ERP implementation in 8 steps: How to get it right

Who should be involved in planning an ERP implementation?

Implementing an ERP system affects every department, so planning should involve not only leadership, but especially department heads. The better the collaboration across business areas, the smoother the implementation. These people and groups play a central role:

Executive management

Support from executive management is critical to project success. They are responsible for setting the overall strategy, defining project goals, and making sure enough resources are available. Leadership must also be ready to actively drive change in the company — including the ERP rollout.

IT department

The company’s IT team plays a central role in the technical ERP implementation. It is responsible for integrating the ERP software into the existing IT infrastructure and making sure it runs smoothly. IT must confirm in advance that the required hardware and software are in place and that the system meets the company’s security requirements.

IT also works closely with the ERP vendor’s support team and any implementation partners to resolve technical challenges.

Business units and key users

Business units are the primary users of the ERP software and should therefore be brought in early in the implementation. People in these departments have the domain knowledge needed to define requirements for their area.

In particular, key users — experienced employees from each department — should take part in selecting and configuring the ERP software. They act as a link between the parties implementing the software (the IT department and/or the implementation partner) and the end users.

External consultants or implementation partners

Your internal IT team can handle the ERP implementation if it has the necessary expertise. Alternatively, you can bring in an external consultant or implementation partner. They specialize in ERP systems and bring valuable expertise. They can support your company in selecting the right ERP system, configuring and implementing it, and training employees.

Need help from an ERP specialist? Nexova Dynamics can handle ERP implementation for your company.

How do I implement an ERP system?

To implement an ERP system successfully, you need a project plan that covers every step of the implementation. The rollout can be divided into several phases, which we outline below.

Step 1: Preparation and analysis

The first step in implementing an ERP system is analyzing your current business processes. This phase aims to identify weaknesses in existing workflows and spot opportunities for improvement. A thorough current-state analysis is the foundation for defining requirements for the new ERP system.

Relevant departments should be involved in this phase so every important process is considered. Skipping a thorough analysis here can cause problems in later phases, and you may discover that the system you chose does not actually fit your requirements.

Step 2: Define requirements

Once the as-is analysis is complete, you can define the exact requirements for the ERP system. Include both functional aspects — such as support for specific business processes — and technical aspects, such as interfaces to other systems or particular security requirements.

Spell out the requirements clearly and precisely in your requirements document so the new system covers the functionality you need. Vague requirements can lead to expensive changes after implementation.

Step 3: Select the right ERP system

Before you can implement a system, you first have to choose one. With the as-is analysis done and requirements defined, compare different vendors and their ERP solutions. The market offers a wide range of solutions for different industries and company sizes. When selecting a system, consider the following factors:

• Functionality: Does the system cover all required business processes?
• Usability: Is the system intuitive and easy to use?
• Scalability: Can the system grow with the company?
• Cost: What are the license, implementation, and maintenance costs?

For more help selecting an ERP system, see our articles Selecting the right ERP system and 10 popular ERP systems in Switzerland.

Step 4: Configuration and customization

Once you have chosen an ERP system, the configuration and customization phase begins. Here the system is adapted to the company’s specific requirements. That can include adjusting standard modules or developing new features.

In this phase it is important to work closely with key users so the system meets end users’ needs. Insufficient customization can leave the system inefficient or hard to use.

Step 5: Employee training

Ultimately, the success of an ERP implementation depends on the people who use it. Thorough training helps ensure that employees can use the system effectively. It should start early and include everyone who needs it. Alongside end-user training, key users and IT staff should receive specialized training so they can adapt and optimize the system on their own when needed.

Step 6: Testing and data migration

Before the ERP software goes live, a thorough testing phase is required. The goal is to confirm that every function works as intended and that no defects remain in the system. Test a range of scenarios and edge cases to identify potential issues before go-live.

In parallel with testing, legacy data is migrated into the new system. Data migration is a critical step, because faulty or incomplete data can cause problems in day-to-day operations. Data must be carefully reviewed and cleaned before it is imported into the new system.

Step 7: Rollout and go-live

The rollout marks the transition to live operation. At this point all business processes move onto the new system, and your company begins using the ERP in daily operations. Alongside data migration, go-live is another critical phase, because errors or problems can affect the business immediately.

All employees should be well prepared through prior training, and there should be a clear plan for handling issues during go-live. Close contact with your external consultant or implementation partner can help you respond quickly when problems arise.

