ERP implementation is the process of enterprise selection, configuration and put the ERP system in actual operation, to connect the data and processes of the departments such as accounting, sales, purchase, warehouse, hr on a unified platform. The goal of ERP is not just replacing the software discrete, which is standardized processes, data transparency and improve governance, help leadership make decisions based on accurate data, timely.
In the context of business increasingly have to manage multiple departments, more data, and operating procedures, complex ERP implementation is becoming an inevitable trend, choosing rather experimental. ERP software not only support, accounting, sales or logistics, which is the system that helps business connect data, standardize processes, improve management capability overall.
The article below Lac Viet will help the business understand the deployment of ERP what is ERP deployment process consists of the steps? Where is the experience in implementing ERP important for the system to really bring value in operation management.
1. Overview of ERP implementation in business
1.1 deployment what is ERP?
ERP implementation is the process of putting a system ERP (Enterprise Resource Planning – System resource planning, enterprise) into actual operation in the business. Don't just install software, ERP implementation was organized the way businesses manage data and operating procedures from which to create the link between the parts such as finance, accounting, personnel, purchasing, logistics, sales... in a management platform sole.
If each department uses its own tools (Excel spreadsheets, software, independent), then after ERP implementation, all important data is aggregated into the same system helps to eliminate the wrong number, increased processor speed of work and brings the total picture more about business operations.
Imagine the business you are taking many handbooks, other spreadsheets to manage sales, inventory and accounting. When there is ERP, all information is transferred into the same table “data only” that all departments are accessible according to the powers. Thanks to that, the cycle business faster more consistent.
1.2 The form of ERP deployment popular today
When implementing ERP, besides choosing the right software, businesses also need to consider form of ERP implementation in accordance with the scale, resources, and requirements management data. Currently, the business typically choose one of three forms of implementing ERP downloads below.
- Cloud ERP (ERP on cloud platform) is the form businesses use ERP software through the internet, data is stored on the infrastructure of the provider. The biggest advantage of Cloud ERP is the cost of the initial investment is low, no need to invest in servers, easy to deploy, expand quickly when business increased scale. This form is particularly suited to small and medium enterprises, or organizations need to implement ERP fast to standardize the process. However, businesses need to assess carefully the factors of security, the media, regulatory compliance, data management.
- On-Premise ERP (ERP installed on-site) is the form of ERP implementation on the server system of the business. With this model, the enterprise strictly control data, infrastructure and access, in accordance with the organization has high requirements for security, internal data, or process management complex. Though the cost of the initial investment, deployment time usually higher Cloud ERP, but On-Premise ERP brings the proactive, long-term stability for the large-scale enterprises, or activities in specific areas.
- Hybrid ERP is pattern matching between Cloud ERP and On-Premise ERP, enables enterprises to deploy a number of modules on the cloud platform, while still keeping the distribution system at critical internal systems. This form helps enterprises leverage the flexibility of Cloud ERP, while ensuring the control core data, especially suited to businesses that are in the phase shift of each step or have multiple branches, members of the unit.
The choice of the form of ERP implementation is suitable right from the start will help businesses optimize costs, reduce technical risks to ensure the ERP system is really efficient support for active management and long-term operation.
2. Why businesses need ERP?
2.1 ERP helps businesses operate more effectively
One of the biggest benefits of implementing ERP is to optimize the internal process. When data is automatically updated in real-time between the departments, businesses no longer have to enter data multiple times, reduce errors, shorten the processing time of the job. According to the study of software company Asana, the average employee takes up to 62% of the time working on the task repeated and ERP helps to remove the majority of the task as such.
This has a direct impact on business operations: many business ERP implementation for know they significantly reduced the processing time of transactions, operating costs than before with the system.
2.2 ERP provide accurate data, decision support
Before implementing ERP, data about inventory, sales, finance or personnel are often dispersed in the different systems, leading to delayed reporting, lack of precision. An ERP system focused data to help leaders see the overall picture, real-time, from which decision fast, right over with evidence instead of feeling.
2.3 ERP increased ability to control and compliance
With ERP, business set the standard procedure, data access according to role. This helps to reduce the risk of errors crafts, at the same time help your business easily comply with the requirements, financial reporting, tax, auditing.
2.4 ERP create a platform to develop according to the scale
When business expansion — as more branches, increase production capacity or diversity channel sales — management model, old (Excel, many individual software) will quickly become not afford to meet. ERP helps businesses cope with the growth that does not cause fracture process thanks to data and processes are standardized.
3. The signs that the business was “time to” deploy ERP
The decision to implement ERP systems do not merely buy new software. This is a strategic decision about the business operation – when the management system is at the start causing congestion operational efficiency, limiting growth, wasting personnel costs or data. Therefore, determining the right time to deploy ERP helps businesses optimize processes, reduce costs and make better decisions in a competitive environment.
