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The introductory session of the ALM for SAP S/4HANA Cloud series provided just a general comparison of SAP Cloud ALM and SAP Solution Manager. In this session, Cay will take a closer look at how the ALM platforms support your SAP S/4HANA Cloud or RISE with SAP implementation project.
You will understand the different approaches for designing and building your business processes, for managing testing, and for controlling technical change. At the end of the session, you will have a better understanding of the implementation capabilities of SAP Cloud ALM and SAP Solution Manager.
This will be a good foundation for your choice of the right ALM platform for you.
This session is part of a series of sessions on ALM for SAP S/4HANA Cloud. Please feel free to join or watch the recording:
1. ALM for SAP S/4HANA Cloud – SAP Cloud ALM or SAP Solution Manager? (Link to join and replay: https://youtu.be/M7k5m2svcRE
2. Implementing SAP S/4HANA Cloud – SAP Cloud ALM or SAP Solution Manager? (this session)
3. Operating SAP S/4HANA Cloud – SAP Cloud ALM or SAP Solution Manager? Wednesday, March 1st, 2023, 5pm CET / 11am EST / 8:00 PST (Link to join and replay: https://youtu.be/tkhvM_zou7Y)
4. Services & IT Service Management – SAP Cloud ALM or SAP Solution Manager? Wednesday, March 8th, 2023, 5pm CET / 11am EST / 8:00 PST (Link to join and replay: https://youtu.be/_6R-BDUVF7U)
Useful links related to this session:
• Blog series: ALM for SAP S/4HANA Cloud: https://blogs.sap.com/2022/05/04/alm-for-sap-s-4hana-cloud-sap-cloud-alm-or-sap-solution-manager/
• Update: ALM for SAP S/4HANA Cloud: https://blogs.sap.com/2022/12/02/update-alm-for-sap-s-4hana-cloud-whats-new/
• SAP Solution Manager, private cloud edition: https://blogs.sap.com/2022/12/09/what-is-sap-solution-manager-private-cloud-edition/
• ALM Community: https://community.sap.com/topics/application-lifecycle-management
SAP Cloud ALM
• SAP Cloud ALM home page: https://support.sap.com/cloud-alm
• Demo: SAP Cloud ALM for Implementation: https://www.youtube.com/watch?v=7Rf0pLlkvc0
To learn more about SAP User Groups go here: https://www.sap.com/about/customer-involvement/user-groups.html
Visit the SAP Knowledge Transfer for User Groups page for the all topics, expert content and more:
https://webinars.sap.com/sap-user-groups-k4u/en/home
Check the schedule of all SAP User Group upcoming sessions and events:
https://webinars.sap.com/sap-user-groups-k4u/en/upcoming
SAP Cloud ALM is an application lifecycle management offering for cloud-centric customers. It provides extensive implementation and operations capabilities for cloud solutions. SAP Cloud ALM helps enterprise manage, monitor, run and optimize SAP Cloud solutions proactively. SAP Cloud ALM is an essential how-to solution for managing all aspects of any SAP Cloud solution. It enables businesses to navigate through initial implementation (and additional / future implementations like SAP SuccessFactors modules), to going live, to monitoring integrations, to running and continuously optimizing instance. So lets enable your business to get started.
As a Cloud Customer, SAP Cloud ALM can be used at no extra cost, as it’s part of the Enterprise Level Support Contract. There is no need for any additional hardware, there are no configurations to make and you won’t need a partner to help set it up. To activate SAP Cloud ALM just follow the steps within this mission.
Prerequisites: The S-user who requests SAP Cloud ALM receives permissions that are required for administrative tasks in the SAP BTP cockpit and in SAP Cloud ALM. In addition, the S-user is added to the Identity Authentication service (IAS) tenant.
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Join us for our SAP Community Call with Stefan Batzdorf, SVP & Chief Technology Officer SAP S/4HANA, SAP SE and Thorsten Düvelmeyer, SAP Senior Expert Consultant Enterprise Integration & Cloud Architect at NTT DATA Business Solutions.
Stefan will explain how a modern, modular, and flexible cloud architecture acts as foundation to become the market leader in the growing public cloud ERP market. This architecture strategy of SAP S/4HANA Cloud builds on modernization of the core, modular deployment options including cloud-native services, and in-app and side-by-side extensibility. As integration in a modular environment is key, SAP released the Suite Qualities to achieve superior SAP2SAP integration.
Thorsten will explain what Suite Qualities mean in a modular and flexible ERP and will show potential implementations for some of them. He will emphasize, why these are important for your future landscape, independent of whether you only implement some apps in the BTP or go for an SAP S/4HANA Cloud implementation for all your processes.
