ERP implementation phase: 5 steps for a successful project

As an organization grows, its operational complexity increases — and so does the need for better systems that connect data, people, and processes. At a certain stage, every expanding company faces a crucial decision: implementing an enterprise resource planning (ERP) system to streamline operations, improve efficiency, and support scalable growth.

ERP implementation represents one of the most transformative initiatives a business can undertake. It involves not just a financial investment, but also significant commitments of time, personnel, and strategic planning. That’s why understanding the ERP implementation phase — from preparation to go-live — is essential to ensure the organization is aligned with the vision and reasons behind the project.

The success or failure of an ERP system often depends on the quality of its implementation. When the ERP implementation phase is managed correctly, businesses can achieve faster adoption, improved productivity, and a higher return on investment (ROI). Conversely, a poorly executed implementation can result in wasted time, unnecessary costs, and limited long-term value.

What is ERP implementation?

The ERP implementation phase is the process of deploying enterprise resource planning software to unify all business functions — such as finance, operations, human resources, and supply chain — into one integrated system. Depending on a company’s size, industry, and unique workflows, this phase may involve configuring a standard solution or developing a custom ERP tailored to specific requirements.

A successful ERP implementation phase also includes thorough testing and comprehensive employee training to ensure system readiness. Testing data, workflows, and core functions before launch minimizes post-deployment errors and ensures the system supports the company’s strategic objectives from day one.

Phase 1 of the ERP implementation phase: Diagnostic and Analysis

The first phase of the ERP implementation phase — often called the diagnostic and analysis stage — focuses on understanding the business environment, defining project goals, and preparing the foundation for success. This step ensures that every critical component of the project is examined and that clear roles, responsibilities, and deliverables are established for project initiation and long-term sustainability.

Objectives

The main objectives of this ERP implementation phase are to:

• Develop and approve the project charter and implementation plan
• Conduct and participate in the official project kick-off meeting
• Document and validate all functional requirements
• Identify potential risks and create mitigation strategies

Deliverables

By the end of this phase, the project team should produce:

• A comprehensive project charter
• A detailed project plan
• A risk and issue log
• A functional requirements document (FRD)
• A gap analysis spreadsheet outlining solution fit

Phase description

The diagnostic and analysis stage begins with ERP project kick-off meetings where stakeholders gain a shared understanding of the project’s vision, scope, objectives, key performance indicators (KPIs), and expected business benefits. Following this meeting, the project planning team finalizes the project charter and implementation plan, setting a clear roadmap for the next steps in the ERP implementation phase.

During this stage, the team gathers and documents the organization’s business requirements — a vital activity when implementing systems like Microsoft Dynamics 365 ERP. These requirements are captured in the Functional Requirements Document (FRD), which serves as the foundation for the Fit-Gap analysis workshop.

The training team identifies skill gaps and defines user training needs, while the consulting team assesses and records data migration requirements. Meanwhile, the technology team evaluates non-functional requirements, such as system performance and infrastructure readiness, and provides recommendations for optimal environment configuration.

Once all requirements are documented, they are analyzed and validated with the client to obtain formal approval. This final review establishes the definitive scope of the ERP implementation phase, ensuring alignment between business needs, solution capabilities, and project objectives.

Phase 2 of the ERP implementation phase: Design

The design phase of the ERP implementation phase focuses on translating business requirements into a functional and technical blueprint for the new system. During this stage, the project team defines how each business process will be configured in the ERP solution, establishes data migration strategies, and creates the test criteria necessary for validation. This phase is critical to ensuring that the final system design supports both current and future business needs.

Objectives

The primary objective of this ERP implementation phase is to determine how the documented business requirements will be implemented in the ERP solution. For upgrade projects, the focus shifts toward defining how the technical upgrade will be executed to align with the organization’s existing infrastructure.

Specific objectives of the design phase include:

• Establishing and organizing the full project team structure
• Configuring the Microsoft Dynamics 365 ERP solution based on business requirements
• Documenting all necessary adjustments and configurations in the Functional Design Document (FDD)
• Specifying detailed functional design specifications for each required system modification
• Creating mappings and design specifications for system integrations and interfaces, including developing an integration and interface plan
• Defining data mapping and migration design in the FDD and developing a data migration plan
• Producing technical design documents to address gaps identified in the functional design and approved by the client

Deliverables

Key deliverables for this ERP implementation phase include:

• Confirmed project team setup
• Completed functional design documents (FDDs)
• Functional design documents addressing identified gaps
• Functional design documents for integration and interface requirements
• Functional design documents for data migration needs
• Approved technical design documents
• A finalized solution design document (SDD)

Phase description

Building upon the insights from the diagnostic and analysis stage, the design phase transforms business requirements into actionable system specifications. The project team collaborates closely with stakeholders to ensure that every functional and technical aspect of the ERP solution aligns with the company’s operational goals.

By the end of this ERP implementation phase, the solution design document (SDD), functional design document (FDD), and technical design documents (TDDs) are all finalized and validated. Once the client provides sign-off on these design elements and final estimates, the project transitions seamlessly into the development phase, where configuration, customization, and integration work officially begin.

Phase 3 of the ERP implementation phase: Development

The development phase of the ERP implementation phase focuses on transforming the approved design documents into a fully configured, functional system. This stage involves finalizing system setups, developing custom code, and preparing user training materials to ensure that the ERP solution is both technically sound and user-ready before deployment.

Objectives

The primary goal of this ERP implementation phase is to execute the build and configuration of the ERP system according to the specifications defined during the design phase. It also involves conducting thorough system and performance testing to confirm that the application and data are functioning properly within the upgraded version of Microsoft Dynamics 365 ERP.

