What Is ERP Testing? Types, Process, Benefits, Challenges, and Strategies

In today’s business landscape, companies have become increasingly reliant on technology. Enterprise resource planning (ERP) is best for streamlining business processes and unifying systems all in one place. However, Gartner cites that over 75% of ERP projects won’t meet their initial objectives, while 25% will fail catastrophically.

Source: Gartner

Enter ERP testing, which is exactly what it sounds like—testing ERP software before its deployment. This testing ensures your software’s overall functionality and optimizes your business performance. But what is it, and how exactly does it work?

This page is a definitive guide to ERP software testing, including its various types and entire process. Read on to learn more about its pros and cons and, more importantly, get some best practices for its implementation.

What Is ERP Testing?

Enterprise resource planning (ERP) testing is a specialized form of test, whether manual or automated, performed on ERP software. The ultimate goal is to ensure this software works as expected before its full launch or actual implementation.

For the initiated, ERP is the software controlling all processes in a company, such as procurement, recruitment, human resource (HR), payroll, information technology (IT), supply chain, and inventory management. It houses all subsystems in an organization in one place for seamless data management and stakeholder interactions.

Some of the key players in the ERP testing field are:

• SAP is a renowned ERP software supplier noted for its extensive business application portfolio that combines numerous company processes.

• Oracle is a key participant in the ERP market, providing solid cloud-based and on-premises ERP systems for a wide range of businesses.

• Microsoft Dynamics is an ERP and CRM software suite by Microsoft itself that offers flexible and scalable solutions for small to large businesses.

• Intuit QuickBooks is well known for its accounting software, but it also provides ERP-like functionality for small to medium-sized organizations.

• IFS Applications is a globally recognized ERP software company focusing on enterprise asset management, service management, and project management solutions.

Learn the various types of ERP application testing you can employ in the next section.

Types of ERP Software Testing

ERP testing comes in different types. Are you looking to test your software’s overall functionality, performance, or security systems? Are you planning to integrate all your systems with a single ERP software or automate your tasks and processes? Understand that you must familiarize yourself with the specific test you seek to run.

For your reference, here are the different types you ought to know.

• Functional test: Functionality testing ensures each ERP system feature works as intended by meeting business requirements. For example, it verifies to see if financial transactions are appropriately recorded or if invoices are generated automatically.
• Performance test: Performance testing tools help determine how well the ERP system performs different workloads to guarantee it can meet current and future demands. For example, it ensures your system can handle bulk orders as swiftly as possible.
• Security test: Security testing uncovers system vulnerabilities and ensures that sensitive data in the ERP system is protected from unauthorized access. For example, it verifies data encryption and authorizes access controls for critical information.
• Integration test: Integration testing guarantees that your ERP system functions seamlessly with other software applications and that its modules communicate correctly. For example, it tests whether inventory reorder points trigger as expected or if purchase orders are auto-generated correctly.
• Automated testing: ERP Test automation employs tools to run tests without human interaction by imitating user behaviors such as clicking buttons or entering data. This test also provides automatically generated reports that highlight software concerns.
• Other types of testing: Other specific types of testing include smoke, installation, usability, adaptability, and regression testing. Each focuses on different system aspects, but these testing types generally ensure comprehensive system reliability and performance.

The ERP Software Testing Process

The entire ERP testing process has pretty straightforward stages. However, each phase can be a bit complex. It’s best to leverage AI-powered tools for software testing to assist you in the whole process.

For your guide, the process can be summed up into the following stages:

• Test preparation: As the name suggests, this phase prepares your team for the actual testing. The process involves identifying the business model, developing test cases, creating test suites, setting up test systems, and defining test data.
• Test execution: This phase is the actual test itself. It entails running the tests and fixing defects, not to mention generating and consolidating reports. However, it may require you to perform trial-and-error methods until your team arrives at robust ERP solutions for your business.
• Test evaluation: This is the final phase of the test itself. It involves analyzing the test plans, documenting processes, and arriving at informed solutions. This phase determines whether or not you can finally launch your ERP software or implement your new process.

It’s crucial, however, to create an effective enterprise testing strategy. Specifically, the ERP software testing process includes the following crucial steps:

• Plan your testing project.
• Set up the testing environment.
• Test manually or automate testing.
• Perform the actual user tests.
• Review testing data.
• Fix any potential issues.
• Launch your ERP software.

In the next section, discover the potential advantages and possible obstacles encountered in ERP testing.

The Benefits and Challenges of ERP Software Testing

There’s no denying the impact of ERP solutions on different businesses across various industries. That’s why companies or organizations invest in ERP software to improve their business and succeed.

