Software implementations cover a variety of activities performed by the vendor you’ve selected and its team of experts, internal employees and potential users, your management team, and occasionally any outside consulting or IT representatives. When you make the decision to implement a piece of software, you’re also agreeing to follow the implementation processes laid out by that vendor. The specific requirements of your team during the implementation process and that of the vendor are identified during initial implementation meetings to make sure everyone is on the same page, and to ensure that adequate resources have been provided to complete the implementation on time.
With SaaS-based enterprise software, implementations do not happen overnight, but rather, over the course of several weeks and months depending on the vendor’s schedule and how complicated the implementation is.
What is SaaS
As previously discussed, SaaS applications (software-as-a-service) apply to software that is licensed on a subscription model where the server for the software is hosted on the cloud owned by software provider (or servers leased by the software provider) and not on the customer’s own physical equipment.
When searching for SaaS ERP, keep in mind the work involved as part of the implementation process (detailed below) and make sure you build this into your time frame. If there is a specific time of year that works best for your company to switch systems remember to start discussions with potential software vendors well in advance.
In this article, we will specifically be referring to a SaaS ERP (Enterprise Resource Planning) Implementation. Too long to read right now? Download the PDF for convenient reading later!
Initial SaaS Environment Set-Up
When a business purchases a subscription for a SaaS product, an initial cloud-based environment needs to be set up for the new company. For each Blue Link ERP customer, we create a dedicated server environment by setting up and provisioning a new server and installing Windows. This ensures that every customer has their own secure server environment with Blue Link’s ERP software, along with related technologies like Microsoft SQL, Crystal Reports, and more.
Each server environment is customized to meet the specific needs of the customer, including storage space, the number of servers, RAM, CPU, and web services. We also handle the setup of user accounts, assign permissions, create secure login details, and provide access to the necessary applications and services.
As a Microsoft Partner, Blue Link ERP provides additional Microsoft resources (such as Office 365 licenses) at a discounted rate to our customers, which is also included as part of the set-up for a customer’s server environment.
Software set-up is often an overlooked aspect of the implementation process, especially when moving from introductory software systems. When implementing a system such as QuickBooks, it is often left up to the user to set up the necessary parameters and options themselves. When working with a more advanced, all-in-one solution, this level of detail is taken care of by the vendor. As no two businesses are exactly alike, configuration refers to setting up the software to work for your company’s specific needs. This adds flexibility for different types of users, operations, and processes. Common examples include:
- Accounts payable net limits
- “Flags” for dealing with specific actions such as customers over their credit limits
- Product categories (drop-down menus)
- User permissions and security
- Bank accounts
- Sales reps and commissions
- Available order statuses
- System defaults – default units of measure, quote status, inventory class, etc.
- Maximum field lengths
Who Is Responsible for a Successful ERP Implementation?
While studies suggest up to 75% of ERP implementations fail to meet objectives, our experience at Blue Link tells a different story. But the question remains—who is ultimately responsible for success? A LinkedIn ERP Community poll found:
- 17% say the Vendor – Vendors must set realistic expectations and guide customers based on their engagement level.
- 39% say the Customer – Customers control the budget and must ensure the software meets their needs.
- 44% say Both – Success requires teamwork, with clear roles and responsibilities.
Maximizing efficiency during a SaaS ERP implementation requires a strategic approach to streamline processes and reduce costs. Businesses transitioning from manual methods or introductory software should start by evaluating current processes and identifying key requirements to ensure the selected SaaS solution aligns with their operational goals. To maintain focus during implementation, create a wish list for non-critical feature requests instead of customizing the system immediately, assigning an employee to manage it while the vendor prioritizes training and setup. This structured approach ensures a smoother transition and maximizes the benefits of the new software.
Our Take: ERP implementation is a shared responsibility. Vendors must understand customer needs, provide the right software, and offer guidance. Customers must communicate their processes, allocate resources, and follow implementation best practices. Collaboration is key to a smooth and effective rollout.
Before ERP Implementation: Choosing the Right Vendor
Implementing an ERP system is no walk in the park, and there's really no sugarcoating this fact.
One of the key factors separating a successful ERP software implementation from an unsuccessful one is the level of information exchanged between the vendor and business before the implementation.
You will encounter software vendors who will make this transition as easy as possible, and others who will leave you dreaming about ‘simpler times’ with your old system. To avoid the latter, there are essential questions to ask software vendors before your ERP implementation. These questions will help determine if the software is the right fit for your company, whether the vendor aligns with your corporate culture, and mitigates the risk of an unsuccessful implementation.
