What is an ERP project?
Unclear requirements, faulty data and overloaded project teams can significantly hinder the implementation of a new enterprise software. A structured ERP project creates clear goals, binding responsibilities and a controlled path from the initial need to stable operation. But what exactly is an ERP project, which phases does it include, and what should companies pay particular attention to?
1. What is an ERP project? Definition and classification
An ERP project is a time- and organization-planned undertaking for selecting, implementing, replacement, expansion, or fundamental modernization of an Enterprise Resource Planning (ERP) system. An ERP system connects central business areas such as procurement, sales, materials management, warehousing, production, service, finance and controlling in a shared software and data environment.
The ERP project covers not only the technical installation of the software. It also concerns business processes, data structures, roles, responsibilities, interfaces and the way employees work. Therefore, an ERP project is primarily a business and organizational project with a strong IT component.
Depending on the starting situation, an ERP project can take on different forms:
- ✅ first-time ERP implementation
- ✅ replacement of an existing ERP or legacy system
- ✅ migration to a new ERP generation
- ✅ switch from on-premise installation to cloud ERP
- ✅ integration of additional locations or subsidiaries
- ✅ introduction of further ERP modules
- ✅ harmonization of different systems and processes
- ✅ fundamental redesign of existing business processes
Short definition: An ERP project is a structured organizational undertaking in which an ERP solution is selected, implemented or modernized to plan and manage processes, data and resources in an integrated system.
The term ERP project should not be confused with ERP project management. An ERP project refers to the entire undertaking around selection, implementation and operation of an ERP system. ERP project management, on the other hand, can also denote a function within an ERP software that manages customer projects, timelines, resources, services and project costs.
2. Why do companies start an ERP project?
An ERP project usually does not begin solely with the desire for new software. There is often a concrete organizational, technical or strategic need for action. The existing system no longer adequately supports the company's development, or central processes are increasingly distributed across more and more individual applications.
| Trigger | Typical initial situation |
|---|---|
| Trigger Outdated system landscape | Typical initial situation The existing system is no longer developed further, is hard to maintain, or supports new requirements only to a limited extent. |
| Trigger Media breaks | Typical initial situation Data are transferred between ERP, spreadsheets, emails and specialized applications multiple times. |
| Trigger Company growth | Typical initial situation New sites, subsidiaries, sales channels or larger data volumes cannot be efficiently managed with the current solution. |
| Trigger Lack of transparency | Typical initial situation Current information on orders, inventories, costs, utilization or delivery dates is not centrally available. |
| Trigger Inconsistent processes | Typical initial situation Departments or sites work with different procedures, data models and systems. |
| Trigger High manual effort | Typical initial situation Recurring tasks are performed manually and information is maintained in multiple places. |
| Trigger New business requirements | Typical initial situation The company needs additional functions, integrations, digital services or more flexible operating models. |
| Trigger Company acquisitions | Typical initial situation Different system landscapes and data structures must be merged. |
However, a technical trigger alone is not sufficient to steer an ERP project effectively. Companies should derive concrete business objectives from the trigger. Replacing an old system is, for example, a trigger. A more controllable order process, more reliable stock information or a unified data basis are, conversely, possible project goals.
3. What goals does an ERP project pursue?
The project goals provide the benchmark for requirements, priorities and later success checks. General statements like “We want to become more digital” or “We want to work more efficiently” are too imprecise for this. A good goal describes the state that should be achieved after the ERP project and how the achievement of the goal can be verified.
Typical goals of an ERP project are:
- ✅ create a unified data basis for multiple business areas
- ✅ reduce media breaks and duplicate data entry
- ✅ standardize and harmonize business processes
- ✅ improve transparency of inventories, orders, costs and delivery dates
- ✅ support planning and disposition more reliably
- ✅ reduce manual routine activities
- ✅ integrate different sites or subsidiaries
- ✅ make responsibilities and approval processes clearer
- ✅ provide robust analytics for management and controlling
- ✅ simplify the system landscape
- ✅ support future growth organizationally and technically
Goals should be prioritized. Not every desired improvement needs to be part of the initial production start. A clear separation between mandatory requirements, important requirements and later expansion stages helps keep the project scope manageable.