Start today to be prepared for your SAP landscape in the future!
Let us know whether you’ll be attending this call: https://groups.community.sap.com/t5/sap-community-calls/build-up-your-suite-qualities-today-for-a-modular-and-flexible/ec-p/218554#M133
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As the world is feeling the pinch—or to some, the punch—of the Covid-19 pandemic, SME owners are left looking for ways to improve their existing processes while keeping their heads above water. Everyone is riding the same storm out, just in different boats.
Thankfully, SME owners aren’t sitting in their boats alone as the Singapore government is right beside them equipping them with the tools and support to get through this.
There are many different grants that the Singapore government is able to give to SMEs to help them navigate trying times. These grants include the likes of the Capability Development Grant (CDG), the Innovation & Capability Voucher (IVC), the Productivity-Max (P-Max) Programme, and the topic of today’s article: The Productivity Solutions Grant PSG.
Today we’ll be discussing what the PSG grant is, its eligibility requirements, how to apply for it as well as providing the answers to some frequently asked questions. If this sounds like something you may be interested in, we urge you to keep reading so you can find out how this grant can help your business.
What is Productivity Solutions Grant (PSG)?
The Productivity Solutions Grant, also known as the PSG, is a grant that enables companies to adopt IT solutions and equipment with the aim of increasing their company productivity & streamline their processes.
A range of solutions to help better your business are on offer. These solutions can be applied to all sorts of industries and all kinds of areas including but not limited to customer management, quality assurance, data analytics financial management, HR management & more.
All solutions have been pre-scoped by the National Environmental Agency (NEA), Singapore Tourism Board (STB), as well as Enterprise Singapore and various other governmental agencies.
What makes this grant in particular so popular is that it has a maximum funding support level of 80%. The start and end date for this grant are from 17 April up until 31 December 2020 initially. But it was recently been extended from 30 September 2021 to 31 March 2022.
What are the Requirements for Productivity Solutions Grant (PSG)?
For the most part, the eligibility requirements for the Productivity Solutions Grant are fair and easy to meet. Any business that is registered and operating in Singapore that intends to purchase, lease, or subscribe IT solutions or equipment within Singapore is eligible.
For selected solutions, only SMEs with a minimum percentage of 30 local shareholding and a Group annual sales turnover of S$100 million or less or less than 200 employees will be eligible.
Remember that TWM is a pre-approved PSG grant vendor for both IT solutions as well as equipment, so we’ll be able to answer your questions and provide assistance in every step of your technology journey.
Do contact us if you need PSG grant for your business.
How to Apply for Productivity Solutions Grant (PSG) for my Business?
If your business meets the specified requirements and it sounds like the Productivity Solutions Grant is the logical next step for your business to take, you’ll need to know how to apply. Unlike applying for other grants, the Productivity Solutions Grant application process is straightforward. Here’s what you need to know.
Firstly, you’ll need to identify relevant solutions that are able to satisfy your business needs by browsing through the list of supportable solutions.
Once you’ve identified the solutions that you’d like to take advantage of you’re required to submit a quotation request to vendors that provide the equipment and IT solutions you need. Get the quotation from the vendor and move on to the next step.
Finally, you’ll need to register your company and set up a CorpPass account in order to apply for the grant. The registration process is quick and easy, simply state whether you’re the Registered Officer, the Admin or the User & follow the prompts.
After registering, follow these five simple steps on the Business Grant Portal (BGP).
Step 1: Click on the “Get New Grant” button.
Step 2: Answer three questions pertaining to your project.
Step 3: Fill out the application form and click on the “Submit” button.
Step 4: Track the status of your application.
Step 5: Accept the Letter Of Offer.
Final Thoughts
If your company is one of the companies keen to embrace technology and reap the rewards, you should seriously consider applying for the Productivity Solutions Grant as so many other businesses have done.
Fill in the simple online application, submit it, and get the funding you need to take your business to new heights. We are living in the digital era and our businesses need to take advantage of the relevant solutions that best suit and work for our needs.
Add “business transformation” to the top of your to-do list by applying for your PSG grant today or risk being left behind in the dust of your competitors.
We hope you found this article informative and that your next steps are evident. Don’t forget to share this information with others who may also find it helpful.
FAQs about IMDA PSG Grant
1) Can non-SMEs be supported under PSG?
Applicants applying for ESG’s PSG have to be SMEs, non-SMEs will not be supported.
2) How do we determine if an applicant is “local”?
30% of ordinary shares (ultimate individual ownership) has to be held directly or indirectly by Singaporeans/PRs.
3) Does the applicant have to be registered in Singapore?
Yes, the applicant has to be registered in Singapore to be eligible for PSG.