Step 8: Follow-up support

After go-live, the work is not finished. After implementing ERP software, smaller adjustments or bug fixes are usually still needed. In the follow-up phase these issues are addressed, and the system is continuously monitored and optimized.

A long-term support agreement with the ERP vendor or implementation partner is advisable so the system is updated and maintained regularly. Support is particularly important when the company grows or business processes change. Many ERP vendors include free support as standard.

Flexibility during the rollout: Why a phased approach helps

Once the ERP system has been selected, it often makes sense to introduce it in smaller, manageable steps. Instead of implementing the entire system at once, many companies benefit from rolling out the software gradually and collecting direct feedback from users.

This flexible approach helps ensure that your employees’ actual day-to-day workflows are considered early. Adjustments or improvements can be made quickly before the full system goes into production. That reduces the risk of errors that would otherwise surface only after a complete rollout, and it raises user acceptance because people are introduced to the new ways of working step by step.

There are situations, though, where a phased rollout is harder because of technical or organizational constraints. In those cases we work with you to find the best way to keep the rollout as flexible and smooth as possible.

Let’s talk about how we can plan a rollout that works for your company. Contact us for a no-obligation consultation — we will help you find the right solution for your needs.

How long does an ERP implementation take?

Company size, the number of departments involved, and the complexity of business processes have a major influence on how long the rollout takes. A small company with simple processes and few departments can implement an ERP solution in a few months, while larger companies with more complex requirements often need one to two years.

External factors also play a role, such as resource availability, how quickly decisions are made, and willingness to adapt existing processes.

So the duration of an ERP implementation varies with project scope and company structure. Close collaboration across departments and clear communication can still help speed up the process.

What does an ERP implementation cost?

The cost of introducing an ERP solution can vary widely — just like the project timeline — and depends on many of the same factors: company size, system complexity, and how many customizations are needed.

Software and license costs

In an ERP project, software and license costs depend on the number of users, the system’s feature set, and the licensing model you choose. Many ERP vendors offer both purchase and subscription licenses. Purchase models often require a high upfront investment, while subscription licenses — as with cloud-based ERP solutions — mean a lower upfront investment but ongoing monthly costs.

Implementation costs

Implementation costs combine consulting and customization costs with the cost of integrating the system into the existing IT landscape. Consulting fees vary with project scope and how complex the customizations are. Companies should not underestimate this work, because insufficient consulting or customization can cause problems later.

Training costs

Employee training is another important cost factor. Depending on company size and the number of users, training can take several weeks and should be treated as an essential part of the implementation process.

Ongoing maintenance and support

After the ERP solution goes live, maintenance and update costs may apply. These help keep the system running smoothly and ensure it can adapt as business requirements change. With cloud-based ERP solutions those costs often fall away, because the vendor handles maintenance and updates.

Support fees can also apply. But be careful: there are major differences between vendors. Many ERP products offer users free support.

Cost pitfalls and hidden work

When calculating costs, also include a contingency for unexpected work. That includes unforeseen customizations, extra training, or support services. A detailed, realistic cost plan is essential if you want to avoid budget overruns. Avoiding the common mistakes discussed below can also help prevent unnecessary costs.

Avoid common mistakes in ERP implementation

An ERP project is complex and comes with challenges. Some mistakes occur again and again, but avoiding them can help keep your project on schedule and on budget.

Missing support after go-live: The project does not end at go-live. You need a structured support process so you can respond quickly to problems and minimize disruption to day-to-day operations. Discuss support options with the ERP vendor before you introduce the software.

Unclear goals and requirements: One of the most common mistakes in ERP implementation is a lack of clearly defined goals and requirements. Without clear goals you cannot tell whether the system meets the company’s needs, and you cannot measure project success. Define your requirements and goals clearly and document them in a requirements document.

Poor communication and weak employee engagement: Project success depends on collaboration across every department. If employees are not involved enough in the ERP implementation, or if communication between departments is weak, problems can arise. Keep all relevant stakeholders regularly informed about project progress.

Choosing the wrong ERP: If you discover after implementation that the software is not a fit for your company, you face high costs and inefficient processes. Here again it is essential to analyze your requirements thoroughly before the project and compare vendors and systems before you decide. An external consultant can help with that decision.

Underestimating configuration and testing: Incomplete customization can leave the ERP system underused, and inadequate testing can cause serious operational problems later. Plan enough time and resources for these phases.