Maximizing the Value of Your ERP Project

Are you beginning the ERP planning process? Deciding to embark on an ERP project is one of the most challenging decisions a company faces due to the constantly evolving aspects involved. This blog will guide you through the most crucial factors to consider when planning your ERP project.

How Does a Successful ERP Implementation Drive Value?

A successful ERP project drives value for companies by streamlining and automating business processes, which enhances efficiency and productivity while reducing operational costs. It centralizes data, ensuring accuracy and consistency across all departments, and provides real-time insights for better decision-making. ERP systems also offer scalability and flexibility to grow with the business, improve customer satisfaction through enhanced service and faster delivery, and facilitate better collaboration and communication. Additionally, they help ensure compliance with regulations and optimize resource utilization, ultimately fostering innovation and providing a competitive edge in the marketplace.

What Functionalities Should You Ask to View in an ERP Vendor Demo?

When evaluating ERP vendors, it is crucial to ask to view the following functionalities during a demo to ensure the system meets your business needs:

1. Core Business Processes: How does the ERP handle finance, human resources, supply chain, and/or inventory management? Make sure it can support essential functions of your business like accounts payable/receivable, payroll, procurement, order fulfillment, etc. 
2. User Interface and Experience: Does the system have an intuitive and user-friendly interface that employees can quickly adapt to? Check for ease of navigation, customization options, and overall usability.
3. Customization and Flexibility: Clearly document your specific business processes and workflows. You can share this with the vendor so they can tailor your demo to your specific needs. Ask about the ease of customizing fields, forms, reports, user roles, etc. Are these customizations something you can do internally or will you need to outsource those needs?
4. Integration Capabilities: Compile a list of all current technology being used. Is there an opportunity to consolidate technology with ERP functionality? Can the ERP easily and seamlessly integrate with existing systems and third-party applications? This includes but is not limited to CRM, e-commerce platforms, and other essential tools.
5. Scalability: This goes hand-in-hand with customization and flexibility. A good ERP system can help you grow your business fast. Ask your ERP vendors how they handle increasing data volume, additional users, and expanding operational requirements or changes in process.
6. Reporting and Analytics: What KPIs or industry standards is your team held too? What reports or data will help you make sound business decisions and determine success or room for improvement? Ask your ERP vendor how customizable their reporting capabilities are. Ensure the system provides comprehensive, real-time insights and custom reports.
7. Mobile Accessibility (Cloud-Based Solution): If your business allows it, a cloud-based solution can really help streamline your business and boost productivity. After the pandemic many businesses realized the importance of cloud solutions that allow them to be nimble and flexible in the face of uncertainty. Ask about the availability of mobile apps and features/ease of use for on-the-go access.
8. Workflow Automation: Evaluate the ERP systems’ ability to streamline processes such as approvals, notifications, and document management. In order to stay competitive in the marketplace it is important to stay current with AI and automation workflows so you can spend more time on the business.
9. Security Features: Find out what security measures are in place to protect sensitive data. Ask to see role-based access control and find out if the system offers encryption and is compliant with industry standards.
10. Support and Training: Lastly, what does the vendor offer in terms of support services and training resources? What on-going resources are available to you even after the initial implementation? You want to work with a vendor who can be a partner and on-going available resource. Additionally, find out what the vendor offers regarding education on new features and best practices as technology evolves. You don’t know what you don’t know so it is important to work with a trusted partner who cares about your business beyond implementation, always looking for ways to optimize your system.

As a suggestion, you may want to create (or engage an ERP consultant) to help you create a matrix to score and evaluate these different functions and elements as it relates to your business. Getting a strong understanding of these capabilities and ERP functions from your ERP vendors will help you assess which systems align with your business requirements and will supports your strategic goals.

Cloud ERP Systems

As previously mentioned above, in recent years the need for cloud-based systems is imperative if you want a flexible business that can run anywhere and everywhere at any time. Specifically, a Cloud ERP system offers numerous advantages, including cost-efficiency through reduced upfront investment in hardware and maintenance. Additionally, Cloud ERP systems provide enhanced accessibility, allowing your team to access critical business data from anywhere with an internet connection, thereby facilitating remote work and collaboration. Scalability is another crucial aspect as noted above, so that you are able to easily adapt to your company’s growing needs without requiring significant infrastructure changes.

Cloud ERP systems offer automatic updates, ensuring that your software is always up-to-date with the latest features and security patches without interrupting your business operations.

Lastly, recognize the importance of security in Cloud ERP, as reputable providers implement robust security measures and compliance standards to protect your sensitive business data. By considering these factors, you can make an informed decision about whether Cloud ERP is the right solution for your company’s needs.

Estimating costs for your new ERP

Estimating costs for a new ERP system involves several considerations to ensure an accurate budget.

Evaluate licensing fees, which can vary based on the vendor and deployment model (cloud vs. on-site) and may be subscription-based or require a one-time payment.

Next, account for implementation costs, including consulting fees, customization, data migration, and employee training expenses.

Additionally, factor in ongoing maintenance and support costs, which may be annual fees or charged on a per-user basis.

If opting for an on-premise solution, consider hardware costs for servers, storage, and networking equipment. Integration costs should also be accounted for, as you may need to integrate the ERP with existing systems and third-party applications.

By considering these factors comprehensively, you can develop a realistic estimate of the total costs associated with implementing a new ERP system.

Ready to transform your business with the right ERP system? Contact ProNexus today for a complimentary consultation with one of our ERP experts. Not ready to chat? Download our guide, How to Choose an ERP System, to get started on your journey. Let's optimize your business together!

ADDITIONAL RESOURCES

• LOOKING BEYOND QUICKBOOKS

• ERP SYSTEM MODERNIZATION ASSESSMENT

• HOW TO DRIVE PROFITABILITY WITH LIMITED RESOURCES (FREE GUIDE)