The design stage is the part of the implementation where the focus is on creating a system configuration that will maximize the system benefits and ROI received by the client. The design phase starts near the end of discovery and planning, where project team selection and much of the documentation and planning have already taken place. The implementation team will work to translate the client’s system requirements into potential configuration options. Then, they will work closely with the project team to establish those configurations and implementation strategies that will then lead into the development phase of the project.
6 Steps of ERP Implementation Design
The design phase of an ERP implementation project can be broken down into these 6 steps:
Gather and Review Master Records
Early in the design phase, the implementation team will want to review the client’s master records. This is data that is the foundation of the current system such as:
Chart of accounts
Subaccounts if applicable
Customer master
Vendor master
Item master
This information along with the discovery information will form the basis for the implementation team to begin discussions with the project team about how to start configuring the new system.
ERP System Orientation & Walkthrough
Now the implementation team is ready to begin training the project team on the functionality of the new system by walking through the application. This usually follows the flow of various business cycles and starts the process of mapping out the procedures identified during discovery. This can take a few hours to a couple of days depending on the complexity of the business.
For example, we would open the accounts payable module and walk through setting up a vendor (contact info, payment methods, terms, etc.), entering an accounts payable invoice, showing the approval processes and the payment cycle steps. This allows the project team to see how they would do their jobs in the new system. During this session, project team members may identify areas where the new system differs in approach from the old system. In designing how to use the new system some compromising might take place between having to make slight changes to processes themselves or customizing the actual software.
A few years ago during the discovery process, I asked a project team member to explain their current steps to generate an invoice for product shipments. She smiled and said, “Don’t laugh. We get the shipping documents from the shipping department, then take a 7 part invoice and insert it into a typewriter and type the invoice”, all the while watching the incredulous look on my face. She went on to explain where the copies went and that they then entered all of the invoice information onto a 13 column pad. She concluded by saying that they had been using this procedure for 25 years and were looking forward to changing their approach. They were very excited to see how the new system would eliminate the typewriter and 13 column pad and they went on to a successful implementation.
Establish Initial System Configuration Settings
The establishment of the initial configuration settings includes tasks like designing the chart of accounts in combination with the subaccount structure. This is a key decision point and should be done with the goal of supporting the reporting requirements that arose from the discovery process. Done correctly the proper configuration can support things like companies, divisions, departments, product lines, and so on.
This is also the time to decide what the format of customer and vendor IDs – should they be simple numeric values, abbreviations for the names or some combination thereof? Advanced ERP systems like Acumatica and should support both to give you full flexibility in running your business.
If the client is a distributor and/or manufacturer, the design of the item numbering scheme and bill of materials and resources is also critical.
Create a Prototype
The teams will work together to build a prototype system configured to meet the client’s business needs. The system will consist of sample customers, vendors, items that feed financial activity into the accounting system using the first pass at a chart of accounts and subaccounts. Again the teams should look to see that the client’s reporting requirements can be met. This version of the system will be used to train the project team members and prove out some of the decisions made earlier in the design process.
Define User Roles
Modern ERP systems rely on user roles to control security. These role-based systems can be simple or complex depending on the size of the business and internal control requirements. For example, a salesperson should not have access to the cash receipts function or an AP person to be able to cut a purchase order. The project team will define these roles and users who will be using those roles. This especially applies to Acumatica, which has particularly sophisticated security functionality.
Document ERP Procedures
Along the way, the project team will document how the system should be used by creating procedures for each function. The procedures should include which position submits the initial invoice, how it is reviewed and how it is approved. The project team puts these types of procedures in place to support initial end-user training and the training of new people in a consistent manner. This is probably the most difficult part of the design process for most project teams. Some more advanced systems, such as Acumatica, allow client-specific procedures to be easily incorporated into the “Help” system as part of the user interface so that they are always a click away for the user’s reference thereby allowing for consistent use of the system.
I have been brought into numerous companies to review how they were using their current system after a few years and frustration levels with it were very high. In all cases there had been significant turnover and many if not all of the original project team had left the company. In many cases users are shown about 10% of the functionality of the system. They get frustrated with it and start building workarounds usually in spreadsheets. Having current and readily accessible procedures helps reduce this problem.
What do you consider to be the most difficult part of the design process?