4) Can companies apply for PSG after signing a contract with the vendor, or making payment?
No, please note that applicants must apply for PSG before they have:
– Made any payment to a supplier, vendor or third party in relation to the purchase/lease/subscription of the IT solution or equipment
– Signed any contract with a supplier, vendor or third party in relation to the purchase/lease/subscription of the IT solution or equipment Otherwise, the application will be rejected.
5) Is there a cap to the PSG approved grant available to companies?
For applications supported by ESG, there is a grant cap of $30,000 per entity per year (1 April to 31 March). Example: If an applicant utilises $30,000 in PSG grant monies by Dec. 2018, the applicant would only qualify for PSG again from 1 April 2019. The equipment or IT solution may be subjected to further cost caps.
6) What are the supportable cost?
Unless otherwise stated, only the actual purchase/lease/hire purchase cost of the equipment or IT solution is supportable, and excludes other related administrative fees/charges, e.g. delivery fees, installation.
7) How many PSG grants can a company apply for?
Supportable applications are:
– the FIRST purchase of the Solution by the applicant (single device/unit or multiple devices/units);
– subsequent purchase of the Solution to be deployed at a different location This means that if the applicant applies subsequently (i.e. after the first application) for the same solution to be deployed at the same location, this application will be rejected.
8) Can an applicant apply for multiple solutions?
There may be 2 ways to interpret this query:
a) Multiple types of solutions
Each application in the Business Grant Portal (BGP) for PSG is only for one type of solution. If an applicant would like to apply for multiple types of solutions e.g. fleet management IT Solution and enhanced POS IT Solution, the applicant would have to submit an application per solution type.
b) Multiple devices/units/packages of the same solution
Each quotation submitted by the solution vendor to the applicant should indicate if the cost of the package is for 1 device/unit, or 5 devices/units, or 10 devices/units etc. If an applicant would like to apply for multiple devices/units:
For IT Solutions, applicants would not be able to indicate in the application form the number of solutions to be purchased. Applicants would have to indicate this via the total cost (e.g. number of solutions to be purchased multiplied by the cost of 1 solution). The quotation from the solution vendor should also indicate the number of devices/units the quotation is applicable for.
For equipment, applicants would be able to indicate the number of pieces of equipment to be purchased, if applicable.
Note that if the package is for 5 devices/units, the applicant would only be able to purchase 5/10/15 etc. devices/units, i.e. in multiples of 5. The applicant would not be able to prorate the cost of the package or package support for 4 devices/unit.
9) Can applicants qualify for PSG if they indicate “yes” to the question “does your business currently have this solution”?
The application would be rejected if the current solution has been supported under PSG to the same location. Deployment to a new location is allowed.
10) Can applicants opt for IT solutions or Equipment other than the pre-approved solutions?
This is not allowed for applications to ESG. Applicants have to select their solutions/equipment (and solutions vendor for IT Solutions) from pre-approved lists.
11) Can applicants purchase Equipment from a vendor online via e-commerce platforms both locally or overseas?
Yes, this is allowed. However, applicant should ensure that the equipment meets the required specifications and purchase is not made prior to the application. Approval is subjected to assessment. Proper claim documentation such as the certificate of origin, invoice, receipt, delivery order, and any other supporting documents should be furnished at point of claims.
12) Can applicants switch solution vendor?
No, this is not allowed. If an applicant intends to change the solution vendor, they would need to withdraw the previous application and submit a new one.
13) Can the Equipment or IT Solution be used overseas?
The applicant’s purchase/ lease / subscription of the Equipment or IT Solution must be used in Singapore.
14) How long must the purchased solution be held for?
The holding period for the equipment or IT Solution is 1 year from the date of final claim disbursement.
As of 2 April 2018
15) How many claims can a company submit per application? Can claims be disbursed before the project has been completed?
There can only be one claim per application. Disbursements can only be made after all the following have been achieved:
a) Claimant has purchased/leased/subscribed to the solution; and
b) Claimant has used the solution; and
c) Claimant has paid for all expenses claimed; and
d) Claimant has submitted all claim documentation
16) How long will it take for an applicant to receive the outcome of their application?
It will take approximately 4-6 weeks, provided that all the required information has been provided at the point of application.
17) How long will it take for an applicant’s claims to be processed?
It will take approximately 4-6 weeks, provided that all the required information has been provided at claims submission.
18) Can applicants submit concurrent applications?
Yes, it is allowed.
19) What is the process for applying for PSG?
An example of the application flow would be as follows:
a. Explore solutions
b. Get quotations (unsigned)
c. Apply for PSG via BGP (upload all necessary documents)
d. Await Approval (for assurance before commencing project)
e. Awarded PSG
f. Purchase solution and implement project
g. Used the solution, paid for all expenses
h. Submit claim (with necessary documents)
The current buzzword for any company wishing to improve its business functions is enterprise resource planning (ERP). The ERP software market has shown significant global demand since its development in 1992.