4. Who belongs to the ERP project team?
An ERP project cannot be conducted exclusively by the IT department. The specialist departments know the daily processes, special cases and domain dependencies. IT, in turn, evaluates among other things architecture, security, permissions, interfaces and technical operation issues. Both perspectives must be brought together.
| Role | Typical responsibility |
|---|---|
| Role Executive management or steering committee | Typical responsibility Sets goals and framework conditions, prioritizes and decides in fundamental conflicts. |
| Role Project management | Typical responsibility Coordinates schedules, tasks, decisions, risks, communication and project progress. |
| Role Key user | Typical responsibility Represents the business areas, describes requirements, assesses target processes, tests the system and supports training. |
| Role Process owners | Typical responsibility Decide on the future design of certain business processes. |
| Role IT responsible | Typical responsibility Manages technical infrastructure, security, user administration, interfaces and operational issues. |
| Role Data owners | Typical responsibility Manage cleansing, mapping, migration and data quality control. |
| Role ERP vendor or implementation partner | Typical responsibility Advises on configuration and implementation and brings system and implementation expertise. |
| Role Test owners | Typical responsibility Plan test cases, document results and coordinate defect fixes. |
⚠️ A common bottleneck is the unavailability of key users. Especially experienced specialists are often heavily involved in day-to-day business. If they can only handle requirements, tests and decisions on the side, delays and quality problems arise. Therefore, project work should be scheduled as a binding commitment and organizationally secured.
5. What phases does an ERP project have?
The exact structure depends on the company, project scope, ERP system and chosen approach. In terms of content, however, ERP projects can be divided into typical phases.
Phase 1: Project initialization and goal definition
At the outset, the starting situation, need for action and strategic goals are clarified. The company determines the project scope, appoints responsible persons and checks which internal capacities are available.
Key results of this phase include:
- Project charter
- Target vision
- Definition of project scope
- Project organization
- Initial risk and resource assessment
- Communication and decision structure
Phase 2: As-is analysis and process capture
In the as-is analysis, existing processes, systems, data flows and weaknesses are documented. It is not about transferring every historical peculiarity unchanged into the new system. The analysis should show which workflows work, where data breaks occur and which processes should fundamentally be revised.
Phase 3: Target concept and requirements
Based on the as-is analysis, the future functioning of processes is defined. This yields functional and non-functional requirements.
Functional requirements describe, for example:
- Order processing
- Procurement and disposition
- Warehouse management
- Production planning and manufacturing control
- Finance and Controlling
- Service processes
- Analytics and reports
Non-functional requirements concern, among other things, usability, permissions, data protection, security, scalability, availability and operating model.
Phase 4: ERP selection
In this phase, suitable ERP solutions and providers are evaluated based on the requirements defined earlier. It is important not only to compare individual feature lists. What matters is how well the system maps the company’s core processes in an integrated way.
Practical workshops should therefore demonstrate typical business scenarios, for example from customer order through material planning and production to delivery and invoicing.
Phase 5: Detailed project planning and concept
After the selection, the project plan, responsibilities, work packages, milestones and acceptance criteria are clarified. Companies and implementation partners agree on how the requirements will be implemented.
Phase 6: Configuration and required adaptations
The ERP system is configured according to the target concept. This includes organizational structures, user roles, permissions, business rules, workflows, forms and reports.
Generally, it should first be checked whether a process can be sensibly mapped with the ERP standard. Individual adaptations may be necessary for business-critical special cases. They should be justifiably reasoned, documented and evaluated for their impact on maintenance and further development.
Phase 7: Data migration and integration
Data are prepared, mapped, cleansed and transferred from existing systems to the new ERP system. At the same time, necessary interfaces are implemented and tested.
Phase 8: Tests and acceptance
In test environments, it is checked whether functions, data, permissions, interfaces and complete process chains work correctly. Deviations found are documented, prioritized and retested.
Phase 9: Training and go-live preparation
User staff are prepared for their future tasks. In parallel, cutover plan, support structure, communication plan and contingency arrangements for the productive deployment are created.
Phase 10: Go-live and stabilization
The system goes live. In the subsequent stabilization phase, questions, errors and process gaps are systematically addressed. An ERP project is therefore not automatically completed on the first productive day.
Phase 11: Optimization and further development
After a stable transition to regular operation, experiences are evaluated. Further features, sites, automations or process improvements can be added in planned upgrade stages.
6. Which documents are needed in an ERP project?
Documents create accountability and prevent requirements, decisions or responsibilities from being interpreted differently.
- Project charter: describes reason, goals, scope and responsibilities.
