Best Practices for ERP Implementation
10 Aug

Best Practices for ERP Implementation

Mahipal Nehra

Best Practices for ERP Implementation. Are you thinking about implementing ERP systems into your business? Then make sure that you follow the best practices to achieve success in ERP implementation.

Enterprise Resource Planning (ERP) software systems have gained popularity among businesses as it helps transform a company digitally. An ERP system aims to optimize operational efficiency and streamline business processes.

According to Yahoo Finance, the ERP Software market size will reach roughly $123.42 billion by 2030, up from $53.77 billion in 2022. And if your business has decided to implement an ERP system, then you need to know the best practices for it.

But first, let’s give you a quick overview of ERP software.

What are Enterprise Resource Planning (ERP) Systems?

Enterprise Resource Planning (ERP) system refers to the software application organizations use to manage, automate, and streamline business operations and processes for better performance.

Some business processes that ERP systems help manage are supply chain, accounting, procurement, risk and compliance management, project management, manufacturing, budgeting, planning, human resources, etc.

Read: ERP Application Development

ERP systems are integrated platforms built on-premise or in the cloud providing transparency into different aspects of business processes. It also acts as a single source of truth for end-to-end data and workflow, allowing multiple departments to access it.

Read: Introduction to Enterprise Resource Planning (ERP)

Signs that You Need ERP System

Some of the signs that suggest that your business needs an enterprise resource planning system are:

  • If you notice that the disparate systems that once worked in your favor aren’t working well together, and you are tired of wasting resources, time, and energy trying to sew a solution together.

  • If you are using some basic tools to manage your business processes, but now they are putting limits to your ability to grow and expand in the market globally, it might be a sign you need an ERP solution.

  • Lastly, if you have a remote team and customers but your existing tool or system isn’t accommodating them or helping in meeting customer’s needs. You need to invest in the solution that helps you gain a competitive advantage and meet your customers' expectations.

Read: What is Cloud ERP Software System

Best Practices for ERP Implementation

Some of the reasons why ERP implementation fails are unwillingness to change, unclear ERP requirements, lack of communication, rushing the project, lack of ongoing support and training, underestimating data migration, inadequate system testing, flawed validations, etc.

Read: Top 10 Common ERP Mistakes and How to Avoid Them

However, to overcome these challenges, we have enlisted best practices that you should follow and make your ERP solution a success, including:

Project Team for Discovery and Approval

If you are thinking about implementing an ERP solution, you need to start with the research and planning by designating a discovery team with members across the organization's departments. These members can include IT professionals, accountants, and management.

Read: Benefits of Cloud Computing

They will guide you in determining the features and preferences you should have in the ERP system. At the time of ERP implementation, the project team should be able to resolve conflicts between different organizational groups, adjust priorities, make decisions about strategy changes, etc.

Define Key Requirements & KPIs

You should have a clear vision of what you want from an ERP solution. To define key requirements, you need to analyze present workflows and determine what you want to achieve or how every process can be optimized.

The analysis will help create a list of ERP implementation key requirements. Those requirements might deliver real-time reports or automate the payroll and accounting system connection.

Read: Enterprise Application Development

Also, understanding the key requirements make it easier to define the key performance indicators (KPIs) of the ERP system. These KPIs can assist in measuring the success of ERP implementation.

Best Practices for ERP Implementation

Minimize Implementation Risks

Implementing ERP comes with a risk of failure. However, to mitigate these risks, you can get rid of outdated systems, tools, and technologies, collect all the data in a centralized database, and have the capability for cloud integration.

Outsource Right ERP Development Partner

Before implementing an ERP solution, it is vital to outsource a strong development team, including back-end developers, UI/UX designers, quality assurance executives, and project managers.

While hiring a potential development partner, ask them the methodology they will use throughout the process, how they will overcome roadblocks, their time commitment, internal responsibilities, transparency, etc. You can also look at their previous projects that can prove their experience solidifying that they can address your concerns.

Prepare for Data Migration

Migrating existing data to the ERP system is a crucial process in the implementation. It also requires careful planning and preparation to avoid the risk of data corruption or data loss, especially if you are extracting data from different applications.


To ensure the ERP implementation is accurate, everyone in your company needs to understand what the need for this system is, what it will do, how it will benefit, and what to expect in the future.

And to attain that, you need to encourage active collaboration and communication within your organization and foster trust. There should also be clear communication with business partners throughout the implementation that explains how it may affect them.

Gather End-User Feedback

Gathering feedback from the end-users will help you gain deeper insights into whether the ERP implementation is running smoothly. The feedback will also help in understanding the obstacles faced by the employees allowing you to come up with a solution that can solve them before going live. Collecting feedback is a necessary step if you want to meet user requirements.

Ensure Continuous Training and Support

To get the maximum benefit from implementing ERP, it becomes critical to train and support employees in understanding new procedures and processes. It will also help in mitigating the fear of changes from the employees and resistance to the new system.

You can train in stages by selecting a few end-users for training and letting them train and monitor others by sharing their skills and experiences.

Read: Breakdown of Continuous Testing

Final Thoughts

So that was all about ERP implementation best practices, we hope that you find the article informational. Needless to say, for successful implementation, you need to choose the right development team, opt for the right technology, determine KPIs, and create a trusting environment for easy collaboration.

So, if you want to hire ERP developers who have years of expertise and experience, then all you have to do is get in touch with us and get a personalized quote now!

FAQs: Best Practices for ERP Implementation

What is an ERP system?

Enterprise Resource Planning (ERP) system refers to the software application organizations use to manage, automate, and streamline business operations and processes for better performance.

What are the benefits of ERP systems?

Compliance management, enhanced scalability, data security, centralization of data, cost savings, and increased productivity are some of the benefits of ERP systems.

What are the best practices for implementing ERP?

Some of the best practices you need to consider for ERP implementation in your existing system are:

  • Project Team for Discovery and Approval

  • Define Key Requirements & KPIs

  • Minimize Implementation Risks

  • Outsource the Right ERP Development Partner

  • Prepare for Data Migration

  • Collaborate

  • Gather End-User Feedback

  • Ensure Continuous Training and Support

Posted by Mahipal Nehra | Posted at 10 Aug, 2023 Web