Here are the signs practical, easy to recognize from daily operations of the business, for file management system has come to the threshold no longer afford to meet:
Data is dispersed, incorrect statements, take time synthetic
When data is collected, stored, discrete in many different software (Excel, software private sales, retail, accounting, etc.), synthesis report is often late or incorrectly. This should make the leader board does not have the overall look, timeliness of performance, business results, leading to the decision to delay or deviation. Here are typical signs and shows the current system was “overwhelmed” and ERP can be solved by centralizing data on a single platform.
Process increasingly complex, time-consuming to errors
When the business expands, the business processes will arise more steps or exception (exception). If at this time operated mainly based on handcrafted, employees will take more time to process step by step repeat, at the same time prone to error. ERP helps to automate the process step core and remove data-entry craft repetitive.
Business scale up (add branch/business unit)
As businesses grow to multiple locations or business units, management systems old really difficult to control. The report, compiled from multiple sources easily lead to false, causing the leader board with no painting data consistency. ERP helps to link all units in a single system, reduce errors, increase transparency in management.
Leaders need to aggregate data quickly to a decision
In the business environment competitive, strategic decisions must be based on accurate data and updates in real time. When the old system for the synthetic data take many days or weeks, the business will miss market opportunities. ERP provides real-time data to help the decision-making fast right over.
When operating costs increase sharply due to lack of effective
Operating costs increase may be a sign the business is wasting resources on the unnecessary tasks, errors, duplicate data, flaws inventory – the issues of ERP has the ability to solve. Recent research shows that many businesses after the ERP implementation has shortened the processing time of orders, inventory reduction is not necessary, and increase resource efficiency.
4. The process of project implementation standard ERP in business
ERP implementation is a project operated switch business requires planning and cooperation between leaders, project teams, internal consulting partner/supplier. A standard procedure not only helps to reduce technical risks, but also ensure that the business benefit practices such as the operation more efficient, data-focused, transparent decision right over.
Step 1 – Survey the current status and identify the target deployment ERP
Objective: to Understand the “pain points” in current operations and determine the desired result after the ERP system.
In this step, the business should assess the existing process are wasting time, cost, where, in particular as:
- Employee time lost to aggregate reports from many different data sources.
- The number of holes, fix the data due to data entry manually.
- Not unification process between departments.
The survey skills to help businesses identify clear objectives for ERP project: be it financial management, precise control inventory in real time or standardized operating procedures. When clear goals, the project team easily design, ERP solution suitable and measurable success later.
The business does not depend emotional when choosing software or new process that has clear direction based on the problem to be solved.
Step 2 – choose ERP solution fits your business model
Target: Selected ERP solution matching the scale of operations and growth pattern of the business.
In this step, the business should consider factors such as:
- ERP standard (off-the-shelf) to fit most prevalent processes, help in faster deployment at a lower cost.
- ERP custom (customized) suitable if the business can process individual peculiarities.
- ERP internal storage (on-premise) compared with ERP running on the cloud (cloud): Cloud ERP helps businesses save costs, infrastructure, access data anytime, anywhere, while on-premise provides direct control over.
Suitable option helps to avoid situations purchase the software too strong, but not necessary, or too weak not meet the demand, leading to large cost but low efficiency.
Step 3 – Standardized process before bringing into the system
Objective: to Identify and refine internal processes to ERP support effective rather than re-create old bugs.
One of the common misunderstandings is ERP can “fix” every problem process. Fact, the system is only as good as business processes are standardized, updated before putting on ERP. This requires business:
- Collect existing procedures of each department.
- Compare with best practice industry.
- Adjust to achieve efficiency, compatibility with the system.
The standard process the goods before to help ERP work properly expectations, avoid the wrong operation and reduce the time to adjust after Go-Live.
Step 4 – system Configuration & data conversion
Goal: set the right ERP needs, data transfer from the old system to the new system.
In this step, the business need:
- Standardized input data: remove duplicate data, not the exact or error-free.
- Set role access: ensure each user to only see and manipulate the data according to his work.
- Check carefully before moving the entire data.
Data transfer is the biggest challenge in implementing ERP, because the old data, not the standard will affect the report, the new process. There have been studies shown that the normalized data before moving help reduce your risk of errors and increase the quality of information after deployment.
Data full accuracy on ERP help every report, leadership decisions become more precise, effective support strategies.
Step 5 – user Training & test run
Goal: Ensure that users really understand the system and the system works as designed.
Training according to the actual role (such as accounting, logistics, sales) rather than general training will help employees capture fast, correct application ERP functions necessary for their work. At the same time, the test runs parallel between the old system and ERP in the period before the Go-Live will:
- Early detection error.
- Minimize disruption of work.
- Increase the level of reliability when switching to ERP official.
Training help increase the rate of employee application system, reducing the resistance to change and enhance the efficient use after Go-Live.
Step 6 – Go-Live & operate the official
Objective: ERP was officially put into use in daily activities.