- Process documentation: records as-is and to-be processes traceably.
- Requirements specification: describes from the company’s perspective which requirements the new solution should fulfill.
- Functional specification or implementation concept: describes how the defined requirements will be implemented.
- Project plan: contains phases, work packages, milestones, dependencies and responsibilities.
- Data migration concept: defines data sources, mappings, cleansing and verifications.
- Interface concept: describes involved systems, data flows, responsibilities and error handling.
- Test concept: specifies test types, test cases, test data and acceptance criteria.
- Training concept: assigns roles, learning content, materials and training dates.
- Cutover plan: describes the controlled transition from the current to the new system.
- Decision protocol: documents important decisions and their justification.
⚠️ Documentation must not become an end in itself. It should be detailed enough that decisions, requirements and verification results can be clearly traced.
7. Which project methods are suitable for ERP projects?
ERP projects can be organized traditionally, agilely, or with a hybrid approach. No method is automatically suitable for every company.
| Approach | Characteristics | Suitable use cases |
|---|---|---|
| Approach Traditional approach | Characteristics The project phases are planned and completed largely sequentially. | Suitable use cases Suitable when requirements are stable, acceptance points are clear, and work packages are highly interdependent. |
| Approach Agile approach | Characteristics Functions and processes are developed, tested and improved in short iterations. | Suitable use cases Suitable for areas where requirements can be clarified step by step. |
| Approach Hybrid approach | Characteristics Higher-level milestones and framework conditions are planned traditionally, while individual implementation packages are processed iteratively. | Suitable use cases Suitable for many ERP projects, as fixed decision and acceptance points are connected with regular feedback loops. |
Regardless of the method, responsibilities, decision paths, quality criteria and project scope must be clear. Agile working methods do not replace goal definition or controlled data migration or binding acceptance criteria.
8. What role do data migration and data quality play?
A new ERP system can only deliver stable results with reliable data. Therefore, data migration is not merely a technical transfer. The company must decide, from a business perspective, which data are needed, how they are mapped and who verifies their quality.
Typical data areas to be checked include:
- Customer and supplier master data
- Item and material master data
- Bills of materials and work plans
- Prices, terms and units of measure
- Storage locations and stock
- Accounts and cost centers
- Open orders and orders
- Users, roles and permissions
A controlled data migration typically includes:
- Identify data sources
- Define data scope
- Define field mappings
- Clean duplicates and erroneous data
- Perform test migration
- Review results with business experts
- Incorporate corrections
- Prepare final migration for go-live
❌ Unverified transfer of all historical data
❌ Data cleansing only immediately before go-live
❌ Lack of business ownership for master data
❌ IT alone reviewing data records
9. How are interfaces and integrations planned?
A ERP system is often part of a larger application landscape. Depending on the company, for example CRM, document management, e-commerce, business intelligence, CAD, PLM, MES, logistics solutions or external platforms may be connected.
For every relevant ERP integration, it should be clarified:
- Which system is leading for certain data?
- Which data are transferred?
- In which direction does the transfer occur?
- When or what triggers it?
- How are errors detected and handled?
- Who is functionally and technically responsible?
- What security and permission requirements apply?
- How is the interface tested and monitored?
Interfaces should already be considered in the requirements and planning phase. If they are considered too late, important process dependencies may only become visible during testing or go-live.
Table of Contents
- What is an ERP project? Definition and classification
- Why do companies start an ERP project?
- What goals does an ERP project pursue?
- Who belongs to the ERP project team?
- What phases does an ERP project have?
- Which documents are needed in an ERP project?
- Which project methods are suitable for ERP projects?
- What role do data migration and data quality play?
- How are interface integrations planned?
- How do testing and quality assurance work?
- Why are training and change management important?
- What happens at go-live
- What risks exist in ERP projects?
- How can the success of an ERP project be measured?
- ERP projects in SMEs and in manufacturing
- Abas ERP as a case study
- Checklist for a successful ERP project
- FAQ: Frequently Asked Questions about ERP projects
10. How do tests and quality assurance work?
Tests should not only demonstrate that individual input masks work. The decisive factor is whether complete business processes can be executed with realistic data, roles and exceptions.
