Procuring and implementing a new ERP system might be the most important investment your company makes. An ERP system that is tailored to the business model and specific work processes can enhance efficiency, productivity, and ultimately profitability.
On the other hand, a new ERP system can be a poor investment if it complicates work or creates unnecessary extra tasks. Here are the most important things to consider before purchasing a new ERP system.
Goals and requirements – What should the ERP system be able to do?
The first thing a company needs to do is conduct a thorough analysis of the need for a new ERP system – why it’s needed, what the goals of the implementation are, and what the new system must be capable of doing. Common goals for a new ERP system include increased automation in work processes, enabling the entire organization to operate more efficiently, which in turn can lead to increased profitability.
It’s crucial to be detailed and specific about what the system must be able to do and which features are needed, as this greatly increases the chances of achieving the goals. For smaller companies, it can be challenging to understand what the business truly needs, and it’s important to find a system provider who can understand your business and identify what you require in an ERP system to make the business more efficient.
Assemble a work group – Get employees on board
A new ERP system is a major change that will affect the entire company, so it’s important to include employees from all parts of the organization. This way, you’ll gain their perspective and ensure they support the requirements specification.
Create a workgroup with representatives from all departments and appoint an internal project manager who will lead the effort together with the project manager from the supplier you choose.
Choose a supplier and system – standard or customized?
There are many ready-packaged standard solutions, but few, if any, will align with all the points in your requirements specification. Research potential suppliers who can develop an ERP system tailored to your business and unique needs.
As technology and best practices have developed to allow cost-effective and simple coding, it has become increasingly common for companies to work with a supplier to develop their own ERP system. This ensures that the system follows your requirements specification to the letter, providing the best chance of achieving your goals.
It's important to remember not to get too focused on code and programming when choosing a supplier. Make sure that potential suppliers have expertise in business development and business architecture. Your business should always be the top priority, with technology being just the tool used.
