ERP implementation: a detailed guide
with key steps, costs & best practices

The feature scope of your ERP solution depends on your current needs as well as the type of business operations you want to automate. Most commonly, ERP solutions incorporate the following modules:

• Financial management, including accounting, budgeting, and forecasting
• Human resource management, including payroll, benefits, recruitment and training
• Supply chain management, including procurement, orders, transportation, supplier, and inventory management
• Customer relationship management (CRM)
• Sales, marketing, and customer service management
• Manufacturing and production management
• Project management
• Data analysis and reporting

To select an optimal out-of-the-box ERP platform, we recommend taking the following steps:

1. Explore different ERP platforms, focusing on those that align with your industry specifics, business size, and your company’s specific business processes.
2. Compare the features and functionalities of each ERP solution against your specific needs.
3. Check vendor reputation by looking into the platform’s customer reviews and case studies.
4. Explore the platform’s licensing models (e.g., subscription vs. perpetual) and ensure they align with your budget and usage needs.
5. Ask for product demos or free trials to see how the ERP works in practice.
6. Assess the platform's flexibility and ability to scale along with your business growth.
7. Examine whether the ERP vendor provides the necessary ongoing support and maintenance.

There are a lot of ERP implementation methodologies, like big bang, phased rollout by module/business unit/location, and parallel, or hybrid approaches. A well-selected ERP implementation strategy can help you avoid business risks and maximize return on investment. The choice of the implementation approach primarily depends on your needs, business requirements, and goals. For instance, a small or midsize company with a limited budget would benefit from a big bang approach that ensures more optimized investment. Due to greater risks, big companies usually opt for parallel or phased implementation that allows them to introduce changes slowly and without risks to business continuity and data consistency. If you have difficulties choosing a suitable implementation strategy, you can seek advisory help. A trustworthy ERP implementation partner will help you minimize project risks and pick the most optimal ERP adoption strategy, depending on your business size, the risks you bear, and the budget/time constraints you have.

ERP software is an inherently complex solution, therefore its implementation involves multiple risks and challenges. Organizations commonly encounter the following roadblocks:

• Data-related challenges, including migrating high volumes of heterogeneous data to the ERP database as well as addressing poor data quality across existing enterprise applications
• System integration issues driven by the need to connect the new ERP software with a broader technology landscape that often includes legacy software, fragmented third-party applications, IoT systems, etc.
• Project scope creep that roots form the inherent complexity of ERP systems supporting operations across multiple business processes and organizational units
• Customization dilemma where companies must balance the need for process standardization (essential for long-term maintainability and support) with the system flexibility to accommodate established business workflows
• Change management challenges, including resistance from business users to give up familiar processes, which can slow system adoption and negatively impact project ROI

Calculating ERP software ROI involves three steps:

1. Estimating the amount of investments required for ERP implementation and operation.
2. Measuring and assessing the benefits.
3. Calculating ROI following this formula: ROI = (Benefits-investments)/investments.

We recommend taking a feasible time frame of at least five years to correctly evaluate the benefits of ERP software against the total amount of investment. Measurable benefits usually vary from business to business and depend on the ERP project goals. For example, companies can determine how an ERP system helped boost sales, increase the accuracy of financial reporting, or decrease operational costs.

Since most AI solutions require high-quality data and integrated workflows to operate efficiently, ERP plays a foundational role in both implementing and scaling AI initiatives. A well-implemented ERP solution provides high-quality, governed data and integrated business workflows - the environment AI needs to deliver accurate results at scale and deliver maximum ROI. Therefore, organizations with mature ERP systems are better positioned not only to pilot AI, but to embed it into core operations, making ERP a key enabler of scalable and secure AI adoption.