Important types of tests are:
- Function test: examination of individual functions and settings
- Integration test: testing the interaction of several systems or modules
- Process test: testing of complete business processes
- Migration test: testing of migrated data for completeness and correctness
- Authorization test: testing of roles and access options
- User acceptance test: professional validation by key users
- Regression test: check whether changes affect already functioning areas
Test cases should document starting situation, steps, expected result and actual result. Critical errors must be traceably corrected before go-live and re-tested.
11. Why are training and change management important?
With a new ERP system, processes, responsibilities, input rules and information flows often change. Even technically correct processes are not used reliably if employees do not understand their new role or have not been sufficiently prepared.
Therefore, an effective change management addresses early:
- Why is the ERP project being carried out?
- What problems are to be solved?
- Which processes will change?
- What benefits arise for the individual departments?
- Who decides on open questions?
- Where do employees receive support?
Training should be role- and process-related. Employees in purchasing need different learning content than employees in production, warehousing, sales or finance. Practical exercises with realistic business cases are usually more helpful than a purely general functional overview.
12. What happens at go-live?
Go-live denotes the transition to productive operation. Depending on the project, the switch may occur simultaneously for all affected areas or gradually by sites, subsidiaries, processes or modules.
Before going live, at least the following points should be clarified:
- ✅ Critical processes have been successfully tested
- ✅ Necessary data have been checked
- ✅ Users and permissions are set up
- ✅ Interfaces are functional
- ✅ Users have been trained
- ✅ Open errors have been evaluated and prioritized
- ✅ Support and escalation paths are known
- ✅ Responsibilities for the productive start are defined
- ✅ Backup and emergency measures are prepared
After go-live, stabilization follows. In this phase, support requests are bundled, errors prioritized and process deviations analyzed. Only when the essential processes function stably can the project be handed over to regular operation in a controlled manner.
13. What risks exist in ERP projects?
| Risk | Possible countermeasure |
|---|---|
| Risk Unclear goals | Possible countermeasure Formulate project goals concretely, prioritize them, and connect with acceptance criteria. |
| Risk Uncontrolled expansion of scope | Possible countermeasure Document, assess and consciously approve or postpone change requests. |
| Risk Missing resources | Possible countermeasure Plan project times reliably and organize substitutes for day-to-day business. |
| Risk Too little involvement of the business units | Possible countermeasure Involve key users already in process analysis and requirements definition. |
| Risk Poor data quality | Possible countermeasure Start data cleansing early and designate domain data owners. |
| Risk Too many individual adaptations | Possible countermeasure Review standard processes and implement special solutions only when there is a justifiable business value. |
| Risk Insufficient tests | Possible countermeasure Systematically test real process chains, exceptions, permissions and interfaces. |
| Risk Missing acceptance | Possible countermeasure Explain changes transparently and involve employees early. |
| Risk Unclear decisions | Possible countermeasure Define decision-making authority and escalation paths in the project charter. |
| Risk Go-live despite critical errors | Possible countermeasure Define binding release criteria and a robust go-live decision. |
14. How can the success of an ERP project be measured?
An ERP project is not successful simply because the new system has started technically. What matters is whether the defined business and process goals are achieved.
Possible success criteria include:
- Adherence to the agreed project scope
- Fulfillment of the defined acceptance criteria
- Stability of the business-critical processes
- Quality and completeness of migrated data
- Usage of the system by the intended roles
- Reduction of manual steps
- Reduction of data/media breaks
- Higher availability of current corporate information
- Improved traceability of processes and responsibilities
- Implementation of the prioritized business objectives
The success control should continue after stabilization. Some improvements can only be judged once sufficient data from productive operation are available.
15. ERP projects in SMEs and in manufacturing
Medium-sized enterprises need professional structures for ERP projects but often have limited personnel capacity. Key people take on responsibility in both day-to-day business and in the project. Realistic resource planning is therefore especially important.
In production and manufacturing companies there are additional dependencies. Sales, purchasing, planning, warehouse, design, production, service and controlling are tightly interconnected. Changes to bills of materials, scheduling, material requirements or orders can affect several departments.
Special attention should therefore be paid to:
- end-to-end processes from quote to delivery
- Material requirements planning and Disposition
- BOMs, work plans and manufacturing orders
- Planning of capacities and schedules
- Feedback from production and warehouse
- Batch, serial or other traceability requirements
- Calculation and post-calculation
- Integration of adjacent production and design systems
For a manageable ERP project, it should be clearly decided which processes are essential for the first go-live and which functions can follow in later expansion stages.
