In today’s ever-changing business landscape, Enterprise Resource Planning (ERP) systems are the linchpin that keeps organisations of all sizes running smoothly and with efficiency. As businesses grow and change over time, so do their ERP requirements, often necessitating a migration or upgrade from a lower-tier solution to a mid-market ERP. This transition requires meticulous planning, a dedicated project team, and a clear vision of success. In this guide, we explore what makes a successful ERP upgrade project, breaking it down into key components and integrating real-world experience.
Contents:
- What is an ERP Upgrade
- The Project Plan
- The Project Team
- Customer Side
- Supplier Side
- The Delivery
- “After-Project” Success
- Conclusion
What is an ERP Upgrade project?
When talking about “upgrades” we can encompass a range of scenarios; for the purpose of this guide we mean:
A migration from a lower capability solution (or amalgamation of independent software applications) to a more sophisticated and capable solution.
This typically involves changing software, but can occasionally be a process of updating one’s existing solution to a more current version, gaining access to new features, functionality and security capabilities.
The Project Plan
A well-crafted project plan serves as the navigational chart for your ERP upgrade journey. It outlines the critical stages involved and ensures a structured approach from initiation to post-go-live support.
Initiation: Setting the Course
- Description: At the initiation stage, the project’s scope, objectives, and vision are meticulously defined, ensuring a clear understanding of the project’s direction.
- Indicative Timeline: Typically, the initiation phase spans 1 to 2 months, with a focus on defining the project’s scope and goals.
- Resource Requirements: Customer Executive’s involvement is crucial in providing strategic direction and authorization during this phase.
Design: Blueprint for Success
- Description: During the design phase, the technical architecture, configuration requirements, and functional specifications come to life. This phase serves as the blueprint for the ERP upgrade.
- Indicative Timeline: The design phase typically takes 3 to 4 months, involving in-depth planning and collaboration between Business Analysts, SMEs, and Functional Consultants.
- Resource Requirements: Business Analysts and Functional Consultants play a pivotal role in gathering requirements and translating them into a workable design.
Build: Constructing the Solution
- Description: The build phase is where the actual development and configuration of the ERP system occur. It’s the stage where the project starts to take tangible shape.
- Indicative Timeline: Building the ERP system can span 6 to 8 months, depending on complexity.
- Resource Requirements: Workstream Leads oversee specific areas of development, while Lead Developers manage the technical aspects of customizations and integrations.
Testing and Validation: Ensuring Seamlessness
- Description: The testing and validation phase focuses on ensuring the ERP system meets end-user requirements and functions seamlessly.
- Indicative Timeline: This phase typically lasts 2 to 3 months, including user testing and refinement.
- Resource Requirements: User-Testers play a critical role in validating system functionality, supported by IT Specialists providing technical expertise.
Deployment: Transitioning Smoothly
- Description: Deployment marks the transition from the old system to the new ERP. This phase is crucial for a seamless migration.
- Indicative Timeline: Deployment often spans 1 to 2 months, with a strong emphasis on change control processes.
- Resource Requirements: Collaborative efforts between the customer and supplier sides ensure a smooth transition, with Project Managers playing key roles.
Post-Go-Live Hypercare: Ensuring Stability
- Description: After go-live, the hypercare phase ensures immediate issue resolution, ensuring system stability and user satisfaction.
- Indicative Timeline: Hypercare typically continues for 2 to 3 months post-deployment.
- Resource Requirements: Support Analysts provide post-go-live support, while the Project Team remains on standby to address any issues promptly.
The Project Team
A robust project team is the backbone of a successful ERP upgrade project. It’s a blend of customer-side and supplier-side roles, each with a specific focus and responsibility.
Customer Side
- Customer Executive (Mandatory)
- Holds ultimate authorization on project scope, objectives, definition, and change control.
- Leads monthly stewardship meetings.
- Project Manager (Mandatory)
- Maintains operational control of client resources, activity, and timelines.
