A Complete Guide to ERP Testing - Types, Benefits, Importance & FAQs

What Is ERP Testing? 

What is meant by the term “ERP testing” is the process of verifying the functioning of your ERP software solution during implementation. ERP testing is a quality assurance (QA) process designed to ensure the ERP system is correctly implemented and operational before the full launch.
 
ERP testing across multiple stages of the implementation process prevents surprises such as the program crashing at go-live. It also decreases the number of bugs that would otherwise surface post-implementation. ERP testing during implementation is hardly new, as the Institute of Electrical and Electronics Engineers (IEEE) began promoting the practice through their conferences and publications more than a decade ago.

Download Your ERP Software Requirements List
 
The fact that crashes and bugs occur does not mean the software wasn’t well designed. When it comes to cloud-based ERP software, there is always some configuration to be done during implementation (think of report generation, custom dashboards, etc.)—and those configurations can be the source of bugs and issues of their own. For on-premise ERP solutions, another potential source of bugs can arise during customization. For example, changes to the code made to satisfy the needs of one set of users might inadvertently cause problems or reductions in efficiency for another set of users. Without ERP testing, the risk of implementation failure increases. The ERP tester should not only check the software’s functionalities but also make certain that reports and forms are being generated and displayed correctly. You can avoid having to fix post-implementation issues if you address any bugs during the testing stages. Doing so will save you a lot of system downtime. In addition, rapid adoption of the ERP software is vital to ensuring that the new system is used as soon as it is implemented and as efficiently as possible. A buggy system that is frustrating for new users is hardly a good way to get users onboard quickly. Bugs can also slow down the process of training users on the new system.
 

Types of ERP Testing

Companies implementing an ERP system need to perform several types of testing, with each type ensuring the functionality of a different aspect of the system.
 

Functionality Testing

Working from a precise listing of goals and definitions, functionality testing makes sure each of the features within a functional category is working and is fulfilling the needs of your organization.
 

Performance Testing

This type of testing examines how well the ERP solution runs as it communicates with the various systems it is designed to integrate with (e.g., financials, sales order processing, inventory, etc.). Performance testing should reflect demanding, high data flow transactions such as those that might occur under the highest potential peak demands, or preferably even beyond that, to ensure the system, as implemented, is sufficiently robust.
 

Integration Testing

As the name implies, this ERP test verifies that the ERP system has fully integrated the various processes it is meant to run. Integration testing verifies the individual modules or components within your ERP as a group—just like the software will be doing once implementation is complete. This type of ERP testing uses real-world scenarios wherein actual users run typical scenarios that they encounter in their work activities. You are testing how the ERP system can address real-world issues your organization encounters. You are ensuring that all the components or modules within your ERP systems are operating smoothly.
 
Functionality and performance testing can be done mostly in tandem during the early stages of implementation (i.e., well before the go-live date). Integration testing can begin early on during implementation and tested along the way to going live. As you identify adjustments that need to be made, you can make the necessary changes to your system and then retest it to ensure that it is stable.
 

Why Incorporate Automated ERP Testing?

ERP testing in an automated fashion (versus manual testing) is necessary for several reasons:
 

You Save Time During Implementation

Automated testing reduces overall implementation time and may also yield more information because testing data is stored automatically by the test tools.
 

Automated Test Scripts Uncover Issues

As you know, ERP solutions are complex systems, as ERP tools underpin many processes and link together many different systems. Thus, by running automated test scripts, you can quickly uncover any bugs or vulnerabilities and promptly fix them before they become big problems.
 

You Stay on Track During Implementation

Automated testing ensures the implementation stays on track so that your organization’s new ERP system is fully up and running as per the business requirements set forth at the start of implementation.
 

A Central Database Ensures Data Security

ERP systems integrate disparate sources of data into one centralized pool of data. Therefore, testing verifies that your centralized database stays actively connected to the various ERP-mediated processes and helps ensure the data remains secure.
 

It Optimizes Employee Productivity

Automated testing can also circumvent the kind of slow response times that manual testing can sometimes cause to ERP systems. It can also improve the user experience by avoiding the sorts of frustrating bugs that can leave new users wondering if they have made an error and need more training. Ease-of-use of the system not only influences efficiency and employee productivity but also has a direct impact on adoption rates.
 
There is always a human element in successfully adopting new procedures at work, including using new enterprise software. When users find the new ERP runs smoothly and error-free, they are more likely to take to it quickly.
 

A Hidden Benefit of ERP Testing

Testing ERP during implementation involves users from different user groups (i.e., stakeholders) who will be using the new ERP solution. The procedure plays a key role in training.
 

User Training Identifies Potential ERP System Issues 

Training plays a huge role in how readily the intended users will adopt the new ERP software. During the tests involving users from the various stakeholder groups, a lot of data and documentation can accumulate that will help with training others down the line. Also, the actual users or testers will be enjoying hands-on training. They can draw on this later when they sit down with others in their user groups to show them how to use the new ERP.
 

