If you want to build an ERP system and looking for a guide that provides a strategy for ERP development than you came in the right place. In this article you will see how to build a strategy for ERP development, common mistakes businesses do while implementing ERP, and our client success story.
When developing an ERP strategy, there are many factors to take into consideration depending on the type of business, the size of the organization, and the purpose of the initiative. Regardless of the particular circumstances, an ERP strategy must consider some key points.
One of the most important things companies can do is their planning for implementing its strategy to really get executive sponsorship and truly understand the scope of what the project is that they’re looking at?
ERPs when effectively implemented can really have a tremendous effect on a company’s efficiencies and revenue and bottom line, so companies really need to strive for executive sponsorship from the top down and truly implement a plan that reflective of what cost may be occurred and what resources may be affected internally in order to execute the project.
what is an erp strategy
ne major thing that companies need to take effect when putting in an ERP strategy is to recognize that it’s not only its initiative, but it really is a companywide initiative.
Getting executive sponsorship and then sponsorship from all across functional areas department leads, subject matter experts along with it resources are going to be the basics of implementing an ERP strategy.
Things to keep in minds while building a strategy for ERP development
1) Create a List of Implementation Goals
Before you decide to build an ERP system, you need to clear about what is the implantation goals that you want to achieve. Be specific about your goals and then start to develop an ERP system. A clear goal leads to potential software features and effective tools.
2) Develop a budget for ERP development
Much new software initiative fails because of a lack of financial planning. It’s important to decide on a budget before going to make an ERP system. You don’t need to plan a fully function ERP if you don’t have a budget, you can opt for the most essential feature.
3) Note down a list of key business processes with input from stakeholders
This component requires sitting with your employees who work across various departments. It’s likely that you haven’t worked in all of the departments, so you need to speak with applicable employees and note down all the important terms and strategies.
4) Think about your desired deployment method
The desired deployment method requires purchasing cloud ERP software or an on-premise solution. once you decide which method is best suited to your companies requirement, talk with vendors.
5) Plan and allocate training resources
ERP system requires proper training for the employee. Training improves the productivity of the employee and works faster than ever. If possible train your team with IT experts.
6) Select a vendor
Now that you’ve done all the preparation, it’s time to decide vendors. Make sure that you keep all the applicable documents and information nearby when you’re looking at provides.
When implementing ERP strategies companies all too often underestimate the actual timeframe that the project is going to take from requirements definition, software selection, business process improvement, even down to contract negotiation and implementation planning. Companies really don’t understand the full amount of time and resources internally that it may take to successfully accomplish this strategy.
Some of the common mistake companies seen when not implementing an ERP system is really not involving their vendor or their bar or even a third-party consulting firm as much as necessary.
Companies think that they can take on ERP initiatives and implementation by themselves. Usually, they just don’t have the time or resources internally to effectively do the project.
When implementing new ERP system companies can realize more benefits by really emphasizing and tracking measuring what they anticipate do. Companies need to document all opportunities for improvement, and what we do is we look at the time associated with those improvements. We look at cost savings and gain efficiencies through those.
This business case in this business process improvement benefit realization is really a living breathing entity and certainly needs to be addressed and tracked and discussed either on a weekly basis and or a monthly basis.
A success story
We recently had an apparel manufacturer go through the ERP selection and implantation process. It was very successful for many reasons but mainly because of the ERP strategy put in place early.
The strategy was fully definitive and very comprehensive and the main goad behind the ERP implementation was to grow and expand the business using technology and limiting the amount of additional human capital that was needed to implement these practices.
Whenever this company faced difficulty or challenges during the selection and implementation process, they constantly refer back to the ERP strategy and the foundation of that strategy and the goals of the new ERP were to help the company grow by technology and not by human capital.
Every challenge they faced they would go back and reconcile that with the initial strategy and plan and that really led them to keep a focus on the end means no matter what had happened in the middle.
This company saw a lot of executive turnover and even turnover at the management level and each of these managers and new c-level positions was constantly going back to the ERP strategy that had been put together by board members and that was their focal point. That’s what guided them through a successful implementation.
ERP system is a great way to integrate all the department stuff in one place and keep tracking and majoring on employee work. Nowadays, every company or organization needs an ERP system for better financial management.
If you want to build your own ERP system with a custom solution and looking for a company to rely on, you can drop a line to our expert team. Our tech-savvy team will provide a solution with FREE project estimation.