agreed upon. After phase one has been completed, the remaining phases should look something like the following:
Phase 2: RFQs and vendor selection
Phase 3: Implementation planning with vendor (this includes building a more detailed timeline)
Phase 4: Data loading/migration and conversion from legacy systems if available. Now is also a good time to begin “training the trainers” on certain aspects of the ERP
Phase 5: This is one of the most time-consuming phases of the implementation. It is when customer and vendor must work together closely to define, test and approve new ERP policies, procedures, documentation, reporting, and processes. It’s also when broader end-user training often begins, which often brings to light issues with what’s already been approved, creating additional cycles of testing and approval.
Phase 6: Implementation testing in real-world conditions; ensuring that all teams have been adequately trained on using the new ERP
Phase 7: “Go live”
Phase 8: Post-implementation refining
Which phase is most important to the process?
As might be expected, they are all important, but some are potentially more problematic if not planned well. For instance, it’s common that companies fail to dedicate enough time to Phase 5. While there are always implementations that require very little procedural refinement, that’s not generally the case, so it’s wise to plan as much extra time as possible into this phase of the process.
Phase 7 (Go Live) may not be the most time-consuming, but it’s often the most controversial and getting buy-in on how to best manage the ERP’s eventual live roll-out from all key stakeholders during the implementation planning phase is crucial. This is because there are two major schools of thought on how to go live most effectively.
“Waterfall” ERP implementation vs “agile” ERP implementation: Which is best?
The waterfall approach involves turning on every area of the ERP at the same time so that the entire system goes live at once. While useful in some situations, it tends to have one very big drawback, and that’s the potential for cascading negative effects if even one small thing doesn’t go as planned. When that happens, it usually means shutting down the ERP until the issue or issues can be found, and then restarting it all over again. Unfortunately, this often results in the same problem if everything wasn’t caught after the first shutdown, creating a cycle that ends up taking more time and effort than if the roll-out had been planned to occur more slowly in the first place.
On the other hand, agile ERP implementation, while requiring more time on paper, generally takes less time overall than using a waterfall strategy. Agile ERP implementations break down the ERP software into components that can be turned on or off individually, so rather than going live all at once, each part of the system is able to be tested on its own. This means project managers are better able to isolate potential bugs, therefore mitigating the potential for negative cascading effects to other areas of the ERP.
At MIE Solutions, we prefer—and tend to utilize—the agile approach the vast majority of the time, for the reasons stated above.
Timelines: Setting up ERP Implementations for Success
While there are many factors that should be taken into consideration when planning an ERP implementation, creating a realistic, manageable timeline for the process as a whole as early on as possible is probably the most important. Breaking down the implementation into these clearly-defined phases alongside specific action items, allowing adequate time for end-user training, and following an agile “go live” strategy will help to ensure that the ERP roll-out goes as smoothly as possible.