Before implementing an ERP system, it is important to understand what an ERP system actually is. An ERP system (Enterprise Resource Planning) is a company-wide software solution that integrates, manages, and automates all core business processes. The goal is to efficiently manage and represent information, workflows, and resources such as materials, personnel, capital, and data within a single system. By controlling and optimizing processes, the ERP system ensures that all operations within the company run smoothly and efficiently.
The system supports the various departments in their daily work. The core modules of an ERP system include:
Financial Accounting
This module includes functions such as creating and managing invoices, preparing balance sheets, and performing cost accounting. It forms the financial foundation of the company and ensures compliance with legal requirements.
Procurement and Purchasing
All processes related to ordering, supplier management, and demand planning are managed here. The goal is to ensure an efficient supply of materials and services for the company.
Sales and CRM (Customer Relationship Management)
This module supports customer management, quotation creation, and order processing. It helps maintain customer relationships and ensures that sales processes are carried out efficiently.
Warehouse and Logistics
Inventory management, shipping, goods receipt, and other logistics processes are organized in this module. It ensures that materials and products are available at the right time and in the right place.
Production
Production planning, management of bills of materials, and control of machines and manufacturing processes are key components of this module. It enables smooth and efficient production. To further increase efficiency, production processes are analyzed and optimized in detail.
Human Resources (HR)
This module supports payroll accounting, employee time tracking, and applicant management. It contributes to the structured organization of all personnel-related tasks.
The core characteristic of an ERP system is the shared database that all modules access. This means all information is stored centrally and is always up to date. For example, the sales department can directly access inventory levels maintained by logistics, or the accounting department automatically receives relevant data from purchasing. This centralized data management eliminates redundant data entry, minimizes potential sources of error, and increases transparency throughout the entire company. The result is more efficient collaboration between departments and a stronger basis for decision-making at all levels.
Implementing an ERP system is a strategic decision with far-reaching effects on the entire organization. To ensure the project starts in the right direction from the beginning, a thorough analysis phase is essential. Comprehensive analyses provide the foundation for precise planning and the definition of clear goals as part of the ERP implementation. In this first part of our knowledge base series, you will learn why the analysis phase is so important, which steps it includes, and how to set the course for project success.
The analysis phase forms the foundation for the entire ERP project. Its purpose is to create clarity about the current situation, objectives, and requirements. From the outset, an initial assessment of requirements and project scope is crucial to enable focused and efficient planning. Without a solid requirements analysis, there is a risk that the ERP system will be planned without properly addressing the company’s actual needs. Mistakes made in this early stage often prove costly and time-consuming later on.
Before concrete actions are taken, the following questions must be answered: Why should an ERP system be implemented or replaced?
The objectives can vary widely - from increasing process efficiency and digitalizing the entire value chain to preparing the company for international expansion.
A structured execution of the analysis phase is crucial for the success of an ERP project. A detailed checklist helps to systematically capture all necessary steps and identify risks at an early stage.
Strategy alignment is a key step in the implementation of an ERP system. In this phase, the company’s long-term objectives are aligned with the possibilities and benefits of the ERP software. The goal is to develop a clear strategy that ensures the new ERP system not only meets technical requirements but also supports the company’s overarching goals.
A central aspect of this alignment is the comprehensive analysis of existing business processes. This involves examining how current processes function and identifying areas for improvement. The ERP software plays an important role here by automating workflows, eliminating media discontinuities, and increasing transparency. By strategically linking corporate goals with the strengths of the ERP system, a company can boost efficiency, reduce sources of error, and sustainably increase productivity.
Another advantage of this step is that the implementation of an ERP system is not seen as a purely IT-driven project but as a strategic initiative for the company’s overall development. This ensures that the system is optimally tailored to the organization’s specific needs and delivers the desired results - from improving data quality to supporting new business models. Strategy alignment thus forms the foundation for successful ERP implementation and for strengthening long-term competitiveness.
Strategy alignment is a key element of the analysis phase. It ensures that the planned ERP implementation is aligned with the company’s long-term goals.
Promoting growth: Establish scalable processes and structures to support the company’s growth efficiently.
Increasing efficiency: Seamless workflows, automated postings, and centralized data maintenance reduce costs and increase productivity.
Enabling internationalization: The system must support multiple languages, multiple currencies, and country-specific compliance requirements.
Enhancing transparency: A centralized data repository and role-based analyses enable informed decision-making.
A successful strategy alignment ensures that ERP implementation is not merely an IT project, but becomes the central system for executing the company’s business strategy.