Software selection and implementation can be complicated. We can get caught up in the hype we hear. Ensuring you get the software you need, when you need it, is what we’ll cover in today’s article.
To begin, ask yourself if a new software solution, such as a new Enterprise Resource Planning (ERP) system or an upgrade to an existing solution, will increase productivity and efficiency. Are there other considerations? Maybe a new solution or upgrade will help your business be more precise with its data, encourage better inventory practices, or smooth out the payroll process.
Let’s go through five critical considerations when selecting a software solution for your business.
1. Make sure there is a compelling business reason to make the change.
Really think through the problem you are trying to solve. Talk to your staff to get their perspective.
Are you entering the same data multiple times?
Are human errors costing you money?
Are most of your operations being handled in Microsoft Excel or something similar?
Do you have inventory control issues? Are you missing sales because you are running out of merchandise?
Do you have trouble getting good data to make the right decisions for your business?
If you answer yes to any of these, you have a good reason to change your software.
2. Is the timing right for your business to make the change?
Sometimes business owners don’t realize what a big deal selecting software is. Loss of productivity, employee dissatisfaction, and cost are just a few of the side effects. In order to minimize these risks, consider the following steps:
Set clear goals for the new software solution. Don’t rush through this step. Know what problem you are solving and what success really looks like.
Involve as many members of the organization as possible. More employees on board means faster adoption.
Business requirement gather is critical. Document your business processes as they are today and as you would like them to be. Put it in writing. Share the business requirements internally for consensus.
Document things that you know are unique to your business. Maybe your geography creates unique challenges. Does your product use special materials that require a specific lead time to acquire? Are the existing software solutions in your business antiquated? Whatever the issue, get it in writing.
Designate a superuser. This is a person that will know all areas of the solution inside and out. This will be your go-to person for help with the solution. This individual will help bring other employees on board with the new system.
Have the right expectations- implementations take time. It took you a long time to get to a software decision. It will take just as long, if not more time, to implement the solution. Sometimes a phased approach will give you a faster return on your investment. Get the solution provider to help you determine the best manner for you to proceed.
3. Finding the best solution for your business.
Every business is unique and has its own issues. One thing is universal: your competition is doing something similar. What business software solutions are they using? Are they successfully running their businesses? Find out all you can about the other guy. You’ll benefit from the information. Here are some ways to benchmark what others are using:
Participate in industry groups. You will find others who share your challenges. These are environments where you can share information and learn. Many of these groups are free to join.
Use Google. Search for “Cloud ERP”, “Accounting Solutions”, “inventory control applications”, “Manufacturing” or whatever applies to your business problem.
Use user-based rankings and ratings sites:
G2Crowd will rate the applications based on the response and comments from actual users. https://www.g2.com/
Evaluate the Growth Potential- ensure the software you are evaluating is using the latest technology. You are about to make a big investment. Technology changes so quickly that buying old technology doesn’t make sense, even if it saves you money. Some vendors are coming up with “new products” that are really old products with a facelift. Be aware of this. Ask the hard questions to get the facts.
Select 3 or 4 software solutions to evaluate. Only with choices can you make a reasonable decision. You can often save substantial money when you compare solutions.
Spend the time to test the software and make sure it will work for you. Have your staff try to use the solution. Bring any challenges to the software provider. Find a resolution before you buy.
Don’t be afraid to ask for demos and guidance from the vendor. Customer success and presales resources exist in many companies. The goal is to ensure customers effectively use the solutions.
Check the reviews for the products you are evaluating. Most people will take the time to review when they are not happy with a solution. Less will review when they are happy. Make a balanced decision.
Determine how will it interact with other software you currently use.
Remember to ask about the hidden value. After purchase service and training are serious differentiators that can easily be overlooked.
4. Find the right partner.
Most of the ERP systems out there are sold and implemented by technology partners. Make sure you have the right partner. You are about to have the equivalent of open-heart surgery for your business, and you don’t want just anyone to do that job.
Implementing new software is no easy task. You will be working with your partner for some time. Make sure this is a relationship you want to be in for a while. Check references. Check their website. They usually have customers listed on their site. You may recognize a name of a company you know. Give them a call. Check their social media. Maybe ask a trusted colleague or other industry reference.
