At some point it just happens. The management decides to purchase a new custom software ERP system . Usually a colleague who takes care of the project can be found quickly. But which strategy is recommended for the ERP search? Practice shows that there are good and less suitable methods and therefore the software guides give five practical tips:
ERP search tip 1 - project order with time, costs, scope and risk
For a professional ERP project, these four building blocks of project management should be considered and included in the project order:
Time schedule
From the project decision to the decision for a provider, it takes an average of 2 - 6 months. It then takes another 4 - 15 months before the selected ERP system actually goes into operation. This results in a total project duration of 6 - 21 months, depending on the size of the company, industry and complexity. If you would like a more precise time estimate, please contact Software Guide.
Costs
The costs also depend heavily on complexity, industry and size. ERP providers or software pilots can specify a rough benchmark with just a few parameters. It is advisable to plan a buffer because ERP projects often overshoot the target.
Project scope
Another exciting point. It is important to consider which functions will be located in the actual project and what can be implemented at a later time. A carefully selected scope curbs the burden on colleagues and makes it easier to switch to the new ERP system.
Risk
In practice, this point is often overlooked. In the initial euphoria, who likes to think that something could go wrong? Nevertheless, there should be answers to questions such as:
What should you do if the ERP system does not work?
What happens when customers and providers take significantly longer to perform essential tasks?
ERP search tip 2 - Find the most suitable ERP system
This task is delicate because the range of ERP systems is very large. Most companies know some established ERP for their branch, which are then also looked at. However, a really broad search is often not possible because it would go beyond the time frame. That is why Software Lotse has developed a selection service that effectively solves this problem. Learn more about it.
ERP search tip 3 - go from general to special
The mistake is often made that the focus is too much on the details right from the start. It is better to use the first phase for planning and to communicate the project sufficiently. This will reduce reservations and win supporters. The frequently practiced documentation of the processes does not create any real added value because the actual processes almost always need to be optimized. It makes more sense to define the target processes together with the ERP provider and to orientate yourself as closely as possible to the processes of the selected ERP system.
ERP search tip 4 - set goals
An ERP introduction is the perfect opportunity to significantly improve the organizational level of the company. Goals are a tried and tested means of making the improvement potential tangible. Therefore, the specialist departments and the management should write down their goals.
ERP search tip 5 - observe the basic rules for ERP systems
In the IT industry and especially with ERP systems, some basic rules have emerged that should be considered from the start:
Reduce isolated solutions: islands of individual solutions often go hand in hand with increased maintenance, complex interfaces and cumbersome processes. Therefore, it should be clarified in the course of the project whether functions can be bundled in the ERP system.
Minimize adjustments: Customized programming is expensive and complicates the software's ability to update. Therefore, the choice should fall on an ERP, if possible, which already maps the essential processes in the standard. Standard processes should take precedence when defining processes.
Purchase vs. Renting or leasing: The cloud is also an issue in the ERP environment, with customers still sharing the marketing-driven enthusiasm of some providers rather cautiously. Cloud models have their advantages because, for example, only the actual number of users is charged. However, in the long run, buying is almost always cheaper. Cloud ERP has administrative advantages if the same range of functions is used by many companies. However, this has so far only been possible in exceptional cases because the degree of individualization is often very high.
Open source vs. Commercial ERP systems: Open source ERP has always been an issue in the past, but the resounding success has not yet been achieved. Software Lotse has looked at some open source ERP. There are quite attractive products, but there are also some with a lot of catching up to do in terms of their functions. By the way: Software Lotse includes providers of open source ERP in the ERP search.
To know more, click here.
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