This stage is not just “turn the system up”. Business need:
- Activity tracker in the first 3-6 months to assess effectiveness, adjust if necessary.
- Plans after deployment support from both internal and partner provider to handle problems that arise in a timely manner.
ERP when is the official release will start to bring value increase efficiency, reduce errors and provide real-time data for leaders to make decisions more accurate..
Process standard ERP deployment not only is the technique to install the software, which is a journey of transformation management. Each step is associated with the actual value that the business received: from understanding the needs, choose the appropriate solution, standardizing processes and data, to training to operate effectively.
5. Experience ERP implementation success from the perspective of governance operate
As practice shows, many ERP project failure or does not bring value, as expected, not because the software is poor, but because business approach to ERP as a technology project pure. From the perspective operation management, ERP is a project to change the way businesses operate, directly related to people, process, way of decision.
Below is the core experience to help businesses deploy ERP success and create real value.
5.1 ERP implementation is project management, not project IT
A common mistake is the entire ERP project for the IT department or software vendors. This makes ERP misunderstood to be “installed software”, while the nature of ERP is standardized, re-structure the way business operate.
In the ERP project success, the role of leaders and the service department is the determining factor:
- CEO: goal-oriented strategy, conflict resolution between departments and expressed strong commitment to the project.
- CFO / chief accountant: Ensure consistency of financial data, cost control, efficiency measurement after deployment.
- HR: change Management, internal communications, training, mounted ERP with the work performance of employees.
- Head of the service department: Is the decision ERP can properly reflect the actual operating or not.
5.2 starting from the actual needs, not chasing trends
Many businesses approach ERP implementation because “the opponent had used”, “see other enterprise users,” or entrained concepts such as AI, Big Data, automation comprehensive. This led to the great investment but don't solve the right problem at its core.
From the perspective of commissioning, the most important question before the ERP implementation is not:
“ERP has the features what?”
that is:
“Business is having problems, the most serious in operation?”
For example:
- Commercial business casual “pain” in inventory control and cash flow.
- Manufacturing enterprises often encounter difficulty in planning, progress tracking.
- Business multi-branch often lack data synthesis timely for leaders.
5.3 Select partners deploy experienced industry not only good at technology
In ERP implementation experience, industry-equally important – even more important – technology. A partner to understand the peculiarities industry will:
- Grasp the actual process, not to impose theory.
- Anticipate the risks commonly encountered in operation.
- Advice on how to implement culturally appropriate and capacity management of the business.
For example, ERP for manufacturing businesses in completely different with ERP for trading or services. If partner only good at engineering, but the lack of experience in industry, business, easy to fall into a state have to edit much, prolonged duration, increase the cost of ERP implementation.
The actual value is business, reduce risk, save deployment time to receive solutions close to the business operations practice.
5.4 investment for training, change work habits
ERP only really work when the user is using the correct and regular use. In fact, the resistance to change from employees is one of the biggest causes why ERP implementation does not reach expectations.
Experience operation management shows:
- Training needs associated with daily work, no training, spreading.
- Need to explain to employees seen ERP help them reduce manual work, reduce errors, rather than to “control them”.
- Leaders and middle managers have to be the example in the use of the system.
Enterprise value received is ERP become a part of routine work, help to increase productivity, data transparency, improve efficiency, long-term operation.
6. Lạc Việt ERP – Nền tảng ERP phù hợp với đặc thù quản trị vận hành của doanh nghiệp Việt
In the process of ERP implementation, one of the deciding factors to the long-term effect of the project is the choice platform of ERP in accordance with the peculiarities of management, how to operate your enterprise. As practice shows, not to the ERP system would also respond well requires flexibility in terms of process, legal, accounting and tax, as well as scalable phased development of the business.
ERP của Lạc Việt được phát triển theo định hướng đó: một hệ thống ERP tổng thể, thiết kế dựa trên thực tiễn vận hành của doanh nghiệp Việt Nam, giúp doanh nghiệp chuẩn hóa quy trình, kết nối dữ liệu liên phòng ban và nâng cao năng lực quản trị mà không làm gián đoạn hoạt động hiện tại. Thay vì áp dụng máy móc các mô hình ERP quốc tế, Lạc Việt ERP cho phép doanh nghiệp triển khai theo lộ trình phù hợp, linh hoạt theo quy mô, mức độ sẵn sàng, từ đó giảm rủi ro, tối ưu chi phí, gia tăng giá trị ngay trong quá trình sử dụng.
Với kinh nghiệm nhiều năm đồng hành cùng doanh nghiệp trong các dự án chuyển đổi số quản trị vận hành, Lạc Việt định vị LV ERP không chỉ là một ERP software that is the solution supports business ERP implementation lessons, effective and sustainable.
ERP implementation is not merely invest in a new software, which is a strategic decision that directly affects the way businesses operate in the next several years. When deployed properly, ERP helps business transparent data, optimize processes, reduce dependence on people and improve ability to make decisions based on actual data.
