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The 7 stages of the ERP project lifecycle
The stages of an ERP project lifecycle are selection, planning, training, testing, deployment, support and the post-implementation period. Learn more about the process.
An ERP project may seem overwhelming, but organizing the project into stages can help companies succeed at this major undertaking.
Many organizations implementing new ERP software follow the same project stages, and learning about them can help company leaders plan better for their own implementation. Stages like training and testing help ensure the success of the software.
What is an ERP implementation?
An ERP implementation is a project in which an organization launches new ERP software for the company.
This process requires collaboration between key stakeholders within the organization and the software vendor to ensure the software meets the company's business requirements. The implementation includes the steps of selecting the platform for purchase, planning for the new software, training employees, testing the new software, deploying it, supporting the software after go-live and then carrying out various post-implementation steps.
The 7 stages of an ERP implementation
While some stages include overlap, an ERP software implementation proceeds in a specific order. Here are each of the ERP project lifecycle stages.
1. ERP software selection
This part of the process is likely the most critical step.
Some ERP software is better suited for some industries than others, so the company leaders in charge of selecting the new ERP software should talk with peers within their same industry. Once leaders have identified a set of potential products, the implementation team should vet each software product by speaking with current customers and attending demos of the products.
2. ERP implementation planning
Before proceeding further, implementation team leaders should work with their group to plan out the ERP implementation process in as much detail as possible.
The vendor should be an experienced partner in managing these projects. The team should also make sure that key internal players are part of the planning process. For example, the IT department should be able to weigh in on the project timeline and whether they believe the new ERP software meets the organization's needs.
3. ERP software training
Employees must learn how to properly use the new system and deal with system errors or alerts. While some workers may take longer to learn the system than others, all ERP users should receive training and information about the software's standard operating procedures prior to go-live. The process should then continue, with training occurring during and after go-live as well.
Training methods can include instructor-led training sessions, internal training videos and a centralized repository of training material for all ERP users.
4. ERP software testing
Most ERP implementations involve system customizations, data migrations and integration with other tools. All these factors include their own potential for issues and could cause major problems later on with the ERP software.
Testing all these components prior to the go-live can help identify any issues that the team needs to address before proceeding.
5. ERP software deployment
At this stage, the company deploys its new ERP software, having trained new users and carried out all required testing.
The company's internal team ensures the system is accessible to their end users and any customizations and integrations are operational, though the extent of this work depends on whether the software is on premises, in the cloud or hybrid. The vendor handles some of these tasks for certain software types.
6. ERP user support
Two types of support are required for a new ERP implementation.
Internal subject matter experts help end users with carrying out the new processes for the software. Users likely require an adjustment period to learn the new software.
In addition, the vendor or internal IT staff assist end users with technical issues, such as integration problems.
7. ERP post-implementation checks
The final stage of the implementation occurs once the new ERP platform has rolled out and users have received the needed support.
During this last stage, the vendor or internal IT staff continue to address any end-user issues in a timely manner. Technical staff also check regularly to ensure the platform is performing at optimal levels and any integrations and customizations are operating properly.
Reda Chouffani runs a consulting practice he co-founded, Biz Technology Solutions Inc., and is CTO at New Charter Technologies. He is a technology consultant with a focus on healthcare and manufacturing, cloud expert and business intelligence architect who helps enterprise clients make the best use of technology.