Not only are ERP systems the sure way to improve business performance, but their integration with current cloud applications makes it’s very easy to use. However, if you’re considering switching over to an ERP system, it might be challenging to find the right one.
Reviewing the current ERP statistics is an effective way to make the most beneficial decision for your organization. Accurate statistical information provides you with the data to establish what other organizations have done wrong, what can be improved, and what information you should use to get the most out of your software selection.
In today’s article, I’m going to cover some of the most important ERP statistics that will give the insight you need to make the most informed decision.
Why ERP Statistics Are Important?
ERP systems were originally developed for use in the manufacturing industry. ERP had the sole purpose of streamlining business processes in manufacturing companies. However, market trends show that in recent years ERP software has become essential for all types of companies and organizations.
Why then is it important to consider past and current ERP statistics when selecting a new software system for your company? Simply put, ERP statistics show the different facets of how this software platform is implemented and received in various organizations.
How Successful is ERP Implementation?
A full 85% of companies surveyed projected a timeline for ROI and 82% of those who had projected it achieved it.
The ERP software market was successfully valued at $38.81 billion in 2018. Added to that, the global ERP software market is projected to reach an impressive $78.40 billion by 2026. Several factors need to fit into place before ERP implementation can be regarded as being successful.
Some of these factors include cost-effective user training, and engaging user experience and data accuracy within your organization.
The ERP implementation statistics that can help you determine the market trends’ effectiveness are listed below:
A recent survey of IT decision-makers has shown that 53% agreed that an ERP system is not only an investment but a priority.
95% of businesses have shown an improvement in business processes. This is largely due to a faster, more reliable, and user-friendly system.
An independent study of companies who have implemented ERP shows that 82% achieved ROI within their expected time frame. When systems are operating more efficiently, it becomes easier to achieve set goals at the required time frames.
The survey also shows that midsize companies with $100 million to $250 million revenue experienced the speediest implementations averaging 6.6 months. Larger companies with an excess of $25 billion revenues took longer at 12.35 months.
62.7% of companies making use of an ERP system have selected Cloud ERP above on-premise software. Cloud ERP also shows a saving in HR expenses as some of the business functions can be replaced by AI and cloud storage.
What Are The ERP Obstacles?
Enterprise resource planning (ERP) isn’t without its challenges. Like any other acquired data system, ERP, if not applied correctly can result in serious financial costs to the organization.
It’s important to review the statistics relevant to the obstacles of ERP because this will give you an idea of how often something can go wrong. By knowing what other organizations have struggled with will provide you with the information necessary to avoid similar problems and obstacles.
Some of the statistics to consider in your quest to have an objective view of ERP implementation include the following:
When it comes to budget calculations, 65% of companies require additional modifications to improve efficiency and usability. Unfortunately, companies only realize this after the implementation process has started. In some instances, the budget can’t be amended and this results in a delay of the whole project.
Crucial Factors to Ensure Successful Implementation
Since successful ERP implementation is critical to any organization’s success, the factors necessary to achieve this should be given their due diligence. So, let’s have look at the most important points to consider.
Project scope: The first step is to define the scope of your planned project. Set up business goals and establish if the system will help you achieve these goals.
Vendor Choice: When you’re selecting the right vendor for your project, it’s important to choose one that will give you the best value for money. Your vendor also needs to provide you with the necessary backup service and support needed before, during, and after the implementation process.
Long-term: Invest in an ERP system that provides the flexibility to accommodate future growth. Consider the financial impact of upgrades and add-on features that will be required to allow your system to grow with your business needs.
Efficiency: The workflows and best practices of the ERP system should be easy to adapt to. Converting your current business flow to the system will be more complex and time-consuming. It’ll be easier to find a system that is similar and then convert it to that business process. The system you choose should be efficient and user-friendly.
Training: Ensure that efficient training programs are put in place to facilitate change management. Employees should “buy-in” to the new system as that will make the transition period much easier. Training should be job-specific so that each employee can perform at their best.
Customization: While customization makes it easy to adapt any system to your industry’s particular needs, it’s important to remember that upgrading customized systems can be costly. If you need to customize any parts of the system, factor the costs into your initial budget.
Project experts: It’s important to team up with a system expert that has advanced skills and experience in the system you’ve selected as well as the industry the program needs to work for. You’ll also need a project manager to oversee the project and provide the necessary IT support when the system is in its implementation stages.