5. Look beyond the implementation.
There are many costs to consider when running an ERP system in your business. The costs aren’t all obvious. Look for the hidden costs.
Support
Upgrades
Ongoing Training
Customizations for your business
Make sure you understand what it will cost you to run your new software. Be prepared for this. Many businesses are surprised by the cost of supporting their software. Implementing your new software was a big investment — you will need to maintain it just like you do a new car so you will need to plan for it.
These are just a few points but if you need help or have a question, please do not hesitate to contact me.
There are 6 phases that make up any ERP implementation project: Discovery and Planning, Design, Development, Testing, Deployment, and Ongoing Support.
Though this is an iterative process, there will be a tendency for phases to overlap, and for movement back and forth between phases.
With our team, who specializes in Automotive Aftermarket software solutions and has over a century of combined experience in financial software and ERP implementations, we have outlined the process we use with our customers. See the steps below.
Click the image above to download the infographic!
ERP Implementation Plan
1. Discovery and Planning
This first phase begins during the sales process and then continues post-sale. During this period, the project team will be created. There will be initial meetings and documentation developed as the team works to identify current issues and potential solutions. An important part of this phase is constructing the project plan, which will serve as a guide throughout the rest of the project.
2. Design
We’re not talking about painting the office or rearranging furniture. Instead, what will the new enterprise-wide system look like and how will it be used in the organization? In the ERP Design phase, the project team and implementation team will be working out the various configurations for the new system, defining roles, and documenting standard procedures.
3. Development
The purpose of the development phase is to prepare the entire system for going live. This includes activities such as completing any necessary customizations, developing user trainings, and importing data. With ERP implementations, like any custom software development projects – “First, Solve the problem. Then, write the code.”
4. Testing
Is the system’s functionality aligning with the set requirements for the project? The Testing and Development phases will often overlap, as the implementation and project teams jump between the two – constantly fine tuning the configuration. By the end of this phase, project team members will be comfortable doing their jobs in the new system. This is the final step before diving into the live system.
5. Deployment
The project team and implementation team will assess the situation and make the final go or no-go decision. Prior to going live, the final data will be loaded and validated. The project team will train other employees who will then start working in the new system, and completely stop using the old one.
6. Ongoing Support
Once the ERP system has gone live, the purpose of the project team will shift. Over time, as the way the users work within the system evolves, adjustments and changes to the system configuration may be needed.
Next Steps
We hope this article serves as a valuable resource to you and your organization when exploring automotive ERP projects as well as other enterprise systems. Other articles you might find of interest or of use in your ERP research include:
If you are interested in auto parts inventory and management software or automotive aftermarket ERP solutions that can manage your company from end to end, these articles might be helpful:
Specializing in software solutions for the Automotive After Market industry, PC Bennett has been implementing ERP systems and providing ongoing ERP support for companies since 2002, and we are happy to assist as we know ERP selection and implementation can be a large endeavor.
PC Bennett Solutions offers a personalized, full-service experience for customers by implementing business management technology. Through a hands-on approach, PC Bennett Solutions helps companies get the most out of their software system. The team provides training, implementation and customization of Acumatica. Headquartered in the Seattle area, PC Bennett Solutions is one of the largest exclusive Acumatica resellers. For more information, visit www.pcbennett.com.
If you’ve ever implemented new software, you know it can be painful. Change is hard. It takes your time, energy, and money, and frequently you come out the other side feeling like you haven’t gotten what you signed up for. What would you give to make it easier? We’ve come up with a sure-fire way to lessen the frustration and ensure success. Mentoring.
I like Wikipedia’s definition of Mentorship: Mentorship is a relationship in which a more experienced or more knowledgeable person helps to guide a less experienced or less knowledgeable person. The mentor may be older or younger than the person being mentored, but he or she must have a certain area of expertise. It is a learning and development partnership between someone with vast experience and someone who wants to learn. Interaction with an expert may also be necessary to gain proficiency with/in cultural tools. Mentorship experience and relationship structure affect the amount of psychosocial support, career guidance, role modeling, and communication that occurs in the mentoring relationships in which the protégés and mentors engaged.” (https://en.wikipedia.org/wiki/Mentorship)
As a professional services company focused on the Enterprise Research Planning (ERP) industry, we see a variety of customers from many different market spaces. At PC Bennett Solutions, we want to empower our customers to self-service their ERP (Acumatica) system at the highest level possible to obtain maximum efficiencies while using the software. To do that, we take the approach of “teaching you to fish” through a mentoring process. This is done so that you and your team can sustain your system with minimal input from us. If we do it correctly, we not only have a customer for life, but the value we impart is tangible and the Return on Investment (ROI) is measurable.
