The Complete Guide to ERP Implementation
Is your business considering adopting an ERP system? This guide walks you through each phase and tells you how to succeed in ERP implementation.
Guide content
1. Introduction
2. What is an ERP?
3. What is ERP implementation?
4. Who should be interested in ERP implementation?
5. Why ERP implementation matters
6. How to implement an ERP system? (The 5 implementation phases)
7. After go-live: What happens next?
8. Lessons learned: Common issues in ERP projects and how to avoid them
ERP Implementation FAQ
1. Introduction
There comes a time when every growth company starts to consider implementing its first ERP system.
It might be because the business is scaling fast, but processes aren’t keeping up. It could be because it is using separate software for sales, finance and HR, and data consistency is becoming an issue. It might be due to increased demands for transparency from VCs or regulatory bodies.
Implementing an ERP system is a way to introduce a streamlined end-to-end process to your business, establish a single source of truth for all business data and enable real-time reporting and analytics. It also lays the foundation for the data-driven development of your business.
ERP implementation goes beyond technology, it’s a fundamental shift in how you operate your business. It is also a big undertaking that requires focus, effort and resources.
In this guide we go through how to navigate a successful ERP implementation. It is based on our experience in hundreds of NetSuite implementations.
2. What is an ERP?
An ERP system (Enterprise Resource Planning) is a unified business platform that serves as the central source of data and the main tool for managing core business workflows, such as finance, supply chain management, warehouse management, procurement and other key functions.
Depending on the system (or the system architecture) an ERP may also cover HR, sales, operations, and other key areas. Another option is to integrate data flows to and from other systems into the ERP.
But whatever the architecture, the ERP is at the centre of it.
A properly implemented ERP improves efficiency and transparency by centralising data, harmonising and automating routine processes and providing real-time visibility across departments. It allows teams to make faster, data-driven decisions with fewer errors and less duplication of work.
A modern, cloud-based ERP like NetSuite, also evolves with the business. It can be scaled up and expanded as the business grows or develops into new areas. It is the technical platform for running your entire business.
3. What is ERP implementation?
An ERP implementation is the process of adopting an ERP system to run core business operations.
Technically, it involves consolidating disparate systems into a unified platform. Strategically, it’s a business transformation that allows the organisation to rethink and harmonise its processes, creating seamless end-to-end workflows and greater operational cohesion.
How has ERP implementation changed in the cloud era?
In the past ERP implementations were typically one-off initiatives, with systems customised to fit existing processes. Modern ERP projects often follow an MVP (Minimum Viable Product) approach and leverage preconfigured best-practice processes.
An MVP is the simplest functional version of the ERP that still delivers business value. It is a modern methodology based on the recognition that an ERP system is a continuous work in progress that evolves with the business. It supports phased implementation, introducing new functionalities only when the organisation is ready.
Preconfigured processes are preferred because they lower the costs and risks of an ERP project, and as they are based on best practices, they often improve operational efficiency as well.
4. Who should be interested in ERP implementation?
A start-up or a scale-up can run its business successfully for a while with basic accounting tools, Excel sheets and process or industry-related point solutions.
However, as the business grows (adding new sites, teams, or service lines) maintaining efficiency and transparency becomes increasingly difficult without a unified ERP system.
5. Why ERP implementation matters
What does it accomplish?
An ERP integrates key business functions into a single unified system
Streamlined and Aligned
An ERP helps streamline and align processes across finance, HR, operations, purchasing, and sales, while creating a real-time data trail for greater transparency. This leads to better data quality but it also enhances collaboration by making the connections between departments more visible.
Automation
Compared to spreadsheets and point solutions, an ERP automates workflows that are often manual such as invoice matching, inventory updates and financial reporting. With many artificial intelligence tools available within the ERP, there are further automation gains to be made. NetSuite, for example, supports AI-based invoice capturing and financial anomaly detection and other practical use cases.
Single Source of Truth
An ERP offers a single source of truth for all business processes. This means that e.g. sales, invoices, accounts receivable and customer service all use and have access to the same data. This reduces the risk of human errors and overlaps.
Scalability
A modern cloud-based ERP is highly scalable, both in volume and in features. This allows the system to evolve with the business, thus enabling continuous development.
6. How to implement an ERP system?
Although an ERP is software, its implementation is primarily a business transformation. Success requires executive commitment, a dedicated project team, and close collaboration between the client and consultant.
What’s required for a successful ERP implementation?
On the client side, a strong project team, that includes:
A sponsor from top management
A dedicated project manager
Subject matter experts (SMEs) from different business areas.
Super-users who will be the face of the change within organisation and are responsible for training other end-users.
The team needs sufficient resources and enough time to focus on implementation. An ERP project impacts the business at a broad level, and doing it right takes a significant amount of time and effort.
To understand the implications, it helps to view the project across three dimensions:
Business
Ensuring that business processes and workflows are aligned with the system and making adjustments when needed.
Organisational
Since the ERP system supports daily business operations, it’s essential to have end-users engaged and on board.
Technical
While ERP implementation in the cloud era is no longer primarily an IT project, technical factors like data migration and system integration still play a key role.
On the consultant side, you are also going to need an ERP consultant to help you through the project. (Choosing the right consultant for you is as important as choosing the right system. We will cover both of those things in the future.)
There are five distinct phases in a modern ERP implementation project lifecycle, and a good consultant will guide you through each one.
The consultant side project team often consists of:
Project Manager
Solution Architect with industry experience
Functional consultants specialising in specific business domains
Technical Consultant / Developer
In the later phases the team also includes:
Testing & QA Specialist
Data Migration Specialist
Implementation phases
Phase 1: Initiation
To define what ERP project success looks like and to set up all the necessary measures.
What happens in phase 1?
Once the agreement with the ERP provider is finalized, the first phase begins. In the negotiation phase you will have created an outline for the scope of the project, but now it is time to be more specific and:
Define project scope and deliverables in detail
Create a resource plan
Define stakeholders and create a communication plan
Create a risk management plan
Create the project management plan
An experienced consultant will guide you on best practices suited to your scope and deliverables, but make sure your own team can dedicate enough time to the project.
Who is involved?
Consultant-side project team
Sponsors of the project: CFO, Senior management team
Client-side project manager
Subject Matter Experts (SMEs)
Implementation phases
Phase 2: Analyse and Design
To understand your current business processes and design how they will work in the new ERP system.
What happens in phase 2?
The consultants will work with your team to map existing processes and compare them to what the ERP system offers. The outcome is a clear design of how the system will support your operations.
This phase is often one of the longest, sometimes accounting for around a third of the project timeline. Steps include:
Gathering detailed requirements from different departments
Mapping “as-is” processes and designing “to-be” processes
Identifying gaps between current workflows and ERP capabilities
Agreeing on configuration choices and possible customisations
Who is involved?
Client-side project manager and SMEs (from finance, operations, sales, etc.)
Consultant-side functional consultants and solution architects
Sponsors to sign off on design decisions
Implementation phases
Phase 3: Configure, Develop and Validate
To build and test the ERP system so it matches the agreed design.
What happens in phase 3?
The system starts to take shape. The consultant configures the ERP, develops any required customisations, and sets up integrations with other systems. Then everything is tested to ensure it works as expected.
This phase usually takes the most time. While configuration and development are consultant-led, testing and validation require significant client involvement. Steps include:
Configuring the system according to the design
Developing custom reports, fields or workflows if needed
Migrating sample data for testing
Running unit tests and user acceptance testing (UAT)
Documenting the solution
Who is involved?
Consultant-side technical consultants, developers and testing & QA specialist
Client-side SMEs and super-users for testing and validation
Client project manager to coordinate testing.
Implementation phases
Phase 4: Deployment
To go live with the ERP system and migrate business operations onto it.
What happens in phase 4?
The “big day” when the system moves from testing to production. Planning and support are critical to avoid disruption. Steps include:
Final data migration moving full data into the system
Training end-users
Cutover planning. Deciding when and how to switch from old systems
System go-live and hypercare, meaning intensive support from the system provider in the first days/weeks
Who is involved?
