The ERP tech landscape is not what it was a decade ago. As we move to reassess what the future might look like, rolling out new ERP tech in a sea of competition might not feel so simple. Do you go old-school, or take a chance on a challenger?
We explore 5 benchmarks you can use to make sure you're hitting every necessary decision, each step of the way.
1. Takes one to know one
It goes without saying, but you can't find a solution until you know exactly what you need. What matters most? Do you need robust financial management? Advanced supply chain capabilities? Integration with legacy environments?
Your ERP isn't an isolated tool. It must integrate seamlessly with existing business applications. Whether you're retaining certain tools or looking for replacements, ensure your chosen ERP is able to play nicely with them.
My colleague Adam wrote recently about the emerging importance of Big Data in business - as the differentator between success and lagging behind. You might even call data the new oil. Your ERP needs to be able to store data, and - to be competitive - offer advanced analytics, BI, reporting, and visualisations. This gets you closer to the gold-standard of data centricity.
2. Who's the boss?
Before any ERP rollout, you need a firm understanding of the decision-makers. And in turn, they need to know how they will be involved, long before anything kicks off.
The IT team will provide the technical lens. Expect insights on system compatibility, security, integration timeframes, required resource, and more.
Business leaders will be your humanising insight into the effect of a rollout, and a guide to the best way forward. They can highlight process requirements, areas for efficiency improvement, cost, and other functional "big picture" needs the tech teams will be less focused on.
3. Keeping it in the family
A key consideration for ERP implementation, beyond the what and why, is the "who".
ERP projects require high levels of dedication. Some resource may need 100% secondment onto the project. So, managing internal resource is crucial. Do an honest assessment to see if you have the in-house skillsets to implement and manage the new ERP and save yourself the grief further down the line.
Are there skill deficits across the team? If you're dead set on keeping the rollout as internally resourced as possible, it could make more sense to invest in training. But remember - this will influence both the rollout timeline and make a dent in your budget.
It's your job to make the call on external resource. Whether you're looking at third party vendor staff, systems integrators, or contract resource - there are pros and cons to all. Ideally, you want to make a decision that offers the highest levels of coverage across internal process understanding, project delivery expertise, and adapability, and technical knowledge.
4. Try before you buy
It's not easy to visualise how a new ERP could work for you, but the decision-making process can be eased with extensive demo-ing.
I recommend multiple demos. Why? Well, you need oversight into key features from your new piece of ERP kit. But you should also reach out to existing systems or applications you want to retain, and get their view on integration obstacles, key features, and any internal set-up you'll need to plan in.
Use your demos to ask the right questions. How does the system handle data security, for example? What's the support function like? How customisable is the interface and what is the process for having new features added?
We've all been stuck staring miserably at a vague catch-all roadmap before - if your use case is particularly unique, consider choosing an ERP provider with dedicated support and dev time included in your retainer.
5. What does the future look like?
ERP tech isn't cheap. If you're being asked to implement something new, the likelihood is the organisation is in a stable financial position and is looking to grow.
So, make sure your choice is scalable and aligns with business vision. Where is it going to be in 5 years? Is your choice of ERP going to solve more problems than it creates?
We don't all have a crystal ball, but there are indicators you can rely on to ensure you're futureproofing your decision:
- Predicted user volume increase
- Predicted cost of data storage
- Contingency plans for downtime and impact on BAU
- Support retainer and coverage
- Cost of customisation
So, what's the verdict?
By now, you should have a solid starting point for scoping out your next ERP implementation. Two things to write on a post-it note and stick to your monitor, though.
First - be wary of non-essential features and being sold a dream by vendors. If your requirements process is extensive, have confidence and stick to the list you settled on.
Second - make sure you're only involving the correct stakeholders at each stage of the project. Not everyone needs oversight all the time. Be the bridge between departments and critically assess whose time you need, and why. Everyone will thank you for it.
Want to read more from me? Subscribe to Big Red's Red Alert newsletter on LinkedIn. I guest post there regularly.