- Project Assistant (Suggested)
- Assists the Project Manager with tasks such as minute-taking.
- Workstream Leads (Mandatory)
- Oversee specific areas of development and implementation.
- Subject Matter Experts (Mandatory)
- Key decision-makers for all workshops.
- Responsible for reviewing scoping documentation and ensuring domain expertise.
- Knowledgeable about compliance and validation responsibilities.
- IT Specialists (Suggested)
- Offer technical expertise and support as needed.
- User-Testers (Mandatory)
- Play a critical role in end-user testing and validation operations.
Supplier Side
- Supplier Executive
- Oversees the supplier’s involvement and alignment with customer objectives.
- Project Manager (Supplier)
- Manages supplier team resources and timelines.
- Project Management Office (PMO – Supplier)
- Maintains project governance and ensures best practices are followed.
- Business Analyst
- Collaborates with customer SMEs during the design phase.
- Lead Consultant
- Provides strategic guidance and expertise throughout the project.
- Functional Consultants
- Configure ERP modules in line with customer requirements.
- Lead Developer
- Manages technical aspects of customization and integration.
- Support Analyst
- Provides post-go-live support to ensure system stability.
- Technical Consultant (IT & Infrastructure)
- Ensures IT and infrastructure readiness for the ERP system.
Delivery
Somewhat ironically, this is the phase of the project where the least needs to be said; the delivery of the project should occur to plan and conform to the governance and timelines set out. The success of delivery will be assured by setting out a scope, effectively making decisions, professionally managing change, undertaking thorough testing, and engaging in a transparent and mutual manner. We cover this all in a specific article.
Core elements of the delivery are as follows:
- Initial training
- System design (scoping & documentation).
- Build
- Testing
- Enhancements & remediation
- Re-testing
- Go-Live preparation (including refresher training)
- Data Migration
- Go Live
‘After-Project’ Success
A great ERP upgrade project extends beyond the go-live date, ensuring continuous success and alignment with evolving business needs.
Ongoing Improvements/Changes:
- Continuously assess and enhance the ERP system to meet evolving business needs.
- Regularly solicit feedback from end-users and stakeholders to identify areas for improvement.
- Review competitors, customer and supplier offerings to understand your own gaps (e.g. eCommerce, EDI, etc.).
- Create a rotating steering committee to review and develop internal systems on an ongoing basis – bringing new ideas, skills and enthusiasm to the business while maintaining a cohesion of vision.
Internal Centre of Excellence (CoE):
- Establish, develop and maintain a dedicated internal team with expertise in the upgraded ERP system; spanning all functional domains – this internal knowledge will help triage and resolve immediate issues and also can contribute ot the system development roadmap.
Post-Go-Live Support Frameworks:
- Implement structured frameworks for support and maintenance, including comprehensive documentation of system configurations and customizations.
- Conduct regular system health checks and audits to proactively address potential issues.
- Undertake an external expert to provide consistent consultancy to help continually develop the solution in a structured manner and bring industry-standard best practice into your organisation.
Relationships & Engagement:
- Foster a strong and collaborative partnership between the customer and supplier sides by scheduling regular meetings and reviews.
- Encourage open communication channels to address any concerns or emerging business needs promptly.
The ‘Long View’:
- Maintain a strategic perspective, aligning ERP capabilities with long-term business goals.
- Regularly assess the ERP’s alignment with evolving industry standards and technology trends, considering future upgrades or enhancements.
Conclusion
In conclusion, a successful ERP upgrade project involves meticulous planning, a dedicated project team, and a commitment to long-term success. With the right strategy, collaboration between the customer and supplier sides, and careful management of timelines and resources, organisations can smoothly transition from lower-tier solutions to mid-market ERPs, ensuring they remain agile and competitive in today’s ever-evolving business landscape.
If you’re interested in discussing how Mysoft can help your organisation make a seamless transition to a new ERP system like Sage X3, feel free to get in touch with our team. We’re here to support you on your journey towards a brighter, more efficient future for your business.
