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Wednesday, 26 March 2025 09:04

Transitioning to a new ERP system is like open heart surgery for business

By ECI Software Solutions
Josh McHugh-Cullen, regional account executive, ECI Software Solutions Josh McHugh-Cullen, regional account executive, ECI Software Solutions

GUEST OPINION: Transitioning from one enterprise resource planning (ERP) system to another might appear to be a simple software upgrade. However, changing ERP systems involves profound, structural adjustments affecting every facet of an organisation for businesses where operational efficiency and real-time data management are critical.

Josh McHugh-Cullen, regional account executive, ECI Software Solutions, said, “An ERP system is the central nervous system of modern businesses, linking finance, operations, human resources (HR), customer management, and inventory control into one platform. Transitioning from one ERP system to another involves re-engineering workflows and processes that have been the company’s lifeblood. This requires careful planning, a deep understanding of existing systems, and meticulous execution to keep the business’s vital functions operating without interruption. It may not be the same as life and death; however, using open-heart surgery as an analogy for ERP migration reinforces that these projects are rare and involved.” 

Before a surgeon can operate, there’s an exhaustive diagnostics, planning, and risk assessment process. Similarly, businesses must analyse their current ERP system to determine what works, what doesn’t, and what new functionalities are needed. This phase involves engaging stakeholders across the business, from top management and IT experts to frontline employees, to map out the critical processes and data flows the ERP system supports. Misalignment can lead to inefficiencies, customer dissatisfaction, or revenue loss. 

The next stage after the diagnosis is designing the new system architecture. Like constructing a new cardiovascular pathway during heart surgery, businesses must integrate the new ERP system with existing applications such as customer relationship management (CRM) tools, inventory control systems, and emerging technologies like artificial intelligence (AI) and application programming interfaces (APIs). Modern ERP systems should be flexible and scalable to adapt to the company’s changing needs.  

Josh McHugh-Cullen said, “The incorporation of APIs is particularly crucial, because they let different systems across the organisation communicate and share data. This creates a consolidated ecosystem rather than silos. For example, office technology and supply companies deal with multiple product categories and clients across different industries. It’s easy for one side of the business to have no idea what the other side is doing, doubling up on data and resources while missing out on key insights and upsell and cross-sell opportunities.” 

The implementation phase continues the comparison to heart surgery. Just as the surgeon operates precisely, the transition team must execute the ERP implementation with perfect attention to detail. Each conversion phase from migrating historical data to configuring new business processes carries the risk of downtime, data loss, or disruptions. The stakes are high because any error can compromise the organisation’s integrity.  

Josh McHugh-Cullen said, “Businesses should engage experienced project managers and ERP consultants with a track record in these complexities. Their expertise is invaluable in supporting a smooth transition, mitigating risks, and addressing unforeseen challenges. Once the new ERP system is in place, switching systems and expecting everything to run perfectly is also insufficient. The success of an ERP migration depends on the organisation’s ability to adapt to new processes and workflows. Training programs, clear communication channels, and ongoing support are essential to help employees adjust. It is crucial that the company’s leadership emphasise the importance of this change, creating a culture receptive to innovation while acknowledging temporary difficulties during the transition.” 

A phased implementation approach is best practice for a successful ERP migration. Companies should break down the project into manageable segments, making sure critical functions are operational before moving on. This strategy reduces risk and lets the organisation learn and adjust as the new system integrates. Having contingency plans is also vital. Businesses should establish monitoring systems to quickly identify and resolve post-implementation issues in the same way a cardiac patient is monitored for complications after surgery. 

Josh McHugh-Cullen said, “Many organisations undergo one or two ERP transitions in their lifespan, so getting it right the first time is essential. Committing to a new ERP system is a long-term investment, and the chosen platform must meet current needs and support future growth.” 

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