The following questions can help you find an ideal vendor best fit for your business needs:
- Does this software meet the specific needs of my business?
All software “works” and is “good” on some sort of level but what you need, is software that works and is good for your specific business. It is important to note this distinction to ensure that the system is not only functional but also aligns with the needs and culture of your organization. For example, a pharmaceutical distribution company will have numerous government regulations to address. It is imperative to purchase a system that addresses these processes in its core product offering.
- Will our employees be fully trained on how to use the software?
As with any new system or process, there will be a learning curve and it’s important you and your vendor tests, tests, tests. Every employee varies in how easily they can adapt to new technology. Most vendors provide training documentation and videos, but these should be used in conjunction with hands-on training. No matter how user-friendly a system may be, hands-on vendor-conducted training is invaluable. You employees should be engaged and ready to learn – the hands on training is the best time to ask questions. You may have to pay extra for consulting hours if you leave questions until after the training is done.
- What activities are included in the implementation and how does it work?
This step is crucial as it outlines the timeline, training expectations, and the effort needed to get the system up and running.
Supplementary Questions to Ask Your Software Vendor
- Who should be involved with the implementation on your side
- Who will be the point of contact for the implementation on the vendor's side
- How much training will be provided?
- Can extra training be provided? Is there an additional cost?
After receiving a proposal from a prospective vendor, it is important to fully read it through and schedule a follow-up meeting to ask any additional questions that have come to mind.
- Does the vendor currently have customers in the same industry as mine?
Speak to references from the ERP vendor to hear first-hand how the software has worked for them, and what benefits it has been able to provide. Speaking with customers is the best way to get an honest answer regarding the software and will make it easier for you to compare different ERP vendors. You can also solicit tips on pitfalls and mistakes to avoid on your side of the implementation.
- What happens if the vendor goes out of business?
If your company is planning on investing large amounts of money and resources into ERP software, you want to be assured that it will be around and working far into the future. One option is something called a “source code escrow agreement".
This agreement dictates that if the software company does go out of business, they have agreed to make their source code available meaning it can then be supported by anyone (of course this only helps if the software is written in a widely used programming language). A more popular option is ensuring that you have access to your data. This means that even if the software vendor goes out of business, you still have the ability to extract your data and import it into a new system if need be.
- Has the vendor ever had any failed implementations?
As mentioned above, many ERP software implementations fail, and most industry experts believe that when an implementation fails, it is both the vendor's and the customer’s responsibility. The stats may seem depressing but are typically representative of large ERP implementations that are often much more complex and prone to failure.
However, small and medium-sized businesses should still prioritize the success of their implementations. An ERP vendor that is open and honest about failed implementations is more likely to have learned and grown from such failures to ensure that they don’t happen again.
- What does customer support look like during and after implementation?
With the implementation of new ERP software it is inevitable that your company will need support at some point or another – therefore it is extremely important to determine the specifics of how the vendor will deal with and charge for support.
After reviewing the eight questions outlined above, you can see that they are incredibly obvious yet essential. Often, people take shortcuts in their software search to reach the finish line quickly and assume that everything will work out because software vendors are “Techy”. Take your time with your search—this is a major decision that will affect your business for years to come. These questions are a great starting point and should help you examine all aspects of the implementation process to increase its success rate.
What does the Implementation entail?
In order to successfully implement SaaS products and enjoy the benefits of the investment long term, the process requires attention to detail, time and patience. Below are the 7 steps considered during a SaaS ERP Implementation.
Successful SaaS Implementation: Key Steps
Establish Ownership
To avoid shadow IT and unnecessary cloud spending, form a dedicated software implementation team. Having a team to oversee the implementation of SaaS products drives project success. For smaller companies, a team of two (an administrator and a training lead) may suffice, while larger companies may require a broader team, including a project manager, operations lead, and technical lead. A secondary team full of leads from each department can effectively address concerns directly from their respective teams. This structured approach ensures that all aspects of the implementation are managed effectively. Having the right, digital-savvy leaders in place is among the factors that contribute to a successful digital transformation initiative.
Collaboration is crucial for a successful SaaS implementation. Engage IT teams and end-users early on to gather insights, address concerns, and ensure a smooth transition. Involving these groups helps in identifying potential issues before they arise and ensures that the solution meets the practical needs of its users.