Key objectives of the development phase include:

• Completing the configuration and setup of the standard ERP solution
• Developing and finalizing all custom code required to support business processes
• Executing system testing to validate application and data upgrades
• Reviewing performance benchmarks and resource requirements to ensure scalability and efficiency
• Preparing user training documentation to facilitate smooth adoption during later phases

Deliverables

The development phase results in the creation of all core system components and supporting materials required for deployment. Deliverables include:

• Comprehensive training materials
• Finalized business process models
• Completed system configurations
• Fully developed custom code
• Executed solution testing, including process, integration, and data acceptance testing
• Detailed production environment specifications
• Final integration and interface code
• Completed data migration scripts and code

Phase description

Throughout this ERP implementation phase, project management remains active to oversee communication, risk and issue tracking, and change request management. The deployment plan — initially drafted during the design phase — is updated to reflect the most current project requirements and timelines.

During this phase, the consulting team finalizes configuration tasks and sets up user security roles based on previously approved designs. In parallel, the infrastructure team prepares and delivers the production environment specification document, enabling the client to begin procuring the necessary hardware, software, and licensing.

Training materials are also finalized and reviewed with the client to ensure user readiness and consistency across departments. Before moving forward, all deliverables produced during this ERP implementation phase undergo rigorous quality verification to ensure compliance with client expectations and performance standards.

Phase 4 of the ERP implementation phase: Deployment

The deployment phase of the ERP implementation phase marks the culmination of months of planning, design, and development. It is the stage where all project activities come together to transition from the old system to the new Microsoft Dynamics 365 ERP solution. This phase is crucial to ensure a smooth go-live experience and a stable, functional production environment.

Objectives

The key objectives of this ERP implementation phase are to:

• Configure the production environment and ensure it aligns with performance and security requirements
• Migrate all verified data to the production environment
• Conduct comprehensive user acceptance testing (UAT) to validate system functionality
• Finalize user documentation and deliver end-user training sessions
• Perform the final system go-live checklist and promote the ERP system to production

Deliverables

At the conclusion of this phase, the following deliverables are produced:

• Completed user training sessions
• Documented user acceptance test results
• Final data migration (for new implementations)
• Approved go-live checklist
• Fully configured production environment
• Executed production migration and cutover activities

Phase description

The deployment phase is one of the most critical stages in the entire ERP implementation phase, as it directly impacts business continuity and user adoption. During this period, project management activities continue to ensure effective communication, risk control, and alignment between all teams.

The deployment plan, originally drafted during the design phase, is now finalized and executed in collaboration with the consulting, technical, and project management teams. The training team refines the user training materials developed earlier and delivers hands-on sessions to ensure users are fully prepared to operate the new ERP system confidently.

For larger corporate implementations, this phase also includes performance validation to confirm that the solution meets expected benchmarks. Meanwhile, the infrastructure and technical teams configure the production environment, set up failover capabilities, and complete final environment adjustments required for go-live readiness.

Once all deployment activities are completed and validated, the system officially transitions into the operations phase, marking the successful completion of the deployment phase of the ERP implementation.

Phase 5 of the ERP implementation phase: Testing and Post-Go-Live Support

The final phase of the ERP implementation phase focuses on validating system performance, providing post–go-live support, and ensuring a complete transition of knowledge to the client’s internal teams. This stage marks the formal closure of the ERP project — confirming that the system operates as expected and that all deliverables meet the organization’s objectives.

Objectives

The key objectives of this ERP implementation phase include:

• Delivering post–go-live support to stabilize operations after deployment
• Transitioning the ERP system into full production and operational status
• Conducting a final quality audit to verify deliverables and performance
• Completing project documentation and preparing for official project closure

Deliverables

At the end of this phase, the project team should provide:

• A comprehensive project closure report
• The final delivery of all project documentation and deliverables to the client
• A lessons learned report to guide future ERP projects and continuous improvement

Phase description

The testing and post-go-live phase begins immediately after the system is deployed. During this stage, the program management team finalizes key documentation such as invoices, the project closure report, and the lessons learned summary. A complete file of all project deliverables and acceptance forms is compiled and reviewed with the client to ensure final approval and sign-off.

Meanwhile, the functional and technical teams remain actively involved in addressing any remaining issues that may arise following deployment. Their focus is to ensure smooth system performance, resolve user-reported problems, and validate that all processes function as intended within the live production environment.

The support teams also play a critical role during this phase, assisting with troubleshooting and ensuring that system stability and data integrity are maintained. Knowledge transfer activities — including detailed handovers, documentation, and final user guidance — are completed to equip the client’s team with the expertise needed to manage the system independently.

Once all outstanding issues are resolved and support objectives are met, the ERP implementation phase officially concludes. The project team performs a final review, obtains client approval, and transitions the system to ongoing maintenance and optimization — ensuring the organization continues to reap long-term value from its ERP investment.

Implementing an ERP system with Gestisoft

We have also come up with a list of key factors for successful ERP implementation.

This list is a result of our many years of experience in the field and serves as a reference for each project. So, take advantage of it yourself! You will surely find it to be an invaluable tool, and we will be happy to answer any questions you might have!

Our team helps Quebec companies in their digital transformation through Microsoft ERP and CRM applications. Our role is to identify the ways in which these solutions can effectively expand your business. From manufacturing to sales management, our experts will find out how Microsoft Dynamics 365 can accelerate your success. Contact us today to book our team for a free consultation.

Check out our blog on why Gestisoft is your number one choice when it comes to ERP implementation in Montréal.