Constant communication: It’s important to communicate all the decisions concerning the project and its implementation process. Keeping employees informed will keep them motivated and engaged. It’ll be easier for staff to maintain enthusiasm if they continuously feel like they’re part of the process. This will also encourage them to learn as much as they can in order to become familiar with the system. It should guide them in finding solutions to problems they might encounter when using the different applications of the system.
Reasons Why ERP Could Potentially Fail
Knowing and understanding the reasons that could cause an ERP implementation to fail will save your organization a considerable amount of money. Understanding the notification frequency lifecycle state (the stages of your implementation program) will help you guarantee you have the right people, training, and budgets in place.
Some of the reasons ERP implementation could fail can include:
Failure of organization employees to embrace change: This happens when employees are incorrectly informed and trained regarding the process of the new ERP system.
Lack of commitment by necessary stakeholders: When stakeholders fail to accurately identify business needs it becomes difficult to align the ERP system to the expected business practices. The initial stakeholders might not have the necessary commitment to see the project through to the end. This could be because the process takes longer than expected or they lack the skill to deal with the obstacles.
Inadequate or lack of capable project managers: This happens when organizations choose to handle the implementation of the platform by using only their own IT employees. It’s important to team up with an ERP implementation partner who has experience in the different stages of the process. Project managers will have insight into the ERP market, network access, and product development.
Inability to align the new ERP system with the proposed business processes: When industry trends haven’t been considered it might be difficult to align the old system to the new business applications.
Completion and implementation goals aren’t set realistically: Eager business owners might not consider market statistics or available data analytics to set up a realistic date for the various implementation processes. Provision might not have been made for potential system issues or training obstacles.
Inadequate budget set aside for complimentary software or upgrade applications: This happens when the organization requires additional software during the implementation process or future upgrades that require the system to function efficiently. It’s generally estimated that about 64% of all ERP conversion projects use more than their allocated budgets.
IT department employees overburdened with continued issues: When the project hasn’t been planned in advance with trained project managers, the burden falls to the IT department. Essentially, the project scope might have been greatly underestimated.
System requirements don’t match the system functionalities: This usually happens when the software selection wasn’t done correctly. A proper review of the organization goals and requirements might not have been done correctly. This then results in a mismatch between what is required and what can be produced.
How Important is Cloud Technology in ERP Software?
Cloud technology is the new catchphrase around upgrading your traditional software programs. This upgrade has made its way into current ERP systems as well. Cloud platform services are exponentially improving the efficiency of organizations investing in ERP software.
Not only are cloud subscriptions much cheaper, but they’re also relatively easier to install. Subsequently, they don’t require the traditional IT infrastructure which saves the organisation costs on the employment of IT consultants and employees.
Some interesting statistics surrounding cloud-based ERP include:
Researchers estimate global cloud app expenditure could reach $226.9 billion by 2022, making this a huge chunk of the market size. Investing in a cloud-based ERP system should be on every organisation’s shortlist to consider.
It’s also expected that 83% of all Enterprise Workloads will be uploaded to the cloud by 2021.
On average, 42% of organizations use multi-cloud. Not only does this aid them with faster customer data recovery but it also enables companies to have more cloud space.
The average organization places 41% of its customer information in a private cloud. Many regard this as an effective customer management system.
What’s New With ERP Software in 2021?
ERP software systems are showing extensive market growth for one simple reason. ERP systems are streamlining their processes and making their applications more user-friendly. In addition to a faster, simpler system, they’re providing more concise and accurate enterprise data.
Unlike older ERP systems, more advanced platforms are offering customizable features. This makes the system easy to be used across different platforms and sectors. How exactly are these new features affecting the organizations using them?
The usage statistics speak for themselves.
On average, 43% of market leaders are currently looking for new and upgraded technologies in their ERP systems. Not only do they want systems to be easier to upgrade but faster to operate.
A staggering 80% of IT developers firmly believe that a considerable amount of ERP processes can be replaced by AI or machine learning. This will considerably reduce staff costs and simplify processes, enabling your organization to provide a strong best practices policy.
Conclusion
A very positive and effective factor of an ERP system is that it streamlines the organization by joining all the various business platforms. Business efficiencies have never been easier to achieve.
As an added incentive to the ERP software, the inclusion of artificial intelligence facilitates the process of turning your system into effective business solutions. The more developed ERP systems allow the system to advance and grow as your business does, making it significantly easier to reach business goals.
Applying the statistics we’ve covered in this article will enable you to make more informed decisions about the type of ERP system needed for your organization’s continued success.
Are you one of the many companies that’ll be implementing a new ERP software solution in the coming months? Enterprise Resource Planning—ERP as it’s often referred to—is a software solution that automates and integrates all your business processes into one user-friendly platform.