According to Statista, the global ERP market size could grow from $52.33 billion this year to $62.36 billion by 2028 at a 4.48% compound annual growth rate (CAGR). The growing adoption of cloud-based ERP solutions is due to the potential benefits like business scalability, enhanced accessibility, and cost-effectiveness.

Source: Statista

Below are the potential benefits and possible challenges of ERP testing:

Potential Benefits

• Enhanced testing efficiency: ERP testing improves productivity by finding and resolving issues early, resulting in a smoother implementation process. Automated testing technologies accelerate the process by decreasing manual work.
• Guaranteed data accuracy: Rigorous testing ensures data is properly moved and maintained, reducing errors and discrepancies. This accuracy is critical for making sound business decisions.
• Improved system functionality: Robust testing ensures that all ERP system components work as intended, improving overall functionality. This test guarantees that company processes run smoothly and effectively.
• Increased business performance: A well-tested ERP system improves business operations, resulting in higher production and performance. It offers seamless integration and efficient workflow across departments.
• Cost-effective solutions: Identifying and fixing issues during testing might result in significant cost savings for post-implementation fixes. Efficient testing lowers the likelihood of costly outages and disruptions.

Possible Challenges

• Lacking reliable testers: Finding experienced testers who understand the complexity of ERP systems can be difficult. This can impact the quality and efficiency of the testing process.
• Possible resource limitations: ERP testing requires a lot of time, equipment, and qualified staff, which can burden resources. Due to limited resources, testing can be delayed, and the procedure may be less thorough.
• Poor project management: Ineffective project management can result in missed deadlines, budget overruns, and insufficient testing. Proper coordination and preparation are required to manage the testing process effectively.
• Complex system integration: Integrating many components and ensuring they work seamlessly can be difficult and time-consuming. This complexity might create integration challenges that are difficult to recognize and resolve.
• Potential performance issues: Performance testing must imitate real-world situations to discover potential problems. Ensuring the ERP system can withstand peak loads and extreme circumstances might be difficult, but it is essential for maximum performance.

Best Practices for ERP Testing

At this point, you understand deeply enough what ERP testing is and how it works. More importantly, you have weighed its pros and cons for your company or organization. However, it’s best to implement ERP testing strategy to ensure its successful implementation.

Suppose you are planning to deploy an ERP software for the metal industry. It’s best to have a unified platform for managing your resources and dealing with various stakeholders. In that case, conduct robust testing to ensure streamlined processes, whether for the metal supply chain, inventory management, or logistics.

But how can you optimize your testing process? Below are some best practices for ERP testing:

• Define your testing goals. What do you hope to achieve: optimize overall functionality, speed up performance, or integrate your ERP software with other systems? While at it, set your test coverage metrics in place to monitor and measure your testing performance.
• Establish a robust team. Who are the key players you need for a successful ERP project? A project manager, quality analysts (QA), test automation engineer and architect, and actual testers? Create a dedicated team responsible for overseeing the entire ERP testing process.
• Prepare resource requirements. Aside from a solid team, what tools and resources do you need? In most cases, you might need a testing platform, and testing environment as well as the tools and supplies required for your enterprise application testing strategy. Set them all in place before the actual testing.
• Set streamlined workflows. What steps are included in every phase, whether test preparation, execution, or evaluation? It’s best to sit down and brainstorm with the whole team. That said, create a step-by-step guide for all ERP software testing.
• Follow all critical steps strictly. What better way to ensure a successful testing project than strictly adhering to the ERP testing guidelines? But some testing circumstances can possibly occur. Set a contingency plan in place to ensure end-to-end testing for your ERP solutions.
• Automate your testing. Are you looking to empower your team by reducing manual testing and accelerating the entire process? Automation is key! That also lets your team focus on core competencies and strategic initiatives rather than wasting time on routine, repetitive tests.
• Test each and every scenario. What is this ERP testing for in the first place? As much as possible, you want to create the best possible outcome for your ERP solution. Sure, the entire process can be quite critical and exhausting. However, the best ERP solution can go a long way in achieving overall business success.
• Be patient in your ERP testing. Needless to say, patience is key to success, and this essentially applies to ERP testing. Take ample time to test your software until there are no underlying issues with its overall performance and functionality.

Final Words

Leveraging ERP software can contribute to your organizational success. It can optimize your business operations by centralizing systems and streamlining processes. It can boost your efficiency and productivity as well as promote quality assurance, employee empowerment, and customer satisfaction.

While ERP is a cost-effective solution for businesses, choose an ERP solution from a highly reliable service provider best suited for your company.

To begin, conduct robust ERP testing, whether functionality, performance, or automated testing.
More importantly, follow the entire testing process and implement the best practices shared above. Lastly, weigh the pros and cons of such testing by preparing for possible challenges and maximizing its potential benefits.

With these practical tips and steps, you can harness the power of ERP solutions to achieve overall business success!