5 Tips for Successful ERP Testing

1. Don’t Skimp on Time

It’s important that processes specific to particular business groups (user groups or stakeholders) are tested and are fully functional. Going live before the system is fully tested can potentially lead to implementation failure. The system could constantly be affected by issues that could have been resolved during the testing phase. This can then massively reduce efficiency, and in turn, upset users and clients.
 

2. There Is No Such Thing as Testing “Too Much”

It makes sense to regard the testing of interfaces and, if applicable, any software modifications, as especially important. These two considerations are among the most likely to be buggy, so there is virtually no such thing as testing them “too much” during your ERP testing phase.
 

3. Don’t Jump Ahead to Implementation Before You’ve Followed All the Steps

Do not try to pressure the implementer to “jump ahead” to the final testing phases just because the initial test phases are smooth and bug free. Each phase tests different aspects of how the ERP solution will function post-implementation, so it’s wise to follow each of the steps conscientiously.
 

4. Appoint an In-House Project Manager

Your implementation partner may be managing the project and providing regular reports on progress and test results as the ERP testing phases move forward. Even so, it is important that you have a designated in-house project manager. This individual should be responsible for monitoring the project and keeping track of deliverables and milestones along the way. Remember that the implementer’s project manager does not report to you, the client, but to his or her own supervisor.
 

5. Be Patient!

Automated testing might seem like “busy work” to some, but exercising patience is beyond any doubt the wisest course of action. By carefully following through on each aspect of the testing phase, you can ultimately save your organization both time and money. You will also ensure that your implementation stays focused on getting the new ERP solution fully integrated and up and running as soon as possible.

Testing and Implementation Don’t Need to Be in the Dark

If you have questions about ERP testing specifically or more general questions about conducting a properly run implementation, remember that advice and help are available from TEC’s impartial experts. In addition to TEC’s well-known expertise in software selection, advisory services, and various resources like ERP comparison charts and requests for proposal (RFPs), our consultants can also provide guidance with testing and implementation oversight. Whether you need guidance in selecting, testing, or implementing your ERP solution, contact us for impartial help that will enable you to get the most out of your enterprise software.
 

FAQs

1. What is ERP?

A more detailed explanation can be found here, but in short, ERP stands for enterprise resource planning. This type of software system integrates core processes within a business, such as financials, inventory management, human resources, etc. Before ERP systems, businesses used individual software solutions without a single database, and many of these tasks weren’t automated, which took up a lot of valuable time.
 
However, it is hard to define ERP systems because different industries use different types of ERP. The meaning of ERP systems, therefore, changes between industries whose ERPs contain different applications specific to that industry.
 

2. What are the different forms of ERP testing techniques?

To quickly review:

• Functional ERP testing ensures each feature of the ERP works and fits the needs of your company by working through a precise list of goals.
• Performance ERP testing checks how well the ERP runs.
• Integration ERP testing makes sure the ERP has been fully integrated into the systems it’s meant to run.
• Automated ERP testing means testing is done through a computer rather than through a human. This type of testing is normally faster and can sometimes circumvent some of the issues that can occur with manual testing, but automated testing should still be paired with manual testing.

3. What is the ERP testing process?

The testing process can sometimes differ depending on the situation, but normally it follows these steps:
 

1. Set up the test environment
2. Automate the testing: computer scripts simulate the simpler tasks in the ERP, and will identify bugs much more quickly than humans can.
3. Test manually: this is for when there are aspects of the ERP that are too complex to be tested through a computer, so an ERP expert gets involved in the testing.
4. User test: this is when the people who are actually going to be using the ERP test the system by performing relevant everyday tasks.
5. Review data
6. Correct any issues

4. What is the best tool for ERP testing?

The answer is: it depends. Each ERP system on the market is different. Because of this, your testing tools may be impacted due to a variety of factors: the ERP version, the ERP domain, and your technology platform. It’s important to speak with your ERP testing expert(s) to gauge which tools you’ll need.
 

5. How important is testing to ERP implementation?

ERP testing is a mandatory process during the implementation phase. Because the ERP system is so central to how a company runs their core processes, testing is the way to check for bugs that can slow down your company’s efficiency to a crawl and get those bugs resolved before the system goes live. 

Implementation failure can be disastrous, particularly since many ERPs are a big financial investment. It may be tempting to skip testing in favor of fixing the system as it goes, but you can never predict the kind of issues that can arise. Constant issues with the system can give a poor impression to clients. It is best to simply test the ERP system before it goes live.
 

6. Why are experts required when testing and implementing the ERP system?

ERP testing experts understand the variations between ERP systems because they have a large amount of domain knowledge and industry experience. They know how to test the system, what to look for, and how to resolve any issues or bugs uncovered during testing.
 

Related Reading

• Finding Eureka—The New Science of Online Testing
• Stressed Testing: Applications Demand Better Test Data Management
• The 5 Biggest ERP Implementation Challenges