How to start the implementation of ERP

    How to start the implementation of ERP

    In the last article, I talked about What is an ERP system, as well as in what cases the implementation of this software system will bring real benefits, and what to look for when choosing an ERP. And now I want to talk about how to get practical benefits from an ERP system. And for this, the software product must be implemented.

    I already wrote about the introduction of software products in a series of articles “Implementation of a software product. Features of the work of a business consultant. " And many recommendations from this series of articles can also be applied when implementing ERP. But nevertheless, this system is intended for medium and large businesses, and therefore its implementation has certain features from among those that I did not disclose in previous articles devoted mainly to small and medium businesses. Another important feature of ERP is a multifunctional, complex system with a very wide functionality, and this fact must also be taken into account when implementing.


    The most important question that arises on the eve of the introduction of any software system is “where to start”? If you know how and where to start implementation, and start work correctly, most likely, the process will go without unnecessary difficulties, alterations and conflicts. And the result will live up to business expectations.


    I will also try to talk about how to conduct a project for implementing an ERP system from and to in the following articles. And now I want to talk about the most important thing - the beginning of implementation.


    Different approaches to implementation


    There are several approaches to the implementation of ERP-systems, which I saw in someone else's performance and / or applied in practice. Each of them has its pros and cons, some "pitfalls" and advantages.


    In principle, all approaches to implementing ERP are also relevant for any complex systems, for example, 1C soft starter, 1C ERP, SAP Bussines ONE, ODOO, etc. Let's talk about them in detail.


    Preparation of technical specifications


    ERP-system is a very technological product. And therefore, both developers and businessmen are often tempted to plan the implementation to the maximum even before the start of work. It would seem that everything is logical. With this approach, it is assumed that the technological software system should be as algorithmized as possible. And the implementation process can and should be approached from the point of view of algorithms and a mathematical model.


    How to implement it:


    1. A voluminous technical task is created in which all processes, including the smallest ones, are thought out and described to the maximum.
    2. Under the terms of reference, a work schedule is created.

    It may take months to draw up a similar technical task. I personally saw how the specialist drafted the terms of reference for the implementation of ERP for six months. During this period, he regularly went to the object, delved into all the nuances and entered them into the document.


    From this approach, the benefits are, first of all, developers:


    • Document Terms of Reference will be expensive. A large amount of work is taking place, taking considerable time. And customers usually agree to the high cost of the terms of reference without any questions.
    • Developers receive detailed instructions on the basis of which work can be carried out. And in case of unsuccessful decisions in the signed ToR, alterations will be paid separately.

    The downside of the approach is its volume and complexity. It is impossible to create a comprehensive technical task in which all modules, documents will be provided, all the nuances of future work. The system is multifunctional, and any changes in one module may entail the need to make changes in another.


    Similarly, with errors in the preparation of technical specifications: any incorrect decisions in one module can entail many changes in others. For example, some business process might not be understood correctly, and then during the implementation it turns out that part of the documentation and directories are not needed, but completely different ones are required. Too much information, too high system complexity - as a result, it turns out to be impossible to initially lay down all the nuances and foresee all possible errors.


    In my practice, there was a case when I came to the enterprise to discuss the implementation of a new software product (I was the project manager), and business representatives told me in plain text: “Enough of the technical tasks from us. We already have more of these documents than necessary. ” Indeed, they showed voluminous folders with documents, the solutions of which were never implemented.

    "Partial" implementation


    In this case, they compile a list of the most significant business areas and modules for working with them. On their basis, they make up a certain implementation plan, which is the basis for the start of work.


    In this case, the technical task is also available. As well as the schedule for the work option, where bulk TK is taken as the basis. But here the technical task is not so comprehensive, it is possible to draw up our own technical tasks for different stages of the work. Those. the main document in this case is the Work Implementation Plan.


    For example:


    As the first stage of implementation, we select the Finance and Goods Movement section. This area of ​​work is very important for any company. We deal with the peculiarities of financial movements in the organization, we study the storage and sale of goods. Based on this, we compose a ToR for automation in the ERP of the selected site. And we introduce the necessary functionality for this site.


