Tips to Select the Best ERP Solution for your Business

Have you ever been a part of or participated in the Enterprise Resource Planning (ERP) selection project? The majority of manufacturing professionals have been exposed to ERP selection at least two times in their careers and there's not any tribal knowledge within your company about the procedure. Evaluation and selection of an alternative ERP solution is a costly and time-consuming procedure. It can cost a lot of time and money. Transformation and optimization projects are risky and require appropriate investment. If not executed correctly these initiatives can destroy the company. If done correctly new technologies can give a tangible, quantitative competitive advantage.

In my experience working with over 200 Enterprise Resource Planning choice projects, I've witnessed vendors make every effort to make a sale. Unexpectedly, certain vendors will do only the minimum to gain your company. In order to get their foot in the door, vendors sell their software too much and undervalue the value of their services. In one instance the vendor tried to sell a $50 million distribution company an ERP software with no A Statement of Work! There was no estimate of the cost of services. My participation was as a third party and I proposed an implementation plan which was 5 times as labor and expense as assigned.

The larger the business, the riskier it is. Companies that vet service projects ranging from $50 to $250 million should be in order and be very knowledgeable buyers! It may take a long time for larger companies to develop adequate Statements of Work that accurately represent the cost and effort required to ensure a successful implementation. In every aspect of integration, functional, and data conversion is crucial.

What are the details they need to know? How do they reach the amount of detail required in determining the scope of work and what's out, and what is the Phase 1, 2, 3, and 4? ...? The process of planning for implementation prior to implementation and the steps needed to accurately estimate the components of service in an ERP project is the essential element of a successful ERP project.

In the process of planning for implementation An organization should determine the following:

Functional areas that are covered

Many companies aim to get all functional departments included in the initial phase of their project, but it's not always the case. In most organizations, there are some higher-priority areas that require to have the technology to support. For instance, production could be more crucial to incorporate in an ERP as opposed to Human Resources, and many manufacturing companies have a Quality Assurance Program that is an independent application. Certain of these applications might remain in place for a short period until the ERP is implemented, or remain in place for the duration of. Deciding which functional areas have to be considered in the project is an excellent beginning point to create that you have a precise Scope of Work estimate.

Basic functionality versus advanced

An organization should ask itself whether it is able to handle the complexity of the processes it is currently using. Where are the complex processes and what is the reason? Are we experiencing this complexity as a result of system limitations and workarounds or is it the secret ingredient in our recipe? In the past, businesses that limit the initial application to the most basic ERP functions may be able to reap greater benefits than they had previously thought. Many organizations, big and small, are unable to handle their receivable and payee processes. There were workarounds for a long time because the technology was not suited to the process, or because processes that were upstream caused problems downstream. A standardization approach, along with many instances, centralizing AR as well as AP processes, is an excellent way to cut the risk and cost of the implementation process and improve efficiency for the business. What are the areas where advanced functionality comes into the picture? Usually, advanced functionality is aligned with complexity and is viewed in supply chains, production distribution, and supply chains, but is a significant influence on billing and estimating functional areas. What kind of advanced technology is required and what it is that can be implemented should be stated within the statement of work.

Internal allocation of resources

Anyone who is going through one of the ERP installations for the very first time is underestimating the amount of effort required from their company. The magnitude of the change can be overwhelming and daunting and backfilling is required because we shouldn't expect our best employees to step over their work. The work really begins with the process of implementation. Simply getting to a point at which an organization is aware of the needs of their employees as well as their drivers and processes enough to be able to communicate a clear story to a vendor when they evaluate is an important element of that process. An enormous number of internal resources need to be allocated to designing and implementing changes within the company. Functional leaders and SMEs are essential to the whole process and must not just be present, but also an active participant in the process and also to help in the transition of work. When groups add support at the back new roles and positions are created and filled giving your internal specialists the chance to grow the business and contribute to its success. Internal resource allocation should be defined clearly and a contingency plan needs are included to allow the company to be successful in a venture that will help determine the future direction of the business.

Plus...

Also, be aware of diverse items that could cost dramatically including data conversion, integrations, and change management for organizations.

Want More Information About Our Services? Talk to Our Consultants!