Client project manager, SMEs, and end users
Consultant-side technical consultants, testing & QA specialist, data migration specialist and support staff
Sponsors to monitor progress and address escalations
Implementation phases
Phase 5: Optimise and Project Close
To fine-tune the system after go-live and formally close the project.
What happens in phase 5?
Once the ERP is live, there are always small adjustments and refinements needed. The consultant ensures the system is stable and aligned with business goals before handing it over to business-as-usual operations. Steps include:
Gathering user feedback
Making minor adjustments and fixes
Optimizing workflows and reports
Final knowledge transfer to internal teams
Formal project closure and sign-off
Who is involved?
Client-side SMEs and end users (providing feedback)
Consultant-side support and training staff
Sponsors and project manager to confirm project goals are met
After go-live
7. What happens next?
Implementation is only the beginning of the ERP lifecycle. It gets emphasised because of its intensity, but for your business what comes next is even more important.
Foundational stage
Now your organisation comes to terms with the new system. You begin to notice business benefits, especially in regards to financial transparency, but this stage is more about accumulating data for later development and optimisation.
You’ll likely start receiving user feedback suggesting the system feels limited or unfinished, that’s a sign it’s time to expand functionality.
Stabilisation stage
This is when users begin to feel comfortable with the new system. In an MVP model you start to implement new modules.
Strategic stage
After accumulating enough data and securing user adoption across the organization, the ERP becomes a strategic tool. Enriched with AI-based analytics and automations it turns into a fully-fledged business platform that improves efficiency, provides insights and can be utilised for data-based forecasting and planning.
8. Lessons learned: Common issues in ERP projects and how to avoid them
ERP projects can be frightening. But if you commit to the project and give it the resources it requires, there is nothing to fear. The issues that can sidetrack an ERP implementation are well-known, and they are avoidable by taking the following precautions.
1. Design for the future, don’t copy the old
Even when you start a transformation with the best intentions, it’s easy to slip back into the old. In ERP implementation that means trying to recreate old workflows in the new system.
Instead of embracing the new and making the effort towards change, the organisation gets stuck in the old way of doing things and the benefits of the new technology remain unrealised.
To avoid this, it’s important to invest time in rethinking your processes rather than just digitising existing ones. Engage stakeholders early, challenge legacy practices and align the system design with how you expect your business to be in five years, not as it is now.
2. Give the ERP implementation the time and resources it requires
One of the most common issues is that the project doesn’t receive the resources its success would require. The project team is understaffed and doesn’t have enough time to dedicate to the implementation. Important decisions are made in a hurry, and finally, the delivered system fails to meet business needs. Or at the very least, the project timeline gets drawn out.
To succeed in an ERP project, the client-side project team has to have enough resources. Consultants can advise and facilitate, but they can’t define your business needs or make operations-related decisions.
The only way to avoid this is to assign a dedicated project team and allocate a sufficient part of their working hours solely to the ERP project. ERP implementation can’t be done successfully “on the side” of regular work.
3. Validate the new system with real scenarios, real data and real end-users before going live
Testing is one of the most time-consuming parts of an ERP project, but there are no short-cuts: It is crucial to validate the system before it goes live. Failure to do so is a decision to implement an unfinished system.
The type of testing matters as well. The smart move is to test as many actual use cases as possible e.g. order-to-cash processes, procurement and reporting from recorded data. The time spent on validating the system before production-use directly correlates with ROI and the speed of user-adoption.
Prepare for the testing and validating phase early and treat it as a core part of the project. Build realistic testing schedules, assign clear ownership for each process area and involve end-users in the testing process. Use real data and real scenarios, and only sign-off when users are confident that the system works as intended.
4. Take ownership of the new system and lead from the front
ERP projects involve many stakeholders and participants, but ultimately, ERP is a business platform that requires business ownership. Without that ownership, the ERP can lose direction and fail to deliver value.
There are several reasons why this may occur, and they often stem from either insufficient commitment or low participation.
The best way to prevent this is to ensure that someone from top management (typically the finance leadership) actively sponsors the project, while internal champions help drive it forward.
With strong leadership and example-setting, the new system can take root successfully.
5. Ensure data quality with ownership, standards and procedures
Data is the lifeblood of modern business, it drives transparency and operational efficiency. One of the key reasons for implementing an ERP is to unify the collection and access to business related data.
This makes data quality a central concern. In computer science, the quality of the output depends entirely on the quality of the input. This means that reports and forecasts are only as good as the data they use.
To ensure data quality, start by defining clear ownership for every data set. Establish high data standards early and document how information should be entered, stored, and maintained. Clean and validate existing data before migration and implement procedures to monitor quality after go-live. Finally, train users on why data discipline matters, because even the best ERP can’t fix bad input.
NetSuite is the preferred ERP for 43 000+ companies
There are many ERP options, but for companies pursuing growth and international expansion, NetSuite is a strong candidate. NetSuite is the preferred ERP for tens of thousands of companies looking to scale up their business, and Staria is Europe’s leading NetSuite implementation and consulting partner.
Let's talk ERP
Staria is your NetSuite partner that delivers results
We’ve delivered over 300 successful NetSuite implementations since 2013, and we have extensive experience across industries, regions and business sizes. With our understanding of business environments that are culturally diverse and subject to differing regulatory requirements, we bridge the gap between headquarters and local offices.
ERP Implementation Frequently Asked Questions
Why should I implement an ERP system?
An ERP system transforms your business by creating unified, end-to-end processes and consolidating all business data into one reliable source. This enables real-time reporting and analytics while building the foundation for data-driven growth and decision-making.
If your growth is held back by inefficient processes, disparate business apps or non-real-time or inconsistent data, implementing an ERP is something you should consider.
How do I know if my company is ready?
Don’t worry, no organisation is ever fully prepared for a transformation like an ERP implementation.
The most important thing is to get started; with a reliable implementation partner, everything will fall into place. A good partner can identify the necessary resources on both sides and estimate the workload required throughout the project.
How long does ERP implementation take?
There is no minimum or maximum time for an implementation; the schedule is always agreed together with the customer.
In a standard implementation, an ERP system can be deployed very quickly, sometimes in as little as 10–12 weeks. If the scope of the implementation is more complex, this is taken into account in the planning, and the deployment can be divided into suitable phases that go live according to the agreed schedule.
In such cases, the total duration of the project can be, for example, six to nine months.
How to ensure successful ERP implementation?
Choose an ERP system that fits the needs of your business both now and in the future. For example, if you are looking to grow internationally, NetSuite is a strong choice.
Choose a consultant with the skills and experience to help you through the process.
Commit to the project, build a strong team and give it enough time to focus on the task at hand. Design the system carefully and test it thoroughly before going live.
Engage, train and communicate to the end-users early and often throughout the implementation.
What is the best ERP for a growth company?
There’s a lot of options out there. But we would say it’s NetSuite. Trusted by over 43 000 growth companies in more than 200 countries and territories makes NetSuite a tried and tested choice for any business. But it’s an especially good choice for companies looking to expand internationally.
Read more about NetSuite for different industries:
How do we choose the right ERP system?
The selection should be based on your specific business needs, industry requirements, the vendor's reputation and long-term scalability.
What implementation approach should we use?
The best approach depends on your company size, complexity, and resources. Staria will give you the best recommendation depending on the scope and complexity of the project.
How much staff time is required?
Internal staff time is usually a major resource requirement, and project teams have to juggle their day jobs as well as project implementation demands. Adequately provisioning internal resources to be able to be available and engaged throughout the lifecycle of a project is important to the quality and success of any implementation.
Can current/legacy data be migrated from my old system?
Yes, data migration is a common practice, but it requires careful cleaning and preparation ensuring data mapping of legacy accounts are carefully coordinated and migrated accordingly.
Read more in our blog about data migration.
How will the new system affect our current business processes?
ERP implementation is a business transformation, likely to have an impact on all departments. It will likely change existing workflows, roles, and responsibilities, requiring a considered clear communication and the impacts certain changes will have on various business processes.
How will we manage employee resistance to change?
Open and consistent communication about the benefits of the new system, involving end-users early in the process, and providing comprehensive training can mitigate resistance and foster user adoption.
