Implementing an enterprise resource planning (ERP) system is a significant step for any growing business. But choosing the right ERP solution is only part of the journey. To truly seize market opportunities, businesses need consistent, accurate, real-time, actionable information at their fingertips. Yet, as businesses grow and operations become more complex, they often find themselves operating with information they can’t fully trust or use effectively. Decision-making becomes reactive and processes could eventually end up breaking down.
These frustrations drive many companies to consider an ERP system. But how do you evaluate and choose the right ERP solution? Here, we’ll explore the basics of ERP and provide a roadmap for assessing and selecting a solution that works for your business.
ERP 101
In simple terms, ERP is a central database that brings together essential business processes—like managing inventory, processing customer orders, and handling financials—all in one place. This integration makes it easier for people across the company to collaborate, share information, and make informed decisions.
The benefits of an ERP system typically fall into three main categories:
- Cost savings: Both direct and indirect savings from streamlined processes and reduced duplication.
- Revenue growth: Opportunities to increase revenue by improving efficiency and responsiveness.
- Business effectiveness: Enhanced collaboration, consistency and decision-making across the business.
When do you need a new ERP system?
A new ERP may be necessary if your business is experiencing any of the following:
- Siloed information: Key processes are isolated, with critical information relying on specific individuals.
- Manual and duplicate data entry: Data entry is inconsistent and duplicated across various systems.
- Growth-related challenges: Your business has outgrown current systems, or competitors are advancing while you struggle to keep pace.
- Dependence on external developers: Your business is overly reliant on system developers or service providers for essential functions.
Building a well-coordinated ERP team
Much like a winning sports team, an ERP system is only effective if everyone involved operates in a coordinated, collaborative manner. For South African rugby fans, it’s easy to relate: even the world’s best players won’t succeed without a well-coordinated team they can rely on. Similarly, a business thrives when all departments work together effectively, sharing information and contributing to collective goals.
To avoid chaos and waste, assemble a team to define your ERP needs and gather metrics on the project’s goals and expected outcomes. Involve key stakeholders from across the business. These are often the individuals with the most to gain or lose from an ERP implementation.
Avoid the “must-have” trap
In today’s market, it’s easy to fall into the trap of adding trendy “must-have” requirements to your ERP wish list. For instance, you might feel pressured to specify that your ERP “must be cloud-based” without truly understanding the benefits or costs. Take a step back and carefully consider why each feature is important and what value it will add to your business. Quantify each requirement to ensure it aligns with your broader goals.
Seek out expert guidance
Unless you have someone on your team who has navigated multiple ERP implementations, consider engaging an experienced third party for guidance. A skilled consultant can provide governance, help steer the selection process and ensure you avoid common pitfalls.
Selecting the right ERP system isn’t easy. Each system has its strengths and weaknesses, so it’s essential to identify and prioritise your business’s key requirements. Weigh these factors carefully to develop a shortlist of two or three vendors that align with your needs.
Choose the right implementation partner
Once you’ve chosen your ERP system, the real challenge begins: selecting an implementation partner. Unfortunately, this part of the process is often overlooked or rushed, but it’s crucial to success. A capable partner will work closely with your team, understand your business’s unique needs and ensure the ERP system is implemented effectively. We’ll dive deeper into the importance of selecting the right implementation partner in a future blog.
At the end of the day, choosing an ERP system is a critical decision – but it’s only the beginning! From defining clear requirements to coordinating across departments and selecting the right partner, each step in the process is essential to achieving the benefits ERP promises. At epic ERP, we understand the complexity and challenges of ERP implementation. Our team is here to guide you through every phase.
Ready to explore how ERP can transform your business? Contact us to learn more about our solutions and expertise.
Keep an eye on our blog and social feeds where we’ll explore how to select the right implementation partner for a seamless ERP journey soon.