    At the next stage, we choose another direction, for example, production. And we also work with this direction, plus we take into account the work done (and possible improvements) in ready-made modules related to finance and products.


    The main advantage of this method is realism. It is extremely difficult to cover everything at once. Implementing in stages is much simpler, and usually fewer errors are made. And the results are already visible in the implementation process. I myself most often choose this approach.


    Cons - an increase in time, which the customer can consider as a delay. With partial implementation, the timing of the work can be delayed both for objective reasons and for various reasons related to financing, the human factor, etc. In addition, if the head of the business seeks to get everything at once, he may also not be satisfied with the lack of accurate implementation data (when it is completed, what will be the exact amount, etc.).


    This method of work is very cautious, and most often takes more time than with other implementation options. So, if during the first approach (compilation of TOR) all terms and amounts were calculated in advance, before the start of work, then here all the preliminary figures are approximate. And technical specifications for different stages are compiled during the implementation process.


    Also, with the first method of work, automation of the work of different departments can be carried out in parallel. The client will see automation of accounting, and sales, and warehouse, and production. Here, work is carried out stage by stage. And units are connected to ERP also in turn.


    Agile approach


    In this case, the implementation work begins immediately without any preparatory stage. It would seem unacceptable, ERP-systems are too complex to implement them without first studying the features of the business and compiling documentation. However, in practice I have seen a similar job.


    Some developers, even in the case of ERP-systems, operate on the principle of "start, and then we'll figure it out." According to this approach, a preliminary general implementation plan is created, which is divided into small parts as necessary.


    Most often, a similar method of work is practiced by sellers of "boxed" software products. The reason is that they receive profit from the sale of the “box” in any case, and the introduction for them is only a related service.


    The main advantage of this method is that the implementation work begins immediately after a decision is made. Without long preparation. This is what attracts businessmen. For example, a decision was made - we automate the sales department - they immediately started to work. We decided - we need to transfer the leftovers - they are immediately transferred.


    In principle, a successful implementation on this principle is also quite possible. But it is very difficult and for success it will require a very high level of professionalism of the leader, as well as significant experience in implementing such projects. And even in this case, professionals more often choose other paths. Just because they can reduce the number of errors and overlays, the influence of the human factor. As a result, the options for working on TK or implementation in parts allow you to get the desired result with fewer overlays and alterations.


    Cons - lack of planning for integrated implementation. Here the problems arise for almost the same reasons as in the preparation of a comprehensive ToR: ERP is a complex integrated software product, and errors in the implementation of one module can affect the operation of another module. But if in the first case such problems arise due to an attempt to foresee too much, then here - due to the lack of planning. Those. when implementing, specialists solve short-term tasks without thinking that at the next stage they will need data and documents from the current module to organize the work of another unit.


    Another minus - with this approach, the involvement of company employees in the implementation process is much lower than with any of the above. This negatively affects the determination of employees to take part in testing and switching to a new system, and also provokes sabotage of the use of new tools.


    “Little by little, but all at once”


    Another approach to implementing ERP, I personally call "Little by little, but all at once." This option may also be a successful and convenient solution. I personally used it more than once. And if, during partial implementation, they take one or two modules, fully configure them, and only then start working on other modules, then in this case the work is carried out gradually, there is no such clear restriction - only this module and no others.


    With this approach, the first step is also to draw up a project plan. In this regard, the main stages are not modules (one, then another, etc.), but some types of work that may affect all modules at the same time or selectively some of them. At the same time, for each stage, approximate terms and cost are indicated.


    In the most general case, a similar plan is as follows:


    1. Development of technical specifications.
    2. Execution of work according to the terms of reference ... This item can be detailed, the execution of work is then divided into several stages.
    3. System testing.
    4. Commissioning.
    5. Training.
    6. Completion (delivery) of the project.

    A similar plan is compiled separately for each module, which makes it possible to specify for the customer the cost of each stage of work, as well as most accurately determine the possible time frame. At the same time, the customer must necessarily stipulate the possibility, during the implementation process, if necessary, to change some types of planned work by others.