Essentially, implementing a new ERP system is the arduous process of changing all your companies’ business processes. ERP implementation requires strategic planning, testing, and eventually launching the software to become your central business model.
Table of Content
What is ERP Implementation?
ERP implementation can be defined as the process involving the installation of relevant ERP software as well as the migration of your company’s financial data to the new system. It also involves the training of appointed users and access configurations. Considering all the various deployment options of an ERP system is also dependent on successful testing.
Understanding the ERP Implementation Process
Once you have decided to convert your company’s current business model to include an ERP system, the next step on the agenda will be implementation. ERP implementation can be defined as the process that examines current practices and converts and improves these business processes to the new ERP software.
The processes that are covered by ERP implementation include the following:
Data migration as well as cleansing and removal of old redundant data
Change management through constant interacting with users
Testing of software and all related applications
Strategic planning of future maintenance of the new software
Training users on the various software functionalities
To get a more concise view of the actual ERP implementation methodology, I’ve summarised the process into 10 easy steps.
Step 1: Choosing the Right ERP Vendor
Purchasing an ERP software system is a large endeavor. Not only does it require a considerable amount of money, but it also consumes a lot of time, effort, and training. As far as your business is concerned, it’s an investment and should be treated as such. Currently, SAP and Sage are the second and third biggest ERP software suppliers respectively.
With this in mind, you might be asking yourself how you can guarantee that this investment into your company’s future pays the required dividends, both short-term and long-term. The simple answer is to ensure that you partner with the best ERP software installation expert in your specific industry.
But, with so many companies offering the same product how do you know which vendor will be the right one to select? Which vendor will offer you the most professional services? Here are a few factors to consider when selecting the ERP vendor that’s best suited to your business. This will prevent you from wasting time and resources.
Industry-Specific Knowledge
ERP software is not a “one-size-fits-all” purchase. Each industry has its own challenges and requirements to function at its optimum level. The first step is to ensure that the ERP supplier can provide an industry-specific software solution.
The software needs to match all your business requirements. It also needs to be written in a language that meets your business and customer needs. The closer the program is to what you need, the less money will be spent on customization. This will result in an easy implementation process.
Long-term Stability
It’s important to consider the track record of the vendor you’re considering. A vendor that’s well-established as an ERP provider will go a long way toward reassuring you of a successful implementation project.
This goes hand-in-hand with the vendor’s reputation in the industry. Do some research about their previous dealings and implementations. Make a note of having a conversation with at least two or three of their previous clients who had similar product implementation. Enquire about after-sales service, IT support, costing, and ability to deliver on promises.
ERP Implementation Procedures
An effective ERP supplier must have the skill and experience to deal with any pre and post-go-live issues. This means they need to provide you with project management best practices throughout the whole implementation process. Make sure to familiarize yourself with all terms and conditions offered by the vendor. It’s also possible to employ a third-party ERP consultant to assist with the process.
Step 2: Determine Your ERP Goals
Before any new system is acquired, it’s crucial to establish the business needs going forward. This is done by drawing up a list of goals that you require the new software to fulfill. Goals need to be realistic and should be possible to achieve during the various implementation processes.
Essentially, you need to ask yourself questions similar to the following:
Why does your company need the new technology?
Is this ERP software industry-specific and has it effectively been tested?
What target or results do you want the software to help you achieve?
What are your existing business processes and how do they differ from the new business processes?
What are the problems in your current system that you hope implementing a new ERP system will solve?
What is the implementation timeline and how will this affect your day-to-day operations? What effect will this have on your customers?
How long will training users take and have SMART goals been set regarding this time frame?
Step 3: Design User Interface to your Company’s Preference
People who have used, purchased, or installed the Enterprise Resource Planning software have a lot of stories to tell about how good or bad the system is. However, not enough consideration is given to the design and user interface aspect of the system.
User interface refers to the way employees can access and use the system. Part of a successful ERP implementation relies on how well an employee understands the new ERP software. There are a few characteristics that define a user-friendly interface that’s specifically suited to your business needs.
Minimal Design
All commands and functionalities should be visible and easily accessible. It’s important to create a screen that’s clutter-free and structured. It’s important to use colors and fonts in a manner that simplifies the process.
User-friendly
An interface should also make it easy for users to navigate their way around the system without having to constantly refer back to training guides. Designing a user-friendly interface will motivate your employees to explore the system on their own and easily find solutions to the queries.
This type of design will also make employees more comfortable and confident in using the system. Once employees feel comfortable with the way the system works and their understanding of it, there will be fewer IT queries to deal with.
Responsiveness
Choosing a cloud-based ERP software platform allows you to access your system from anywhere if that’s what you prefer. Cloud EPR means your employees can log in using their tablets, smartphones, or laptops.