Developing an Implementation Plan
Outline milestones, responsibilities, and communication strategies. Large transformations require ongoing vendor discussions and strategic planning.
Define Key Metrics
Track implementation success using key metrics like timeline, budget, customization, and integration. Testing with a small group first helps identify process improvements before company-wide deployment.
User Acceptance Testing (UAT)
Engage end-users in testing before full deployment to ensure functionality and usability. This minimizes post-launch issues.
Training & Change Management
Provide role-specific training, involve superusers, and create a structured rollout plan. Ongoing training boosts efficiency, reduces errors, and fosters long-term adoption.
Vendor Support & Tech Stack Integration
Leverage vendor assistance for data migration, onboarding, and integrations. Integrate your new ERP with existing systems to automate processes and enhance data accuracy.
Data Migration
Effective data migration is crucial for ERP implementation, ensuring that your new system includes all necessary information such as customer details and sales history without manual entry. Blue Link ERP, for instance, offers full-service historical data transfers, minimizing disruption. From a technology perspective, migrating this information is feasible but balancing speed with accuracy can be challenging.
As you transition to a new system, it's crucial to carefully assess the types of data you currently possess and identify what will be essential for the new system. Take into account the various reports and on-screen inquiries you rely on, as well as both current and historical data. It's also a good time to evaluate the quality of your existing data - are there numerous duplicated customer records that need to be streamlined? Are you content with your current product codes, or is there room for improvement? And don't forget about your chart of accounts - is it meeting your needs efficiently? If there are any changes you wish to make, now is the perfect opportunity to do so.
Data migration is a multi-stage activity involving preliminary migrations for sanity checks and training purposes, followed by the final migration at go-live. The process consists of three main steps:
- Extracting Data: Retrieving data from existing systems or spreadsheets.
- Cleaning and Structuring Data: Also known as "data massaging," this step involves eliminating errors and ensuring consistency.
- Importing Data: Mapping and moving the cleaned data into the new ERP system according to labels, titles, and structures.
This process often requires multiple iterations to ensure accuracy and up-to-date data before Go-Live. One of the most time-consuming aspects of ERP software implementation is the data migration process, which significantly impacts the implementation timeline and total costs. Properly managed data migration ensures a smoother transition, minimizes disruptions, and enhances the effectiveness of the new ERP system.
Software Set-Up & Configuration
Your new ERP system will be much more configurable than you’re accustomed to. The same system can behave quite differently (and even look and feel different) depending on how it’s set up. Getting the initial setup right is crucial to a smooth implementation. While you should be guided by the vendor as mentioned above, you need to actively participate in this process to ensure that what you want to get out of the system is taken into account during setup. While many configuration options can be changed/reversed even after you are live on the ERP system, by that time your hands will be full, and you may never get to making those changes. Do it right the first time.
By following these steps, businesses can maximize SaaS benefits while minimizing disruptions.
Implementation Case Study
ECS Coffee, a Canadian coffee and espresso gear retailer, aimed to improve inventory management, streamline operations across multiple sales channels, provide accurate customer information, and enhance service quality. They faced challenges with fragmented systems for accounting, retail POS, and online sales, leading to incomplete customer histories, inefficient inventory control, and manual processes that hindered productivity.
Blue Link ERP addressed these objectives by implementing an integrated ERP system connecting all business areas, including office, online, and showroom sales. This e-commerce integration provided robust inventory management, automated reporting, real-time updates, and reduced manual errors. As a result, ECS Coffee enhanced operational efficiency, improved customer service, and supported its growth effectively by making informed decisions quickly and managing purchasing needs proactively.
Understanding ERP Implementation Costs
There are various costs involved in a SaaS ERP software implementation. Key Implementation costs include Training, Data Migration, Customization and Configuration and & Installation. Training costs can vary based on the number of users and their familiarity with the software. Data migration involves transferring existing data into the new system, often requiring cleanup for accuracy. Customization may arise during the process, while configuration involves setting up a tailored server environment.
Implementation costs vary widely, so Blue Link provides flexible estimates based on business size and complexity. Investing in a proper implementation ensures employees are well-trained, data is clean, and automation is optimized—leading to long-term efficiency and success.
SaaS Implementation Pitfalls/challenges
To fully leverage SaaS, businesses must eliminate redundant processes, empower employees with the right tools, and commit to completing implementation tasks on schedule.