    This method is more convenient and realistic than drafting a technical task, since the overall technical requirements for the entire project will require 2-3 months of work or even more, and it will be very difficult for the customer to study the resulting volume document with all the details.


    Here the customer sees a plan with terms and amounts for each stage. And terms of reference for each stage of work are created separately, they are small and do not require significant time costs. It is also advisable to name each of the documents in an understandable way. For example, “Accounting and Finance” or “Sales Department”.


    The advantages of this approach:


    • The customer immediately sees the whole project. With the most accurate terms and cost, as much as possible before the start of implementation.
    • The contractor clearly determines the budget of each stage and issues an invoice for payment. At the same time, the invoice amount does not raise any questions, which allows you to work productively without being distracted by the substantiation of the invoice or the calculation of the number of hours spent in fact.

    Cons of the approach:


    • The customer must carefully select the contractor so that the project manager understands the implementation features of each module at the proper level. Otherwise, the calculations in the plan will not be accurate enough. The budget can unexpectedly increase, the time frame is stretched, i.e. the main advantages of the approach will be lost.
    • The contractor will need a significant number of highly qualified personnel to meet deadlines and engage in different modules in parallel. Those. a small team will not be able to implement this approach.

    An important feature of planning: When calculating the budget, regardless of your experience and accuracy of the assessment, you should “lay in” an additional amount in case of unforeseen situations. The optimal size of this amount is 30% of the cost of the planned work. This can be called the agreed planned deviation of the project cost. These funds may be required in case of any difficulties - organizing data exchange with a program that does not support the existing API, finalizing basic directories, difficulties in transferring data, implementing functions necessary for the work, which for one reason or another could not be foreseen in advance, etc. .d.


    These 30% are taken into account in the budget, but are paid to the contractor only if necessary. If you were able to meet the basic budget figures without a “reserve” when implementing the project, great! The customer will be grateful, and the satisfied customer is both new orders and the best word-of-mouth advertising (recommendations to friends and acquaintances).


    If you still need to use the reserve, it is very important to correctly and clearly justify what kind of work this money was needed. It is necessary to include this amount in the budget so that there are no unpleasant situations when the budget increases, and the customer does not have such an expense item.


    What modules to start with?


    The number of modules that ERP systems can offer often raises questions about where to start, because there are a lot of opportunities, as they say, "eyes are running wide." I recommend starting with the most critical areas for the company’s work and related modules:


    1. Finance and mutual settlements. (Do not confuse budgeting - this module can and should be implemented later, it relates to planning, and not to the current critical work).
    2. The movement of inventory items (inventory): storage, sale, receipt. It is very important that inventories are taken into account correctly, an inventory is usually carried out before the transfer of balances, then the balances are transferred, after which work is already carried out only in the new system.
    3. Accounting. Implementation of the accounting module or organization of data exchange with the accounting system. The state does not forgive anything, and for any violation, regardless of intent, punishment is imposed. Therefore, accounting and tax accounting is also a system critical for the operation of any company.

    Sometimes I hear objections that a company may have its own nuances, for example, in connection with high staff turnover, HR is the most critical. In fact, most likely, there is some kind of automation of HR in the company at the time the ERP implementation began. And no matter how critical the business of this unit is for business, for some time personnel management can be carried out in the system that is. And if certain errors are detected in the process, this will be a minus, but not the most critical for the existence of the company.


    Also, the project department or marketing for some time will be able to work in the usual mode and keep records autonomously in the system that they used before.


    At the same time, strict accounting and control over the movement of core values ​​(financial and material), as well as the absence of errors in accounting and tax accounting, are the “pillars” without which no company can exist.


    I hope that the material about where to start implementing ERP, and what methods of working with this system are practiced, was useful to you. In the following publications, I will tell about my personal experience in implementing ERP, share information about errors that should be avoided, as well as what should be paid attention to during the implementation process and how best to build this work so that the transition to ERP is as effective as possible.



    Also popular now: