Methodology and Process for an ERP Implementation Plan

Enterprise resource planning (ERP) systems support organisations across nearly every area of their operations by consolidating data and automating key processes. ERP solutions help manage processes, streamlining the planning and oversight of finances, suppliers, inventory, products, services, customers and employees.

At the heart of every ERP system is a unified database that serves multiple departments, allowing teams across the organisation – whether in finance, sales, or human resources – to access and work with the same data.

What Is the ERP Implementation Process?

No two ERP implementations are exactly the same. But they all share core elements, including stages that include planning and acquiring the solution, installing licences and migrating data, and mapping processes for each group of users.

ERP Implementation Methodology Stages

The methodology for ERP implementation can range from straightforward to highly complex, depending on factors such as the organisation’s size, the scope of the project, and whether the system is being deployed on-premises or in the cloud.

On-premises ERP solutions require additional steps, including installing hardware infrastructure and employing staff to maintain it. Since all configuration, hosting, and system management are handled internally, these stages can extend the overall implementation timeline.

Cloud-based ERP implementations, on the other hand, eliminate many of the steps involved in traditional on-premises deployments. With the solution provider managing the infrastructure, businesses can focus primarily on data migration, process adjustments, and staff training. Tasks such as hosting, server management and ongoing maintenance are usually handled by the ERP vendor.

ERP Project Team

The ERP project team is responsible for managing the implementation process, ensuring the project stays on track and guiding team members through key milestones. This group oversees day-to-day activities, maintains the project timeline, and ensures that all necessary steps are completed. The composition of the team will vary depending on the organisation’s size and whether it is deploying a cloud-based or on-premises ERP system.

The ERP project team typically includes project managers from both the ERP vendor and the organisation, along with business analysts, developers, key users, and engineers. Each team member plays a specific role in configuring, installing, testing and system migration.

For smaller-scale projects, particularly those using cloud-based solutions, the project team is often more streamlined. It usually comprises a project manager, key users and sometimes an ERP vendor consultant who assists with installation, data migration and testing.

More complex implementations often involve a steering committee made up of senior executives and management. This committee provides strategic oversight, defining the project’s objectives, priorities, and business case. It also manages the budget and sets the high-level goals that justify the ERP investment.

Budgeting for ERP Implementation

A key factor in determining whether an ERP implementation succeeds or fails is setting a realistic and well-structured budget. One of the most common reasons organisations exceed their budget is due to ‘scope creep’ – adding new features or requirements mid-project.

ERP implementation costs are generally divided into three main categories: technical, workforce, and data migration. Technical costs encompass everything related to the system’s infrastructure and setup. This includes software licences, hardware requirements, planned technical services, and system customisation. It also covers infrastructure upgrades, database setup, and ongoing support, maintenance and hosting.

Workforce costs cover both internal and external personnel-related expenses. These typically include training and education, project management fees, consultancy charges, and broader change management costs—such as recruiting extra staff to support the implementation.

Data migration costs relate to activities like extracting data from legacy systems, decommissioning outdated platforms, and preparing clean, usable data for transfer into the new ERP environment.

What Does It Cost to Implement an ERP?

While there's no one-size-fits-all figure for ERP implementation costs, a common benchmark is to allocate around one percent of the organisation’s overall operating budget. This estimate can vary depending on the size and complexity of the business – larger enterprises may need to invest more, while smaller organisations might require less.

On-premises ERP solutions usually come with higher upfront capital costs. These include the purchase of perpetual software licences, as well as ongoing expenses for managing and supporting the required IT infrastructure. This covers hardware, servers, physical space, and the staff needed to maintain and operate these systems.

In contrast, cloud-based ERP systems generally involve lower initial expenditure, as there’s no need to invest in physical infrastructure. Instead, organisations focus on software and internet connectivity. Because the ERP vendor hosts and manages the entire backend environment, businesses benefit from reduced pressure on internal teams – one reason why nearly half of all ERP implementations now opt for the cloud model.

Change Management Plan for ERP

One of the biggest challenges in any ERP implementation is helping employees adapt to the new ways of working. Moving staff over to updated systems, procedures, and business rules takes clear communication and effective training. To manage this transition smoothly, organisations need a robust change management strategy.