Why Customer Mentoring? Everyone does things a little differently, and our customers are all unique. The need arises to mentor our customers on how we approach work that will be performed. This can encompass our:
Implementation methodology
Timeline and expectations
Go-live
Support
Billing and maintenance
…and everything in between. It is paramount to a good partnership to have these mentoring sessions. Through these sessions, the customer gets comfortable with the process and it helps disperse feelings of fear and anxiety. If you know when and why something is going to occur, you are less anxious and the potential to become frustrated because of overages in budget or extensions to the project timeline are minimized or averted altogether.
The Pain of an ERP Implementation
Let’s face it – ERP implementations are painful, sometimes ugly, and can feel like open heart surgery for a business. This is a perfect opportunity for the implementor (what we call a business partner) to mentor you through the process to achieve a successful outcome. At PC Bennett we use a proven methodology to walk through our implementation process.
We communicate with you beforehand about the challenges and emotions that will be felt as we go through the process. We always show the Kubler-Ross Change/Grief Curve, JM Fisher’s version, at our kickoff meeting as it is a great visual for showing the typical paths an ERP implementation may take. We want you to stay on the “purple path” as close as possible.
Phases of an ERP Implementation
PC Bennett utilizes a structured implementation methodology to ensure Acumatica is configured and implemented in a manner that best supports your business requirements. We communicate this five-phase process to you from the onset of the project and all the way through to ongoing support and after:
Discovery and Planning
This phase is probably where we mentor the most. I always tell customers in our kick-off meetings that this is the one area they will likely get the most frustrated. Discovery usually takes the longest and is the most detailed phase during an implementation. The general rule-of-thumb is the Discovery Phase will take between half and two thirds of the total project time. As the implementors, we want to get the project right from the very start. To do this requires determining any current special processes and then lining them up with standard ones in Acumatica. We try to work as much out-of-the-box as possible and leave customizations as a last resort.
This phase can and will be an extremely frustrating time because customers don’t see anything happening, as most of the work is internal to the PC Bennett implementation team. Communication and transparency is critical during this phase. We want you to know what is being accomplished.
Install or establish your Acumatica site and create your Company files.
Plan and hold a series of meetings with you to establish a baseline of understanding of the company’s business structure, current operational practices and business requirements.
Prepare and deliver a “Significant Business Processes” (BRD) document outlining PC Bennett’s understanding of key operational practices that may impact the project’s budget, timeline and scope, as well as the Configuration Design and implementation of Acumatica.
Prepare and deliver a project Statement of Work (SOW).
System Initialization and Design
During the System Initialization and Design phase, we start the process of core configurations within the system (master records such as Accounts, Sub-accounts, Customer, Vendors, and Inventory). During this phase we typically go on-site for an Orientation session which helps us expose the customer to Acumatica. The Orientation also helps get the Project Team members engaged by going through the majority of the transaction screens and key reports.
Key Activities & Deliverables during this phase:
Plan and conduct a series of Software Orientation Meetings with you and your team to establish a baseline understanding of Acumatica’s configuration requirements and impact to aid the Company to make informed decisions in its configuration.
Establish and document an initial Configuration Design of key components within the application.
Establish module-level preferences and validating components to be used within by the system’s master and transaction levels.
Establish a Pilot Configuration you can use to test and validate the basic configuration of Acumatica.
Initial Training to your personnel on processing transactions within Acumatica for the purposes of validating the Pilot Configuration.
Initial Training to personnel on the configuration of areas in which your company has sole responsibility (e.g. user security, creation of Notification Templates).
Obtain your acceptance of Pilot Configuration and approval for final System Configuration.
System Configuration
System Configuration is the last phase before we take you through testing and training. During this phase a pilot, or sandbox, site is created where all of the final configuration is completed. We want you to complete as many of these tasks as possible for a couple of reasons. One, to engage you in the processes within Acumatica, and the second is for you and your team to take ownership of the system.