16. Abas ERP as a practical example
Abas ERP is aimed at medium-sized manufacturing companies and supports core business areas such as purchasing, sales, production, warehouse, service, finance and controlling. The ERP solution is available as a cloud or on-premise model. This means Abas can be relevant for companies that want to map their production and business processes in an integrated ERP environment.
For an ERP project with Abas, a structured project organization, transparent responsibilities and early development of user competence are important. Companies should define their goals, processes, data and integration requirements before implementing. Then it can be assessed which requirements can be mapped with the ERP standard and where a specific configuration is required.
Abas ERP is particularly relevant for ERP projects in SMEs and in manufacturing because in these companies commercial and production-related processes are closely intertwined. Purchasing, materials management, production, warehousing, sales and finance must work together on a consistent data basis.
17. Checklist for a successful ERP project
- ✅ Is the reason for the ERP project clearly described?
- ✅ Are the business and strategic goals defined?
- ✅ Is the project scope clearly delimited?
- ✅ Are management, project leadership and key users named?
- ✅ Do the project participants have enough time?
- ✅ Are the most important as-is processes documented?
- ✅ Have suitable to-be processes been developed?
- ✅ Are requirements prioritized?
- ✅ Has a distinction been made between standard requirements and justified special features?
- ✅ Are data sources and data owners known?
- ✅ Has data cleansing been started early?
- ✅ Are necessary interfaces fully captured?
- ✅ Is there a realistic project plan with milestones?
- ✅ Are decision-making and escalation paths defined?
- ✅ Are documented test cases and acceptance criteria available?
- ✅ Are role-based trainings prepared?
- ✅ Is there a detailed Go-live plan?
- ✅ Are support and stabilization after productive start organized?
- ✅ Have later expansions been documented?
- ✅ Is it defined how project success will be measured?
Abas ERP Product Brochure
Would you like to see what the Abas ERP software looks like and discover the features it offers?
Our product brochure provides a detailed overview of all ERP functionalities. From materials management and production planning to project management, every key area is covered and explained in depth.
What is an ERP project?
An ERP project is a structured undertaking for the selection, implementation, replacement, expansion, or modernization of an ERP system. It encompasses not only the software but also processes, data, responsibilities, interfaces, training, testing, and organizational changes.
What is the difference between an ERP project and an ERP implementation?
The ERP project encompasses the entire undertaking from goal definition and requirements analysis through system selection and implementation to stabilization and success monitoring. The ERP implementation more precisely refers to the concrete setup, configuration, data migration, integration, testing, and go-live of the selected solution.
Is an ERP project an IT project?
An ERP project has an important technical component, but it is not a purely IT project. Since business processes, data, roles and responsibilities are affected across the entire company, it is also an organizational and change-management project.
What is the difference between a requirements specification and a functional specification?
The requirements specification describes, from the company's perspective, which requirements an ERP solution should fulfill. The functional specification or implementation concept describes how the provider or the project team will implement these requirements in the selected system.
Which people should be involved in an ERP project?
The key stakeholders include management or the steering committee, project management, key users from the functional areas, process owners, IT, data owners, test leads, and the ERP or implementation partner.
Is an ERP project worthwhile for small businesses as well?
An ERP project can also be worthwhile for smaller companies when several business units need to be coordinated, data silos arise, or the current system no longer adequately supports the required processes. The scope of the project and the chosen solution must fit the company size, process complexity, and the available organizational resources.
How do you choose the right ERP solution for an ERP project?
The selection should be based on documented and prioritized requirements. In addition to functions, the process fit, industry suitability, integration capability, operating model, usability, further development, support, and collaboration with the implementation partner should be evaluated. Hands-on process workshops usually yield more insights than a simple comparison of feature lists.
What are the most common risks of an ERP project?
The most common risks include unclear objectives, lack of resources, incomplete requirements, low involvement of the business units, poor data quality, underestimated interfaces, too many customizations, insufficient testing, and lack of change management.
When is an ERP project completed?
An ERP project is not automatically complete at go-live. After go-live, a stabilization phase follows. The project closure should only take place once the agreed processes are functioning reliably, critical defects have been addressed, responsibilities have been handed over to operations, and the defined acceptance criteria have been met.
What comes after the ERP project?
After project completion, regular operation begins. This includes support, data maintenance, user management, process monitoring, updates, and continuous optimization. Additional modules, locations, or features can be introduced in separate expansion stages.