What Is an ERP?
An ERP is a management software system. It is made up of several modules. Each module corresponds to a business function within the company. The sales management module, for example, addresses the needs of the sales team. To continue with this example, it is common for the sales management module to be called a CRM — just like some standalone software products that only serve the sales function within a company.
An ERP allows a company to use a single software platform with multiple integrated modules, instead of relying on several specialized applications that must be connected to one another. The French translation of ERP, progiciel de gestion intégré (integrated management software suite), highlights this defining characteristic: native integration.
For example, a digital marketing agency may need both sales management and project management capabilities, among others. It could adopt an ERP like Odoo, Furious Squad, or Axelor to cover both needs, or use a specialized tool for each — Asana for project management and HubSpot for sales management, for instance — and integrate them to streamline information flow and avoid manual re-entry across two systems.
What Is an ERP Project?
An ERP project can be an implementation, an upgrade, an enhancement, or a support engagement. Most commonly, the term “ERP project” refers to an implementation.
An implementation can mean deploying an ERP for the first time, or replacing an existing one.
The constraints of an ERP project are timelines, costs, and scope.
Project quality results from managing these three elements effectively. Quality is the most challenging dimension of an ERP project to grasp.
It encompasses organizational, legal, functional, application, security, and other aspects depending on the project context (regulatory requirements for regulated industries, environmental considerations for eco-responsible companies, etc.).
The Key Stages of an ERP Project
Most ERP projects follow these stages:
- Preliminary analysis,
- Detailed analysis,
- Prototyping,
- Configuration,
- Testing,
- Data migration,
- Go-live,
- Training,
- Support.
What Is ERP Project Management?
ERP project management is the application of project management theories and methodologies to the various types of projects related to ERP software.
Different project management approaches (agile, waterfall, etc.) arrange these stages according to their own principles.
In addition, the vendor of the chosen ERP may recommend adding or removing stages depending on the size or industry of the company.
How the Chosen ERP Influences Project Management
Implementing SAP and implementing ERPNext do not require the same methods. Furthermore, different vendors may have their own methodologies and “best practices.” ERPs from vendors like SAP or Infor are known for having complex implementation methodologies, while ERPs like Odoo have a reputation for being more flexible.
Of course, these assessments should be taken with nuance. An implementation project for an ERP considered “easy to implement” can also get bogged down if the chosen project management methodology is not followed.
How Company Size Influences Project Management
A multinational with over 1,000 employees and an SMB with 10 employees will not have the same approach, nor the same constraints and risks, when it comes to an ERP project. For example, a multinational will need substantial project governance with several committees — a steering committee, a project committee, an operations committee, and others as needed. Meanwhile, an SMB can move forward with a project committee of two or three people.
To Wrap Up
ERP project management is, first and foremost, project management. Best practices and methodologies must be followed to reduce the risk of project failure. When applied to the ERP domain, project management must be adapted to meet the project’s objectives.