Key Activities & Deliverables during this phase:
Import final master records as applicable to modules “in scope.”
Review final configuration to identify configuration gaps and provide guidance to correct these gaps.
Migrate final configuration to a pilot company file for final testing and training.
Testing and Training
PC Bennett is responsible for initial preliminary testing of the setup and data converted, but the bulk of the testing responsibility will fall to your Project Team. An understanding of the data is required to test the data and processes. Therefore, the Project Team will have the majority of the work in this area.
Testing will occur through each Area Leader. Testing will not occur until the initial setup occurs and preliminary data entry has been completed. The testing environment should be as close as possible to the live environment to establish a greater level of comfort with system processes and the like.
PC Bennett trains throughout the project. For instance, the Project Team will get overall Acumatica ERP training once the system has been installed and the preliminary setup has occurred. Training will occur in the following areas:
General usage and module configuration
Transaction processing and month-end closing
Reporting and inquiry overview
We recommend that the Project Team understands the system as a whole and its members are encouraged to attend as many of the training classes as possible. Once the system has gone through the bulk of testing, a second training schedule will be created for users not on the project team to receive training in their functional area as needed.
Key Activities & Deliverables during this phase:
Conduct “Train the Trainer” training to a company-designated “Super-user” responsible for transferring system and functional knowledge to Company personnel.
Perform a mock “go-live” dry run for the purposes of validating the successful import of open documents for in-scope modules, as applicable, and a sample of Historical General Ledger Trial Balances.
Obtain overall User Acceptance and make a “go/no-go” decision.
Deployment/Go-Live
Once Testing and Training has been completed, we work with you to determine a mutually accepted “go-live” date. Once that is established, the following activities and deliverables will occur for this phase:
Migrate opening balances for all “in scope” modules.
Assist you in the importing of historical trail balances as needed to support comparative financial reporting.
Provide on-site training and assistance to personnel during the go-live transition to ensure successful use of Acumatica.
Ongoing Support – Customer Care Plan
PC Bennett is dedicated to the long-term success of your Acumatica investment. The Customer Care Plan ensures you get the most from your system by providing expert, reliable personnel to train and advise you and your team. Our dedicated support staff is ready to solve any technical issues, and experienced, dependable software developers keep customer systems upgraded with the latest software enhancements.
Unlike traditional ERP customer support, which is billed on a per-hour or per-incident basis, PC Bennett’s Customer Care Plan is billed as a monthly subscription. This helps you budget support expenses and avoid any unpleasant billing surprises.
What PC Bennett’s Customer Care Plan includes:
Unlimited Support Tickets
Correcting data-related issues
Troubleshooting ERP processing issues
Solving security related issues within ERP
Troubleshooting and reporting issues to software vendor
Documenting issue resolutions or workarounds
Software Upgrades
One Minor Acumatica Upgrade per year (e.g. version 2018R1 to 2018R2)
One Major Acumatica Upgrade per year (e.g. version 2018R2 to 2019R1)
Unlimited software patches required for bug fixes
Upgrading any PC Bennett customization packages or products
Unlimited Training
Unlimited training on all modules that have been implemented
Training of new employees
Mentoring doesn’t stop after the implementation is completed. We work hand-in-hand with you throughout the year to determine areas we can improve and optimize Acumatica. We want to continually add value to what our customers are doing with Acumatica. Our CEO, Patricia Bennett, makes it a point to see each and every customer at least once a year. This is getting to be a difficult task as our customer base grows, but it will continue because we feel so strongly about making and maintaining a personal connection with our customers. The time and expense are inconsequential compared to the outcomes of face-to-face meetings.
Because of the way we work with our customers, PC Bennett is very proud to have been recognized with two awards at Acumatica’s 2019 Summit. These awards go to the very heart of why we mentor. We start the mentoring process from the first minutes we engage with you as a future customer all the way through the lifetime of the entire engagement.
The first award received at the Acumatica Summit for work in 2018 was the Customer Service Excellence Award which is given to the partner that has the highest Customer Satisfaction score. Acumatica polls all of their customers twice a year, and PC Bennett had the highest rating out of almost 400 partners. This award goes to the very core of what PC Bennett is trying to accomplish in creating “Customers for Life”.
