The right approach for testing the ERP applications

Enterprises are realizing the need to leverage the SMAC (Social, Mobile, Analytics, and Cloud) model to accelerate growth. However, overhauling core processes administered by legacy ERP applications is equally critical. ERP applications help enterprises manage various functions, departments, and processes, including the data generated therein.

These applications help enterprises to run as one single unit and, in the process, generate outcomes such as improved productivity, better efficiency, reduced waste, enhanced customer experience, and increased ROI. In view of the criticality of ERP applications for organizations, they should be tested and validated. Testing ERP applications can ensure the smooth functioning of multiple tasks within organizations. These may include tracking inventory and customer transactions, managing finances and human resources, among many others.

Why is ERP software testing needed?

ERP software is cost-intensive and requires a lot of investment in time and effort. Every ERP software comes with multiple versions and requires customization to suit specific business requisites. Moreover, since every element in the application is connected to some other module, upgrading them can be a challenging task. For example, creating a sales order would need access to the inventory management module. If any of the modules does not function to its optimum, the entire ERP application may be impacted. This can have a cascading effect on the performance of the company as well as create bad customer experiences. Hence, testing ERP applications shall ensure the correct implementation of the software and prevent crashes.

ERP software testing, besides checking the software’s functionalities, should ensure the generation of reports and forms accurately. By identifying and removing bugs during the testing phase, testers can avoid facing post-implementation blues. Moreover, it can lead to an early adoption of software and ensure its smooth running. ERP application testing services validate business processes, functions, and the rules governing them. They help reduce operational risks within the constraints of available resources and time.

Approaching the testing of ERP applications

It is imperative for enterprises to set up a robust testing strategy. The strategy should prioritize the testing of processes depending on the short and long-term goals.

Setting up KPIs: At the outset, testers should setup the KPIs or performance metrics and evaluate how they will impact the overall organizational goal as well as departmental objectives. Thus, establishing the KPIs will help derive the right ROI for the organization.

All-encompassing: ERP implementation for a large organization with many departments and processes can be a complex and challenging job. However, it is important that all stakeholders are taken into confidence and involved in the process. The process also includes making the necessary investment in training. When everyone is involved in ERP implementation, there is more cohesiveness in the administration of the software.

Data migration: An organization can plan its strategic moves if it can make use of its data emanating from various processes over a period of time. To ensure real data is not lost or distorted in any way during ERP validation and testing, its proper migration process should be planned beforehand.

Selecting the right automation tools: As ERP software can have myriad variables interfacing with various processes, they need to be validated. This requires choosing the right test automation tools - open-source or premium ones. Automated ERP testing can validate a large number of variables for various processes against expected outcomes. The right automation tool will help testers to write and execute test cases.

Identifying test cases: Since it is not possible to test every sinew of an ERP application, proper test cases should be written to ensure the maximum test coverage. Thus, testers should identify the test cases for each test and document them as well. Also, since ERP processes are linked to each other, and even to third-party applications or modules, they should undergo automated ERP testing.

Conducting performance, regression, and security tests: As an ERP system helps to run the operations of an enterprise as a single unit, it should run some critical tests. These include regression, performance, integration, security, and usability tests. This way the enterprise can ensure continuous monitoring of the system, save time and cost, and prevent any sudden downtime or latency.

Proper documentation: Post testing of components in the ERP system, the documented glitches ought to be analyzed to preempt any failure in a real environment. Moreover, the reports can be used for future reference.

Conclusion

To sustain in the competitive business environment of today, businesses need to take digital initiatives such as implementing an ERP solution. However, to ensure the successful running of such a solution and derive benefits out of it, enterprises should carry out ERP testing. The approach for such a testing should involve automation and carrying out various types of testing.

What is the importance of ERP testing?

Today’s enterprises are subjected to a lot of pulls and pressures - from the markets, competitors, customers, and stakeholders, among others. They need to be up with the times in terms of technology, processes, and general market trends to meet their productivity and sales targets. However, given their footprints, in many cases, lying across territories, they need to remain connected with their branches, employees, and stakeholders, in real time. This is where an Enterprise Resource Planning (ERP) software can help matters by tying the organization in a single unit.

The ERP software enables an organization to run smoothly by collating all data generated from various units. It helps stakeholders to analyze such data and get insights into the processes and requirements in real time. The insights can further help in formulating and implementing strategies on the ground to remain competitive. An ERP software can have interfaces with various departments within an organization viz., finance, human resources, administration, supply-chain management, and customer relationship management, among others. By streamlining business processes and eliminating manual work, an ERP software suite can help improve productivity and efficiency, enhance the quality and speed of delivery, and achieve ROI.

Since the ERP software can be the virtual lifeline of an organization, its effectiveness needs to be top-notch at any given point in time. This is of utmost importance as any software glitch can bring processes to a standstill by giving erroneous inputs to the respective departments. To ensure smooth functioning of the software system under severe test conditions, ERP testing should be made a routine exercise. Nowadays, enterprises deploy third-party resources to manage various tasks owing to the latter’s core competencies. These resources are accessed (both ways) through the cloud or mobile services. To ensure a smooth progression of such services, businesses should brace themselves for testing ERP solutions. This is in alignment with the objectives of Agile or Lean methodologies. Let us understand in detail as to what an ERP testing exercise can deliver -

Why ERP quality assurance and testing?

For beginners, ERP testing is a QA process to ensure the comprehensive software suite is made fully operational before deployment. It checks various units, features, and functionalities of the software against a set of parameters or metrics. The various tests that are part of the ERP QA include functionality testing, performance testing, integration testing, user acceptance testing, and unit testing, among others. So, why do we go for ERP validation in the first place?

Time saving: During ERP implementation, any glitch can derail the functioning of the software or generate erroneous results. To identify such glitches, the testing team needs to unscramble each of the integrated units. This can be hugely time-consuming leading to delays. However, should testing ERP solutions be a part of the SLDC in the Agile format, considerable time can be saved in mitigating glitches.

Early mitigation of glitches: By following a shift-left automated ERP testing process, glitches can be identified quickly. Since both testing and development processes take place in a sprint, identification and mitigation of glitches can be quick.

Data security: One of the biggest issues plaguing the digital ecosystem is data security or the lack of it. Moreover, since an ERP system pools data from disparate sources to a centralized repository, hackers can exploit the data pool. An ERP centre of excellence can leverage the right tools to verify the centralized database. This way, it can secure the database by removing any inherent vulnerabilities.

Improved productivity: An operational ERP software can identify the operational needs and verify the presence of inventories. It can ensure the proper deployment of resources, thereby saving time and cost. Also, automated testing can get around the slow response times of manual testing and improve productivity.

Achieves ROI: An efficient ERP system can deliver suitable outcomes within tight turnarounds thereby saving time and cost for the organization. Moreover, by streamlining processes, breaking silos, and attending to customer feedback promptly, the organization can deliver better user experiences. A happy end-customer will generate better sales and enhance brand equity through word-of-mouth. This leads to better ROI for the organization.

Conclusion

Testing of ERP applications entails the validation of their performance, functionality, user acceptability, and security. Its absence can have serious implications for the business processes, configuration, interfaces, or security of an organization. A robust ERP testing exercise can help an organization to meet its business objectives by optimizing costs.

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