Enterprise resource planning (ERP) system offers agility and flexibility in today’s dynamic business environment. ERP not only helps with better stock distribution in the times of today‘s disrupted supply chains but also with human resource management heavily affected by the pandemic. Leading a non-traditional business operation would be much more effective with the help of the right ERP system.
Finding which one suits your business model best could be a daunting experience. Best case scenario – you will find a system that covers all of your operations. Change management is another aspect of introducing a brand-new technology across all aspects of your business. And if you potentially trust the SaaS model – who will own the ERP and how will you integrate the current internal IT team in the new endeavor?
In this article, you will find the answers to the above-mentioned questions and we hope that we can help you on this journey:
Lay the Foundation – Focus on your critical organizational requirements. The groundwork around change management and data governance has to be done in order to prepare the company for the impact of the initial change. Every employee‘s concern has to also be addressed for a more smooth transformational process. When planning for ERP system integration – CIO has to keep in mind also future business development plans and expansions.
Rethink Your Process – Many off-the-shelf ERP systems will suit your business. Most of them are beautifully crafted to optimize processes in the best way possible. Take advantage of this and do not resist change just because “you do things this way and not that way”. Overhaul your whole organization’s process and come up with a list of critical parts during the digital transformation. Consider redesigning your thinking in an agile way so the company can benefit from every single positive aspect of the change.
Data Collection Capabilities – ERP will be your main source of information so make sure you gather all of your data sources and stream them in it. ERP will play the critical role of end-to-end service that will visualize your data in real-time and it can encompass multiple functions such as eCommerce sites, sales, billing, manufacturing, inventory management, delivery, support, or customer service.
Build an ERP Selection Team – Do not underestimate this step! Believe it or not, the implementation process itself costs less time than picking up the right partner for this journey. Assign an additional task to some of your employees to make research on potential IT transformation companies and display it on a comparison table where you can easily choose what best represents your interest. Having all the info you need at a glance you will easily evaluate is the technical fit for your project.
Develop a Realistic Implementation Plan – Let’s be completely honest here that deadlines are important. Consult with your vendor and estimate the real implementation duration period. Require a list of all activities needed for a successful installation of the software solution. Аnticipate a long enough testing period to be sure the new work environment software is fully functional and adjusted to your requirement. Do not skip the acceptance period of employees. The change will be big for them so make sure that you support them during the first few months.
Measure the Value of the New ERP System – Because what can be measured can be managed. If you want to unfold the full potential of the ERP system you have to measure its effectiveness. Think of the key indicators you want to optimize with the new ERP and put an estimate of what do you expect as a result. Most organizations are looking for a way to scale their growth and expand; optimize their expenses, and increase their revenue. Whatever your motivators are for implementing an ERP – write them down and keep track of them.
Ownership – Be sure to acquire a list of all costs that come with the new ERP system. There are a lot of risks associated with purchasing new software and calculating the total amount is one of them. Try to uncover all hidden costs that come along with a new ERP by talking with software salespeople. Clear all of them early on to be a lot easier for your organization to plan its annual budget.
New beginnings are never easy so we hope that these 7 points can guide you during your journey of finding the best ERP system for your organization. By adhering to these 7 principles we strongly believe that the implementation process will be smooth and painless. If after reading this article till the end you are still not sure what will work for you – please contact us to help you out.