The second award was the Modern VAR of the Year. This award is special because it identifies a partner who continues to evolve their practice from a traditional professional service model (time and materials) to one based on a subscription model (value based – fixed fees). Acumatica likes to describe themselves as the disruptive teenager in the middle of the market cloud ERP space. PC Bennett likes to say we are the disruptive teenager in the Acumatica partner channel because of our innovative practices. The way we mentor our customers is probably the single largest contributor to why we were recognized with this award.
Go forth and mentor. Trust me, it will be a rewarding journey both professionally and in the lifetime relationships you build!
Tim O’Sullivan is an owner and Chief Operating Officer at PC Bennett Solutions, a Value-Added Reseller in the Acumatica partner chain. He oversees the day-to-day operations of PC Bennett including the consulting and implementation teams. He has over 25 years in the Tier 1 and 2 ERP spaces with a focus on Distribution and Manufacturing.
PC Bennett Solutions offers a personalized, full-service experience for customers by implementing business management technology. Through a hands-on approach, PC Bennett Solutions helps companies get the most out of their software system. The team provides training, implementation and customization of Acumatica. Headquartered in the Seattle area, PC Bennett Solutions is one of the largest exclusive Acumatica resellers. For more information, visit www.pcbennett.com.
What is an ERP (Enterprise Resource Planning) System?
Most people start by talking about the various components of ERP systems. I’ll get there, but first a little background – what is an ERP? In the 1980’s software companies came out with MRP systems that ran on mainframe systems initially. MRP at that time was an acronym for “Materials Requirements Planning”. These systems were focused on reducing material shortages and excesses on the manufacturing floor.
At that time, and still today, MRP calculations generally look at demands and supplies of inventory items. Demands include forecasts, sales orders and manufacturing orders. Supplies are inventory, purchase orders and manufacturing orders, which both consume inventory and produce it. The final factor was a bill of materials, which in complex products can be multiple levels deep. When MRP runs it looks at demands, supplies, bills of material and other planning parameters and then suggests that buyers and planners take actions to place, adjust or cancel purchase orders and manufacturing orders.
Next software companies and manufacturing companies moved to include resources, such as production workers and equipment in the planning process to help manage capacity and production levels. They also linked inventory-related activity to the accounting systems so that there was a closed loop, integrated system which enabled manufacturers to better manage and account for the business.
In the 1990’s Customer Relationship Management, or CRM, systems started to catch on. These systems allowed companies to manage the sales process and track activity with customers. They started as standalone products but eventually MRP companies and CRM companies merged, or MRP companies developed their own CRM systems. That left the marketing with a challenge of what to call the combined systems so they ended up with Enterprise Resource Planning, or ERP as a label for the combination of MRP and ERP systems.
Software companies that did not have a manufacturing option picked up on the ERP label as well (and don’t necessarily have the “P” or planning component). These days the ERP term is used to label accounting and operations software no matter the industry.
Perhaps a simpler way to explain what ERP systems are is to think of them performing several functions:
What does ERP do?
Lead to Cash
Lead to cash starts with the process of acquiring new customers, securing orders, delivering products and services and finally invoicing for and collecting for those products and services. Typical software components include:
Lead management
Customer management
Sales order entry
Shipping
Project costing
Invoicing
Cash receipts
Procure to Pay
Procure to pay starts with ordering things like services, inventory, expense items and assets and then receiving them followed by recording the invoices and paying for those items.
Purchase requisitions
Purchase order management
Receiving
Production
Services delivery
Invoice entry
Cash disbursements
Reporting
The lead to cash cycle and procure to pay cycle both generate financial transactions that end up in the “books” or general ledger, which is the foundation of financial reporting. In addition the other cycles can also provide information for reporting and analysis of business performance. Some systems include report generation tools that are used to define and produce financial statements such as income statements and balance sheets. But some systems require an additional external tool to design and produce those reports. Most systems have a query tool that allows users to create their own views of the data. And most of ERP systems support exporting data to Excel for further analysis and some allow for the automatic refreshing of the Excel data without logging into the ERP system.
In the end, the primary objective of ERP systems is to enable companies to better manage their operations and provide better information to decision-makers at all levels. So if you are looking for a system make sure the systems you consider meet your information needs and company objectives.
