How to review the need for an ERP system
Enterprise Resource Planning (ERP) is a way to oversee all of your business resources and processes in a single platform or dashboard. ERP uses software and technology to make the admin and management of resources easier, more efficient and ultimately boost productivity.
But how can you assess the need for an ERP system in your own operations? Before you make any such investment, you’ll probably want or need to accurately predict the return on investment, in order to convince company directors and shareholders.
A persuasive business case for installing an ERP system can also help to encourage engagement from senior-level managers who will be asked to use the platform. So it’s worth making a compelling case.
You can do this by compiling a comprehensive plan that shows how ERP will help your organisation and why you believe it is necessary. This document can be retained so that once your new ERP system is implemented, you can refer back to your original goals.
Five steps to assess the need for ERP systems
Reviewing the need for an ERP system should be a scientific process based on concrete evidence from your current operating procedures. You can summarise this in a ‘vision statement’ at the end, if you want to set a more general end-goal for the initiative.
It’s good to adopt a five-step approach to assessing the need for ERP systems, as this will help to ensure your analysis is rigorous while breaking it into manageable stages.
- Identify current challenges and reasons for change
- Detail which areas can benefit most from ERP
- Set realistic aims and outcomes to be achieved
- Conduct cost-benefit analysis to forecast ROI
- Estimate resources required for ERP implementation
The sixth and final stage is to choose an ERP partner who can deliver on your stated aims and help you to achieve the loftiest ambitions in your vision statement.
All too often, ERP implementation fails due to a lack of rigorous planning, a misguided belief that ERP is a one-time installation rather than an ongoing procedural change, or simply due to choosing the wrong ERP partner for your organisation.
How to choose an ERP partner for success
The strongest business case for ERP still requires the right provider to help it succeed. That’s because the experience and expertise needed for successful implementation typically comes from the ERP partner, rather than in-house.
A good starting point is to look for an ERP partner with experience of your specific industry or sector. Case studies and client testimonials can help you to identify ERP providers with a strong track record of success.
Having positive reviews and case studies from your particular market niche is a good sign that the ERP partner will have encountered any likely obstacles before and has succeeded in overcoming them in the past.
If you’re looking for an ERP partner with a proven track record across many different sectors and niche markets, contact APH today. We’ll be happy to arrange a free initial consultation where we can discuss the value of ERP as a way to optimise your business resources.