- Picking the Wrong Software Vendor
When a company picks the wrong software vendor to begin with, the implementation process can be an uphill battle. If a vendor sets certain expectations for what the implementation process looks like but does not follow through with those expectations, then that can be problematic. Perhaps they are not training you properly or showing you how you can get the most value out of the system. Or maybe they’re not providing you with the custom work that you need for your unique business processes.
Your vendor may have also misled you into believing that their system is compatible with your company’s processes when it isn’t. They may have advertised themselves as a “one size fits all” solution when there is no such thing. It’s usually during the implementation process when companies begin to see that the system they purchased isn’t a good fit for their business.
Software Buying Guide - Downloadable Guide
- Data Migration Challenges
Data migrations can be a major hurdle in the implementation process for a variety of reasons. For one, finding all your data can be difficult if it’s scattered throughout multiple sources or handwritten and stored physically. Ensure you have access to all your data ahead of implementation to avoid inaccurate or duplicate data when you Go-Live.
- Change (Mis-)Management
When deciding to switch to a new ERP software system, you cannot neglect how you manage change amongst members of your organization. You likely already got buy-in from other leaders within the company before signing the proposal, but it’s important to have a plan in place to address the change with employees.
- Misaligned Expectations
Your software vendor must set realistic expectations about what they can complete in a set amount of time. For instance, you might expect them to frequently be on-site with you during the implementation process when they don’t have the time and resources to be able to do that. Misaligned expectations have the potential to lead to resentment and can strain the relationship with your vendor.
To set the right expectations, it’s important to work with your vendor to come up with a comprehensive mutual plan so that the project stays on course. Having a plan ensures that goals and deadlines are being met and that the implementation is completed in a reasonable amount of time.
- Not Aligning Processes with Technology
One of the main purposes of ERP implementations is to ensure that your organization knows how to get the most out of your system. You may be able to utilize certain functionality with your current practices, but you’re likely going to get more out of your system by adopting newer practices. For example, your new software might have order-picking functionality that allows you to track when orders are being picked that you didn’t have before. However, if you don’t improve your order-picking strategy then this functionality will be useless. Your vendor should help you realize the potential of your software and ensure your business processes are aligned. This means picking a vendor that has in-house experts who care and will go out of their way to make their clients’ lives easier.
- Going Over Budget
ERP implementations can go over budget because of a lot of hidden costs that vendors fail to mention. For example, some vendors might promise a “guaranteed implementation cost” only for the final cost to end up being nowhere near the price that was initially discussed. Software implementation services are typically billed on an hourly basis, and many variables make it difficult to predict the final cost. Keep communication open with your vendor to avoid unwanted price hikes.
- Business Disruption
A major challenge in ERP software implementations is how it has the potential to disrupt your business processes. Roughly two-thirds of businesses experience operational disruption when implementing ERP software. There may be some downtime, particularly if you’re taking a big-bang approach to data migration and doing it all at once. It’s also going to take time for employees to become fully trained in using the software, which might result in disruptions. Employees might have less time to complete their normal work since they are spending time learning the new system.
- Rushing the Process
ERP software is a major investment in one’s business success. It deserves as much care and attention as any other critical business process. You may spend months evaluating software requirements, researching vendors, and eventually choosing appropriate software, only to end up having the software implemented improperly. A good implementation team should always be able to make the software work for your business but just how perfectly it fits your needs depends on how much time you spend on the process. Ensure full buy-in and make the implementation a top priority so that you can benefit fully from your new software system.
Emotional Intelligence in Leadership: A Key to Successful Software Implementation
Great leaders exhibit high emotional intelligence (EQ), which some researchers, like David McClelland, argue is more critical than analytical skills. Strong leadership is crucial for major business projects, such as implementing wholesale inventory software. This complex process requires time, dedicated resources, and change management, making the role of a Project Manager essential.
Yet, some employees continue old habits or resist the new process. A good implementation approach acknowledges this reaction. Allowing temporary adjustments—like printing extra copies—can ease the transition, with a plan to phase out old practices over time.
Successful implementation requires more than technical expertise; it demands soft skills. Instead of forcing change, the implementation team should guide users through the transition with understanding and adaptability.
The ideal candidate should not only understand business processes but also demonstrate key EQ traits:
Self-Awareness: Recognizing personal emotions and their impact on others helps Project Managers navigate challenges and employee resistance.
Self-Regulation: Managing emotions effectively allows leaders to foster trust and patience during transitions.