Another important step in the analysis phase is the assessment and detailed documentation of the company’s current processes. All relevant workflows are recorded, analyzed, and evaluated in terms of their potential for improvement. To identify optimization opportunities, processes are examined in full detail.
Without a clear understanding of existing processes, it is impossible to make well-founded decisions about the future system architecture. Process documentation also helps to identify weaknesses and manual steps that can be automated or optimized through the new ERP system.
Workshops with departments
Interviews with key users
Process diagrams (e.g., BPMN)
Analysis of existing system landscapes and data flows
The goal is not to transfer existing processes into the new system one-to-one, but to rethink and redesign them in the context of digitalization and efficiency.
Based on the analyzed processes and strategic goals, the next step is the definition of requirements. This describes which functions, modules, and interfaces the ERP system must include in order to optimally support the company’s processes.
A good requirements definition is characterized by the following aspects:
Functional requirements: Which specific tasks should the system perform? (e.g., automated invoice verification, multi-level approval workflows, serial number management)
Non-functional requirements: What technical conditions are important? (e.g., web capability, user-friendliness, performance)
Integration requirements: Which systems need to be connected? (e.g., e-commerce platforms, document management systems)
Module requirements: Which ERP modules are actually needed? (e.g., financial accounting, warehouse, production, HR)
These requirements serve as the foundation for system selection, the creation of the ERP requirements specification, and implementation planning.
An ERP project affects nearly all areas of a company. Therefore, professional stakeholder management during the analysis phase is a key success factor.
The goal is to create transparency and acceptance within the project. Those who are informed, involved, and heard early on will actively support the project and help prevent resistance later.
A frequently underestimated aspect of the analysis phase is realistic resource planning. Without a clear understanding of the resources available and required, timelines and project goals cannot be achieved.
Solid resource planning provides the foundation for realistic scheduling, project control, and successful project completion.
The analysis phase is more than just a mandatory first step; it is the decisive foundation for all subsequent phases of the project. Those who approach it carefully create clarity, transparency, and confidence for everyone involved. Through a structured approach that includes strategy alignment, process analysis, requirements definition, stakeholder engagement, and realistic resource planning, risks can be minimized and the chances of project success significantly increased. Especially in complex ERP projects, structured planning and management of each project stage are essential to ensure success.
After the analysis phase, one of the most important decisions in the entire ERP project follows: selecting the right ERP solution. From the very beginning of the selection process, an initial assessment of vendors and solutions is essential in order to better evaluate the quality and suitability of the offers. Choosing the right solution is crucial to ensuring that the system meets the company’s individual requirements, is scalable, and provides efficient support in day-to-day operations.
The ERP market is large and diverse. There are specialized solutions for small businesses, scalable systems for medium-sized companies, and highly complex ERP platforms for international corporations. Cloud-based models compete with on-premises solutions, and open-source ERP systems stand alongside fully commercial suites.
To provide you with an initial overview, here is a comparison of 15 well-known ERP systems, organized by target group, industry, deployment type, and key features.
| ERP System | Target Group | Industry | Deployment Type | Key Features |
|---|---|---|---|---|
| SAP S/4HANA | Large enterprises | All | Cloud / On-premise | Globally used, scalable, complex |
| Microsoft Dynamics 365 | SMEs to large enterprises | Trade, services, industry | Cloud | Integrated with Microsoft tools, modular |
| Oracle NetSuite | Mid-sized companies, corporations | E-commerce, SaaS, finance | Cloud | Strong financial functions, globally oriented |
| Sage X3 | Mid-sized companies | Manufacturing, trade | Cloud / On-premise | Good cost control, fast implementation |
| Odoo | SMEs | All | Cloud / Open Source | Modular, open source, cost-effective |
| IFS Cloud | Mid-sized companies, corporations | Plant engineering, aerospace, manufacturing | Cloud | Project-oriented, strong service focus |
| proALPHA | Industry, manufacturing | Mechanical engineering, production | On-premise / Cloud | Designed specifically for industrial companies |
| abas ERP | Mid-sized companies | Manufacturing, mechanical engineering | On-premise / Cloud | Highly adaptable, strong in German-speaking markets |
| Infor CloudSuite | Mid-sized companies, corporations | Food, fashion, manufacturing | Cloud | Industry-specific solutions, AI support |
| Lexware Business | Small businesses | Accounting, office | Desktop / Cloud | Entry-level solution for small companies |
| Haufe X360 | SMEs | Services, manufacturing | Cloud | Cloud-native, modern user interface |
| SAP Business One | SMEs | All | Cloud / On-premise | SAP structure in a smaller version |
| weclapp | SMEs | Agencies, trade | Cloud | User-friendly, excellent price-performance ratio |
| Epicor ERP | Mid-sized companies | Manufacturing, distribution | Cloud / On-premise | Industry-focused, highly customizable |
| BüroWARE / mesonic | SMEs | Trade, services | On-premise / Cloud | German-language solution, modular structure |
Once it has been determined what services the ERP system should provide, these must be documented in a structured way and communicated to potential vendors. A detailed project plan is essential for systematically planning the implementation and management of the ERP introduction, defining responsibilities, and coordinating the timeline. A well-prepared ERP specification document ensures the comparability of proposals and prevents misunderstandings during later implementation.