If this is an option you’d like to consider, ensure that your interface is compatible with different screen dimensions. Two of the most popular cloud-based ERP software programs are SAP Business One and SAGE ERP 300. It’s worth looking into if you’re running a small to a medium-sized start-up business.
As mentioned earlier, each business might require its own customized interface, customized to its specific business requirements.
Step 4: Development of ERP System
ERP software development assists organizations to better manage the resources available to them. The key aim of an ERP system is to integrate business processes as well as facilitate the general flow of information within your company.
Not all ERP systems are the same. However, there are a few crucial ERP features that are commonly found in most ERP software systems. Let’s have a look at these.
Integration
Integration is the key factor that sets an ERP system apart from other software types. An ERP software system is made up of a host of business applications built to easily work together. The integration allows these different applications to create a user-friendly platform.
A single ERP database can collect, analyze and store data across various departments which are commonly called business units on the ERP system. Streamlined databases are a more effective way for anyone using the system to access relevant information needed to provide the relevant levels of customer service.
Customer Relationship Management
Customer relationship management, or CRM as it’s referred to in the ERP industry, is software that has two beneficial advantages. Firstly, CRM systems are a perfect option for companies whose consumer base is too large to manage and control with mere spreadsheets.
Secondly, CRMs within an ERP system can centralize customer information which allows for quick access when performing functions on other parts of the system. An instance of this would be being able to access a customer’s address while processing shipping information.
Tracking and Visibility
Some experts regard the ERP solution’s ability to provide comprehensive visibility as the greatest feature. The most prominent example of this is what’s known as supply chain visibility. Many ERP solutions have the technology to track completed products from manufacture to final delivery.
Aside from tracking tangible objects, the inventory system and ERP system can also track required information, such as:
Sales
Product marketing
Staff productivity
Production statistics
Reporting
ERP can report required analysis to end-users. Tools to provide these reports are usually made up of the following:
Customizable dashboards for each department
Pie charts
Gantt charts
Bar graphs
It’s important to note that access is often restricted to the reporting functions. This is done to protect a company’s confidential information. The last thing you need is for your sales revenue figures to be shared with your competitors.
Data Analysis
Collecting and processing data through all your different business functions is already a primary ERP function. It makes sense then that an effective ERP system adds analysis to the mix. ERP can easily analyze all data pertaining to different business operations, production statistics, client data, sales data, and many other components.
This type of analysis gives you the necessary tools to increase general productivity. It can also provide you with future projections of product lines, sales figures, and estimated product revenues.
Step 5: Parallel Implementation
A key step in your ERP implementation process is what’s commonly called parallel implementation. This is a phasing strategy that many organizations are opting for. It encompasses operating the new ERP system as well as the existing system simultaneously.
Typically, users train and practice on the new system which isn’t live, but active for training purposes. They then continue to work on the old system to ensure there is no disruption of the daily business operations. This is particularly useful in a manufacturing company where order processing won’t be interrupted.
Customer interactions and transactions are not compromised while the staff is learning the ins-and-outs of the new system. End-user training is not too rushed and employees have relevant time to learn all the new ERP activities. ERP project team leaders agree that this is the least risky strategy.
Step 6: Phased Rollout
A phased rollout simply allows your new ERP software system to evolve over some time. This means that implementation is broken down into smaller sections. A phased rollout allows users to easily and gradually adjust to the new ERP system.
There are generally six phases of an ERP implementation plan which are listed below:
Discovery and creating a project plan
Design
Development
System testing
Deployment
Ongoing IT and system customer support
Opting for a passed rollout process is particularly effective in a production environment. This allows for production processes to continue uninterrupted.
Step 7: Training for your Staff
The success of any new ERP system largely depends on the training and engagement of the staff that is going to use it. These staff members are commonly referred to as the end-users. They’re the employees who’ll use the system to deal directly with the company’s customers.
Changing technology and introducing new software can be very daunting to some employees. This is especially true in cases where particular employees have been using the “old” or “current” system for several years. To get your employees engaged with the new system, it’s important to follow these expert tips:
Request training guides from your ERP development partners for each new stage of the process. These guides should be in the form of modular training that each employee needs to complete.
Create a sense of urgency among staff from the start. Explain the importance of meeting deadlines with modular training. Encourage them to be interested and enthusiastic about the training. User acceptance is key to implementation success.
Motivate your employees by showing them how the system will benefit their particular job functions. For instance, does the new system streamline their admin duties? Does it enable them to assist customers more efficiently?
During each phase of the training, make use of training videos and other visual aids. Ensure there is actual interaction with the system in a training environment.
Create teams in which you partner stronger employees with colleagues who may be finding it difficult to keep up. Create a buddy system where team members can teach and guide each other.
To give you some insight into one of many training videos you could use to introduce your employees to your chosen ERP system, watch the clip below;
Step 8: Testing the ERP System
The importance of a comprehensive and efficient test run before your ERP system goes live is vital. Whether you’re running a multi-million dollar corporation or a small start-up, ERP experts recommend that testing the full capacity of the system is part of a successful implementation.
The main reasons for ERP implementation failure can easily be chalked down to five factors:
ERP software is not tested before going live.
The testing is done by employees and not by ERP experts who are part of the ERP project team.
Testing is done badly, hurriedly or not in totality due to time constraints or budget restrictions.
Staff is not trained properly, or training of key employees is not finalized before the go-live date.
The ERP system hasn’t been suitably customized to your particular business needs.
Step 9: Deployment of ERP into Your Company Process
The last step of your company’s ERP system implementation is known as the “go-live” process. This is done when hardware and software have been installed and incorporated. Staff should be fully trained and assessed by this time.
Your project manager and implementation team should have prepared for every possible scenario and have the tools available to deal with each problem. Going live is a very hectic and stressful process so everyone needs to be ready and prepared.
The most effective way to proceed through this phase effectively is to draw up a checklist that includes all departments. Your project manager or your implementation partner may already have a general checklist in place. Ensure that it covers every aspect of your particular scenario.
The most important factors that should be on your checklist include the following:
Has all the hardware required for business operations been installed, tested and synchronized?
Have all the necessary business reports been tested and printed? Analyze all data in the report and verify accuracy. Ensure there are no glitches.
All accounting and financial reports should also be tested and information verified.
Ensure that your Email Client has been thoroughly synchronized with your ERP software.
Ensure all end users have access to the system required for their particular job title. Make sure each user has an individual password that grants them access to the functions and reports they need to work effectively.
Confirm that data migration has been done and is 100% accurate. Compare it to data from the old system or reports that were printed off of the outgoing system.
Ensure that backup measures are in place. Each team member should know the channel of command to follow in the event of any hardware or software malfunction.
Generally, the implementation life cycle of an ERP system from project planning to go-live ranges from 6 to 12 months. To better understand the process changes that take place in the life cycle of an ERP system, you might find the below clip useful.
Step 10: Support & Updates
To avoid ERP implementation problems, every project manager needs to ensure that adequate IT support is in place and available on-premises. The success of your post-go-live environment will depend on having the right technical supports on hand to deal with each issue as it arises.
Expert tips for maintaining a secure and updated ERP system include the following:
Keep your ERP software updated: This keeps the system free of viruses and prevents breaches that can compromise software security.
Keep users regularly updated: Inform active users of security and system changes. Constantly update passwords and ensure only authorized personnel has access to the system.
Arrange for regular backup and data storage: Regular maintenance of the system’s backup points will ensure the system is protected from security risks.
Separate duties: Split daily duties and functions so that employees can anticipate potential threats to the system.
Review the security options offered by the ERP system: If you don’t have your own security protocols in place consider the options offered by the ERP software. Ensure that these protocols protect your data and functionalities from hackers. Putting the correct security measures in place and keeping them updated will go a long way towards protecting your customer’s data and keeping it secure. This applies to your confidential company information such as financial ledgers, designs, and marketing strategies as well.
The Bottom Line
When it comes to ERP software, a positive and well-planned implementation approach is crucial to the success of the whole ERP project. Take the time to follow through with each expert tip we’ve offered and ensure constant liaison with your software provider.
ERP implementation is by far the biggest IT project most companies will ever experience. This will ensure your ERP use goes down smoothly and benefits you in the long run!
Enterprise resource planning (ERP) isn’t without its challenges. Like any other acquired data system, ERP, if not applied correctly can result in serious financial costs to the organization.
Since successful ERP implementation is critical to any organization’s success, the factors necessary to achieve this should be given their due diligence. So, let’s have look at the most important points to consider.
Cloud technology is the new catchphrase around upgrading your traditional software programs. This upgrade has made its way into current ERP systems as well. Cloud platform services are exponentially improving the efficiency of organizations investing in ERP software.
Before any new system is acquired, it’s crucial to establish the business needs going forward. This is done by drawing up a list of goals that you require the new software to fulfill. Goals need to be realistic and should be possible to achieve during the various implementation processes.
ERP can report required analysis to end-users. Tools to provide these reports are usually made up of the following:
The success of any new ERP system largely depends on the training and engagement of the staff that is going to use it. These staff members are commonly referred to as the end-users. They’re the employees who’ll use the system to deal directly with the company’s customers.