Motivation: A driven leader inspires others and ensures a smooth implementation.
Empathy: Understanding employees' concerns encourages collaboration and minimizes resistance.
Social Skills: Strong communication and persuasion skills help align teams with the new system.
By selecting a leader with these qualities, businesses can enhance software adoption, improve efficiency, and ensure a successful transition.
ERP Post Implementation Expectations Include:
After all the research and implementation, it’s time to see the benefits of your new ERP system. Here’s what to expect post-implementation:
Post-Implementation Analysis or Phase 2 Once the system is live, conduct a post-implementation analysis. This helps identify how effectively employees are using the system – see below for more information
Maintenance and Support Strategy You and your vendor should be working together now to establish a clear procedure for resolving issues, ideally involving the person who worked with the implementation consultant. Consider a vendor that offers personalized support. Regular software updates and upgrades should be scheduled for minimal disruption.
Multi-Channel Sales Funnel ERP systems enhance order management across multiple channels—eCommerce, marketplaces, POS systems, and EDI transactions. Integration with these platforms helps improve efficiency, reduce human error, and streamline sales processes.
Efficient Fulfillment With real-time inventory data and detailed reporting, ERP systems improve fulfillment. Track product movement, lot numbers, and landed costs to optimize pricing and inventory management, especially in regulated industries like food or pharmaceuticals.
Happier Customers and Employees ERP systems make the purchasing experience smoother for customers and reduce the workload on employees by eliminating redundant tasks. Customer service teams can access all relevant data from one screen, while employees benefit from fewer data entry tasks and better work-life balance.
Continuous Improvement Choose an ERP vendor that offers long-term value. Ensure the system can grow with your company by considering customization options, support, training, and maintenance programs. Stay engaged with the vendor for updates and further optimization to keep improving business processes.
By focusing on the right ERP system and vendor, you set your company up for long-term success.
The Importance of Phase 2 ERP Software Implementation
So far, you can easily confirm that ERP software implementations are far more involved than installing introductory business software like QuickBooks or consumer software like Microsoft Office. You would be amazed at how many business owners believe it is realistic to have a new ERP system in place within a week or two. The robust functionality of a true ERP system requires a proper implementation (planning, installation, configuration, data migration, and employee training) that will take at least several weeks if not months in total. This initial planning, installation, and training is what we refer to as “Phase 1” software implementation.
What Is Phase 2 ERP Implementation?
Phase 2 implementation is the notion of improving upon the bare essentials and fully utilizing the functionality available in the system you have selected. Phase 1 focuses on getting the software up and running, focusing on the essentials required to run your business. However, the most important, but more complex features are often left to a future date when employees are more comfortable with the software. This is a recommended strategy, but unfortunately, these next steps are often forgotten, leaving some of the most powerful features out of employee reach. Chances are you selected your software because of several powerful time-saving features – make sure you get everything you are paying for!
The importance of Phase 2 implementation cannot be overstated. Below are some of the benefits gained:
- Further Reduce Manual Processes: Phase 2 allows for a closer look at the details necessary to squeeze out as much efficiency as possible. Employees who know the software’s best tricks will be far more productive.
- Increase Business Transparency: Advanced reporting and analysis can be addressed in Phase 2 to ensure that you have access to all data important for measuring business success.
- Address System Limitations: Software is always evolving so there is always room for improvement. Robust software can easily accommodate changes and eliminate limitations where they once existed.
- Integrate/Eliminate Other Systems: A robust ERP system should accommodate the vast majority of your business processes. However, sometimes other systems are still required. Phase 2 can focus on finding ways to eliminate the workaround systems that are still in place.
Once you and your employees have become comfortable with your ERP system, it is time to revisit the software and ensure you are getting everything out of it that you can.
Are You Ready for The Next Step in Your Business?
Taking the next step in your business with an ERP system can propel your company toward greater efficiency, transparency, and long-term success. By embracing the full scope of the software through implementation, continuous training, and proactive maintenance, you maximize the return on your investment. The journey may be challenging, requiring time, effort, and resources, but the payoff in streamlined operations, improved data insights, and enhanced business performance is substantial.
As you reflect on your readiness for the next phase, consider the strategic advantages and growth opportunities that a well-implemented ERP system brings. Now is the time to harness the power of your ERP system and drive your business forward. You can also read our blog article on Four Quadrants of Time Management to broaden your knowledge on software implementation practices and project planning before attempting to implement an ERP solution in your business.