Theory is important, but practical testing is decisive. After an initial preselection of three to five suitable systems, the vendors are invited to demos or even individual workshops with real use cases from the company. It is important that the solutions are examined in detail to enable a well-founded decision.
Selecting an ERP system requires a structured process that goes beyond a superficial comparison of functions. To identify the most suitable solution, companies must define clear and well-founded evaluation criteria. These make it possible to objectively compare different vendors and make a decision based on transparent standards.
A key criterion is the functional coverage of the system. The central question is whether the offered modules and features truly support existing business processes or whether compromises would be necessary that could later lead to inefficient workarounds. The better the standard functions of an ERP system match the company’s specific requirements, the lower the need for customization - saving both time and cost.
Equally important is the user-friendliness of the software. Even the most powerful ERP system is useless if users cannot operate it efficiently in daily work. An intuitive, modern interface, a logical menu structure, and role-based navigation are essential success factors. Systems with a steep learning curve require more training effort and are often met with resistance from users, which can endanger overall acceptance within the company.
Another key evaluation criterion is the scalability and expandability of the solution. An ERP system should be able to grow with the company - in terms of both user numbers and new functions or business areas. This is especially important for internationally oriented companies with multiple locations or evolving requirements, as the system must remain flexible and not become a technological dead end.
In today’s IT landscape, integration capability is also a must. A modern ERP system does not operate in isolation - it must integrate seamlessly with the existing software environment, such as e-commerce systems, document management solutions, or industry-specific applications. Open interfaces, API capability, and compatibility with standard protocols like REST or SOAP are of great importance here.
All of these criteria should be defined, prioritized, and weighted in advance together with key stakeholders. On this basis, a measurable decision matrix can be created, enabling a systematic comparison of different ERP vendors and solutions. This increases transparency in the selection process and allows for a traceable and objective decision - a crucial foundation for later project success and long-term acceptance within the company.
The cost of an ERP system is determined by more than just license fees. The Total Cost of Ownership (TCO) includes all ongoing and one-time costs throughout the entire system lifecycle. Comprehensive analyses are essential to realistically assess total costs and investment security.
| Cost Type | Examples |
|---|---|
| One-time costs | Licenses, implementation, data migration, training |
| Ongoing costs | Maintenance, updates, cloud fees, support, hosting |
| Internal effort | Employee hours for project work, key users, training |
| Customization & development | Module adjustments, interface development |
| Future costs | Upgrades, system replacements, additional modules |
After selection and contract signing, the actual technical implementation of the ERP system begins. A central component of this phase is the installation of the ERP system, during which the software is set up on the designated systems and all system requirements as well as compatibility are checked. The goal of this phase is to configure and adapt the system so that it optimally reflects the specific requirements of the company. This process includes several coordinated steps.
First, the basic configuration takes place. In this step, key structures such as company locations, company codes, or storage locations are set up. At the same time, user and role management is defined: employees are assigned system roles with graduated permissions so that they can access only relevant data and functions. Workflows such as approval processes in purchasing or automated escalations in the event of delivery delays are also defined during this phase.
Where the standard functions are not sufficient, customization is applied. Screens, fields, forms, or even entire processes are adapted - for example, by adding mandatory fields, new status definitions, or adjusted menu structures. It is important to stay as close to the standard as possible in order not to hinder later updates.
Another critical step is the integration of existing systems. Often, third-party systems such as CRM, e-commerce platforms, time tracking, or document management systems need to be connected. Through standardized interfaces (APIs) or middleware, data can be exchanged automatically to avoid manual double entries.
Finally, reporting is configured. Dashboards, KPIs (Key Performance Indicators), and automated reports ensure that managers always have access to current and relevant key figures. Modern ERP systems make it possible to prepare individual analyses graphically and to provide them regularly by email or in a central cockpit.
Technical implementation is the basis for later success – it determines how efficiently, securely, and transparently the new ERP system can be used.
An ERP system is only as good as the data it works with. Data migration is therefore one of the most critical phases of any ERP project. In this process, all relevant information from legacy systems is structured, cleansed, and transferred into the new ERP system.
