In this guide
Completing an ERP transformation isn’t to be taken lightly. There are many moving parts and potential challenges, but the rewards can be substantial for your business. Increased efficiency, profit and customer satisfaction are just the beginning.
To get you started, follow this complete step-by-step guide to ERP transformation.
What is an ERP transformation?
An ERP transformation isn’t just about upgrading software, but aligning your business with the ERP system to drive growth and innovation. The ERP transformation process involves reviewing your organisation’s structure, data, workflows, business processes and more to ensure you’re gaining maximum value from your software.
What is the difference between an ERP transformation and a digital transformation?
The difference between an ERP and a digital transformation is their focus and purpose. ERP transformations aim to improve operational efficiency, reconfigure internal processes and workflows and maximise the value of a new or existing ERP system. An ERP transformation may involve upgrading the ERP or moving from an on-premise deployment to the cloud.
Digital transformation is a more general term that applies to digitising and, where possible, automating systems and processes. This typically enables better performance at lower cost. A digital transformation fundamentally changes the way a business (or part of a business) operates. By digitising workflows, integrating and automating them, a digital transformation can help increase efficiency and unlock business value.
Benefits of an ERP transformation
An ERP transformation can help you get full value out of your software investment. It can help you streamline workflows, break down departmental silos and eliminate inefficiencies.
The key benefits of an ERP transformation include:
Improved efficiency and flexibility
Improved efficiency and flexibility across your business mean it’s better positioned to adapt to market changes, reduce costs, deliver more to customers and jump on opportunities. These can improve profit margins and accelerate growth.
Better customer experiences
You’ll be able to deliver better customer experiences after an ERP transformation. Streamlined operations, reduced costs and more accessible customer data can unlock service improvement, competitive costing and personalised interactions.
Better data accuracy and visibility
With more visible and accurate data from an ERP transformation, you’ll be able to make better-informed decisions, boost efficiency and reduce errors.
Potentially reduced operational costs
Any systemwide improvement could save money by making processes more efficient, automating workflows and preventing wastage in resource allocation.
How to perform an ERP transformation step-by-step
To perform an ERP transformation, follow this step-by-step guide:
Identify the scope of your ERP transformation
First, identify the scope of your ERP transformation. Are there specific pain points you want to prioritise? What are the expected outcomes of system or process change and how will you measure success? Are you planning to implement a new ERP system or do you need to add to your existing platform?
Key steps:
Define the scope and purpose of the project
Set expectations and goals
Engage stakeholders
It’s important to engage all relevant stakeholders early in the process. Involving management, end-users and IT teams helps get buy-in and ensure any changes to the ERP system meet everyone’s needs.
Key steps:
Set up an ERP transformation team that’s responsible for documenting how things currently work and what’s needed. This team will need to champion any system or process change so the wider team accepts a new way of working.
Define roles and responsibilities for who’ll do what and when.
Tip: If you work with MYOB or one of our partners, we can guide you through your MYOB Acumatica implementation.
Likewise, your customer success manager will support you through any changes you want to make to your platform.
Thoroughly plan the transformation
A transformation plan will include timelines, resources, a budget and ways to manage risk. It’ll serve as a roadmap to keep everything on track and help you avoid or minimise any issues.
Key steps:
Run scoping and design workshops to decide system requirements
Assess potential new ERP solutions. Watch a demo or speak to an expert to find out how a platform like MYOB Acumatica could work for your business
Create a project plan, including key milestones and dates. Your implementation partner can help you with this.
Execute the ERP transformation
For a successful ERP transformation, you must consider both the technology and the people involved. Therefore, you need a change management process to support your people while you’re preparing for your ERP migration or testing your new system.
Key steps:
Cleanse data to remove duplications and inconsistencies
Migrate data to the new system if needed
Test custom automation and integrations
Provide support and training
It’s important to provide support and training to your people through the implementation process, so they’re confident when your new ERP system goes live. This makes life easier for your employees, helps you retain staff, and ensures that your organisation keeps running smoothly during and after your transformation.
Tip: Get the support you need for a successful ERP transformation with MYOB’s network of accredited implementation partners and in-house team.
Experts in MYOB Acumatica, they can help you plan and oversee changes to your workflow and advise you of what best practice looks like in companies like yours. They’ll guide you and your team through the implementation process so the software delivers value fast.