A well-structured change management plan should outline a clear path forward, including defined objectives for the new processes. Key components might include:

• Readiness assessment – Evaluate how prepared the organisation is for the new system and identify potential risks and opportunities.
• Role mapping – Review current roles across the business and pinpoint any skill gaps or resourcing needs.
• Communications strategy – Create a detailed plan that outlines how and when key messages will be shared, covering objectives, timelines, deliverables and milestones.
• Employee support – Empower the workforce by creating new roles, building awareness and putting tailored training programmes in place.
• Training – Carry out hands-on training sessions to onboard users and ensure they’re confident navigating the new ERP system.

Design and Development

In the design and development phase of an ERP implementation, the organisation works closely with the vendor to map out and document how the new system will handle business processes and manage data. This involves defining updated workflows and building a data structure that supports these revised processes.

For instance, if you’re moving from an on-premises system to a cloud-based ERP – or if the new platform needs to integrate with other tools such as a point-of-sale (POS) system or inventory software – the project team will need to plan and build the necessary custom features or APIs ahead of any data migration. The team then determines which data from the legacy system is relevant and should be carried over into the new ERP environment.

Data Migration

Data migration plays a vital role in the success of any ERP implementation, though it can be complex and occasionally throw up unexpected challenges. The objective is to transfer accurate, relevant data that has been cleaned, verified, and mapped correctly to its new location in the system. One way to streamline this process is to work with a project analyst beforehand to carry out a full data audit and mapping exercise, which helps avoid issues during the actual migration.

Training

To truly realise the value of your ERP system, employees need to understand how to use it effectively. Comprehensive training is key and should be offered through a mix of digital learning resources tailored to different user roles.

Online learning gives users the flexibility to complete training at their own pace, focusing on areas most relevant to their day-to-day responsibilities while also ensuring they have access to broader system knowledge. For more advanced systems, ongoing training beyond the initial rollout is essential to encourage long-term adoption and user confidence.

Testing

Once the ERP platform has been installed, it enters a testing phase where administrators collaborate with the vendor to check that everything—from data to functionality—is operating correctly. This phase is also used to identify any bugs or performance issues and put fixes in place.

Members of the implementation team, including engineers, developers and analysts, thoroughly test integrations, confirm the success of data transfers and fine-tune the system. This ensures that everything is functioning properly ahead of the final migration and official go-live.

Go-Live and Deployment

The big day has arrived. The system is built, the bulk of your data has been migrated, training is complete, and testing has confirmed everything is working as it should.

However, there are still a few final steps to complete. Transactional data – such as stock levels, purchase orders, accounts receivable/payable, and financial balances – tends to change rapidly, so it’s best to transfer this information right before go-live to ensure it’s as accurate as possible. Once the last pieces are in place and you've addressed any last-minute adjustments, you can confirm the go-live date and officially switch over to the new system.

Review and Evaluation

To assess whether the ERP implementation has been a success, you’ll want to evaluate its impact across different areas of the business. This includes gauging customer feedback, analysing how well employees have adapted to the new system, and calculating the actual return on investment. Some helpful questions to consider include:

• Are staff embracing the new technology and using it to its full advantage?
• Has automation led to greater efficiency or improved customer service?
• Are customer retention and satisfaction levels changing—for better or worse?
• Are sales figures, referrals, and customer engagement trending upwards?
• Is inventory more controlled, and have workflows become more streamlined?
• Has there been a boost in production output?

It’s not always easy to measure intangible improvements straight away. However, over time, ERP automation should lead to more efficient operations, fewer errors, reduced costs, and increased revenue.

It’s wise to wait several months—possibly up to a year—before fully evaluating these less tangible outcomes, as your team will still be adjusting and settling into the new system. This longer-term view will give a clearer view of the ERP’s true impact across the organisation.

Support

Ongoing support is the final stage of an ERP implementation, and it’s essential for long-term success. Even after the system is fully operational, unexpected issues can still arise. Having knowledgeable support staff on hand to troubleshoot problems and provide guidance is vital. Depending on the complexity of the implementation or the scale of the business, the ERP provider may offer varying levels of support to suit different post-launch requirements.

Regardless of the industry or business size, rolling out an ERP system is a significant initiative that calls for detailed planning, strong leadership, and commitment across the organisation. While it’s often a complex and resource-intensive process, a well-executed implementation should lead to improved efficiency, reduced operational costs and ultimately, stronger revenue growth from fewer resources.