Professional data migration reduces risks, improves data quality, and creates the foundation for successful work in the new system.
An ERP system is only as good as its users. Without a structured training strategy, even the best software can fail in everyday operations. Well-trained employees ensure error-free processes, higher system acceptance, and long-term efficiency.
Not all users need the same information. An effective training concept takes into account the specific requirements of each department. For example, warehouse staff learn different functions than accountants or sales employees. This role-based differentiation ensures relevance and practical applicability.
Purely classroom-based training is often not sufficient in modern work environments. Companies should therefore rely on a mix of methods. Live training sessions, supplemented by e-learning platforms, short video tutorials, or digital manuals, allow for individual learning at one’s own pace. In-app help and tooltips within the system itself also provide direct support during use.
The establishment of a key user network has proven particularly effective. These specially trained employees act as multipliers within the company. They support teams with questions, share knowledge, and actively contribute to user acceptance. Ideally, key users are involved early in the implementation process.
To prevent training content from being lost, it is advisable to build an ERP knowledge database. This database contains process documentation, step-by-step guides, FAQs, and best practices that can be accessed by all employees at any time. This reduces follow-up questions and promotes independent work with the system.
Before an ERP system goes live, it must be thoroughly tested. This is the only way to identify sources of error early and realistically simulate actual system operations. Testing helps prevent costly issues after the go-live.
First, so-called unit tests are carried out. These test individual functions, such as correct tax calculation or the creation of a customer order. Next come module tests, which represent complete process chains within a functional area - for example, the entire sales process from quotation to invoicing.
Integration tests are particularly critical. These verify whether all modules and systems communicate correctly with each other. This is especially important when third-party software such as CRM, DMS, or e-commerce systems is integrated. Only when data flows smoothly can the ERP system operate efficiently.
In a controlled pilot phase, selected user groups test the system under real conditions - often starting with one department or a limited functional scope. This phase reveals not only technical but also organizational weaknesses. Feedback from pilot users is invaluable for the final optimization round before the official launch.
Based on test results, configurations are adjusted, faulty processes revised, and user instructions added. Only when all parties are satisfied and no critical errors remain is the system approved for production use.
A structured testing and pilot phase is the final step before go-live - and often determines the success or failure of the entire ERP implementation.
Before the new ERP system goes live, the final data migration takes place. All updated master data, transactional data, and open items are transferred from the legacy system. Immediately afterward, comprehensive tests are performed to verify system integrity, completeness, and functionality. The go-live proceeds only once all approvals are in place.
A professional go-live requires an active support structure. This includes a central hotline or ticket system for initial inquiries, superusers in departments, and a clearly defined escalation plan in case of serious issues. Fast response times and clear responsibilities help ensure operational stability.
Timely and comprehensive communication is a key success factor. All employees must know when and how the new system will go live, what changes it will bring for them, and who to contact for assistance. An internal communication package with FAQs, short video guides, and checklists is often recommended.
After go-live, errors and questions are to be expected. It is crucial to document and process them systematically. A central error and inquiry log, combined with a clear prioritization system, ensures transparency and quick action.
A well-planned go-live is not a matter of chance - it is the result of solid preparation. Those who manage this phase proactively build employee confidence and establish a stable foundation for continued operation.
After go-live comes optimization. A modern ERP system is not a static tool but a dynamic platform that should be continuously developed - both technically and organizationally.
Right after the launch, it is advisable to collect feedback in a structured way. This can be done through targeted surveys, personal feedback sessions, or anonymous responses. The experiences of users are a valuable indicator of usability, process logic, and potential weaknesses.
In addition, monitoring of relevant KPIs (Key Performance Indicators) should be established. Do posting rates, processing times, and order cycles align with the expected goals? If not, a root cause analysis and adjustments are necessary - either in the system or within the process.
In many cases, live operation reveals that employees are still uncertain when using certain functions. Targeted refresher sessions or follow-up trainings - either individual or cross-departmental - can be very effective here. New employees should regularly be introduced to the ERP system through structured onboarding trainings.
Depending on the project scope, the ERP system is often implemented in a basic version - additional modules and features can be added during ongoing operations, for example for workforce planning, production control, or business intelligence. Professional release management ensures that updates, new features, and legal adjustments are implemented in a controlled and planned manner.
The implementation of an ERP system is more than an IT project - it is a strategic lever for digital transformation. Those who approach planning, implementation, and optimization holistically strengthen efficiency, transparency, and competitiveness. Continuous improvement is not an optional add-on, but a central component of long-term business success.
Email Sebastian Küstermann: skuestermann@kkvision.de
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