ERP transformation challenges
ERP transformations are complex, so they can come with challenges. Here’s what you’ll need to watch for:
Change management and user adoption
Careful change management can help increase user adoption. This is especially important if your employees have been working the same way for a long time and are reluctant to change. Providing training and support to your people will help them overcome any apprehension they may feel about new workflows and technology.
Data migration and security
Any data migration comes with risk, including data loss or corruption. However, this risk can be easily managed with careful planning and support from your implementation partner.
Resource allocation and budgeting
You’ll need to set the right budget and allocate the right number of resources for a successful ERP transformation. If you don’t get this right, overspending, delays or quality issues are more likely to occur. To overcome these challenges, start with realistic budgets and maintain close oversight of the project.
Best practices for a successful ERP transformation
Learn from other successful ERP transformations with these best practices:
Align ERP transformation with your business strategy
Align ERP transformation goals with your business strategy to set benchmarks, facilitate decision-making and ensure the project will deliver valuable outcomes.
Engage stakeholders for the entire process
Engage stakeholders, including C-suite members, IT teams, end-users and your technology partner, as early as possible. From there, continue to consult and engage with these people throughout the transformation process to foster collaboration and strengthen buy-in.
Thoroughly test your system
Thoroughly test your systems before you sign off on the build. This lets you spot and fix issues and ensures your people have what they need once the system goes live.
Monitor performance
After implementation, you’ll need to continuously monitor the system's performance against your success metrics. Checking in will help spot ways to get even more value from your ERP system as time goes on.
Provide training for end-users
Providing training for end-users is essential. When your people are confident using the system, you’ll maximise the value you get from it.
Tip: Working with MYOB gives you access to support through planning, transformation and beyond. This includes a dedicated senior project sponsor, a core implementation team and ongoing support after your MYOB Acumatica platform goes live.
ERP transformation FAQs
What are the different types of ERP?
The different types of ERP system include on-premise, cloud-based and hybrid platforms where you host some functions and data in the cloud and others on your own server. Some types also cater to different business sizes or specific industries.
Generally, ERP systems fall into Tier 1 and Tier 2 categories: Tier 1 works for large, complex enterprises, whereas Tier 2 is ideal for the mid-market.
MYOB Acumatica is a Tier 2 ERP also available in industry-specific editions. These industries include construction, manufacturing, wholesale distribution and professional services.
What is the difference between an ERP transformation and an ERP implementation?
The difference between an ERP transformation and an ERP implementation is in their scope and purpose. An ERP transformation involves rationalising, streamlining and optimising business processes and systems to maximise the value of the ERP. It may involve upgrading software or implementing a new ERP system.
ERP implementation is part of the ERP transformation process, but can also stand alone. It’s the technical process of installing ERP software, but it doesn’t necessarily mean you’ll change core business processes.
What is an example of an ERP transformation?
Here’s an example of an ERP transformation: Say you run a group of medical practices. Each practice runs slightly differently — some still use paper files, while others work with different software and spreadsheets. You know that an ERP system will help centralise and streamline scheduling, financial management, inventory and supply chain. It’ll also support compliance efforts, enhance interoperability with other healthcare systems and make managing rostering easier. Real-time reporting and business intelligence will support decision-making.
However, the current workflows and systems are so outdated and mismatched that you can’t simply roll out an ERP system and expect to reap those rewards. Instead, you take a holistic approach to align and consolidate workflows across the practices before you launch into an ERP implementation.
This shift may involve changing to a centrally managed system for staffing, billing and inventory, disestablishing or establishing some roles, investing in new hardware, tweaking the patient experience and more. These workflow and process changes are positive in their own right, but also help your organisation set the stage for success when you do implement your ERP platform.
Why are ERP transformations important to businesses?
ERP transformations are important to businesses because they help maximise the value of a new or existing ERP system. In turn, this helps you optimise processes, boost efficiency and improve profitability. As complex software systems, ERP platforms represent a significant cost to your business, so it’s crucial that you make the most of your investment.
The magic of transformation
An ERP transformation can help you make the most of your business management software. Done well, it can significantly elevate your efficiency, data management and customer satisfaction while reducing costs.
What could an ERP transformation look like in your business? Talk to one of our experts to find out.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
Contributors
MYOB Subject Matter Experts