Lawrie Walters, Sydney Australia

A White Paper Summary on ERP Software – Free White Papers

As your business grows, the increasing number of employees, clients, products, services, and functions increases the complexity of organizing the data associated with each of these entities. One way to streamline system processes and data control is with the implementation of Enterprise Resource Planning (ERP) software.

ERP solutions are designed to integrate all of the data and processes within your company into a single system. A single system allows for data from one process to be used by a second process, with a single database tying the systems together.

Businesses without a central ERP system spend a lot of time performing redundant tasks, re-entering data, and reconciling duplicate data. Data entered into one system may appear different in another system. These additional tasks result in increased labour and personnel frustration. An ERP system eliminates vertical data silos in your organization, breaking down the virtual walls between departments.

One database contains all company data, and all departments pull data from the same database.

While the end results of a streamlined system include increased productivity and data availability, the prospect of selecting and integrating an ERP software solution into your business can be daunting. It is certainly a major undertaking to uproot many of your entrenched systems and train personnel to use the new system, but understanding how the ERP software system will improve your business processes and creating a strategic implementation plan will keep the end benefits in your mind and smooth the integration of the ERP software into you business.

Selecting an ERP Solution The first step in the implementation process is to select the ERP software solution that is most appropriate for your business. This requires you to determine what your goals are as a business and what you want an ERP system to do to help you achieve those goals. You need to look at the people who will be actually using the software, including which department functions will be included in the integration and how to include your personnel in the decision process. You need to determine what you want the ERP software to do for your business and to list the functions that are required for your business. Finally, you ll need to research different ERP software vendors, since each package has pros and cons that may or may not be right for your company s needs.

Determining Your Goals When researching potential ERP packages, you need to have a clear understanding of what your goals are as a business, and what you want out of an ERP software system. You need to ask yourself specific questions to determine what the precise needs of your business are. Some of these questions may include:

- What process and productivity goals are you trying to achieve through the new ERP system? One of the primary reasons for implementing an ERP system is to improve productivity across the company by streamlining how different departments are connected and how they use each other s data. Knowing the specific goals for your business will make it easier for you to select the right vendor and software package to meet your goals.

- Which departments will be most affected and should have the most say in the decision? Some companies that integrate ERP software into their business only focus on specific departments within their business, such as accounting and payroll. Others want a system-wide package that will impact all departments. Knowing which departments will be affected will allow you to build a planning and implementation team with representatives from all of the affected departments.

- How will you determine success? What are the success metrics? Within what timeframe should it be implemented? It will be impossible to achieve success if you do not know what success means to your business. Knowing the metrics that you want to monitor will allow you to manage the implementation process to ensure that success is met. Your business goals are the direct driver behind selecting an ERP software solution.

If a certain system will not help you directly achieve your goals, then any investment in that system is wasted money.

On the other hand, you may discover through this goal evaluation process that an ERP solution is not the right solution for your company at this time. An ERP software system is a significant investment in time and resources, and committing to this sort of investment for the sole reason that other businesses like yours are making this investment is not a logical conclusion. Your goal at this point may be to find the right ERP solution for your business, but it is important to keep an open mind. You should not invest in such a wide-reaching system if your business could be better served through process improvements or a redesign of your organizational structure.

Before you embark on the ERP planning process, it is useful to perform a process study on the existing functions within your business. This evaluation will act as a baseline from which you can evaluate potential improvements during the ERP planning process and actual improvements after the ERP system integration.

Evaluating the Vendor Landscape

With your requirements list in hand, you can now begin to research potential products that meet your requirements and vendors that can help your business achieve its goals. But where do you start?

A good starting point for evaluating potential ERP system vendors is not the vendors themselves, but independent research organizations who have examined the marketplace and have unbiased opinions on different vendors. Forrester Research and Gartner Research are two examples of independent market research firms who provide insight and advice to companies on a variety of technology and business topics.

With your requirements list in hand, review the data on as many different vendors as you can. Take note of potential matches as you go, and you will end up with a “short list” of vendors that at first glance meet the needs of your business. Once you have developed a short list of vendors, now is the time for more in depth examination of each vendor. Some potential questions to be answered include:

- What is their experience in your industry? – What local support do they provide? – How well funded are they? – How long have they been in existence? – What future developments do they have planned for the system?

While your company could theoretically mix and match modules from different vendors to create an “ideal” solution for your specific business needs, this concept provides additional headaches in terms of multiple phone numbers and contacts for support and sales, and non-compatibility between modules of differing vendors.

Having one vendor supply a complete solution eliminates these problems, giving you a single point of contact and a seamless application across your business. It also avoids the problem of blamestorming amongst multiple vendors when a problems does occur.

As with any large investment, you should have several potential vendors and software platforms on your short list, rather than placing your faith in one or two packages. Investing up front in quality background research will ensure that you find the right vendor, the right software, and the right system configuration for your specific business, industry, and requirements.

The installation and integration of an ERP software system is a significant decision on the part of a company, and a significant commitment of time, personnel, and funding. Choosing the right ERP system for your business can be simplified if you have a good understanding of your requirements, research available ERP software packages, and perform due diligence, asking potential vendors the right questions.

In a nutshell, your preparation for selecting an ERP software system should include: – Clarifying your business goals – Creating an ERP implementation team – Determining your system requirements – Examining the vendor landscape and create a short list – Performing due diligence of potential vendors and software options and performance – Creating a detailed implementation plan to include training, integration, analysis of success metrics, and post-implementation support. – Planning for post-implementation hurdles such as short-term productivity loss while your team negotiates the system learning curve After your preparation is complete, you should have extensive knowledge of the ERP market and be ready to move forward and select a vendor to implement the right ERP solution for your business.

This article is based on an ERP White Paper provided by Ridge Consulting, a Software Marketing Company. Ridge Consulting is focused on helping software companies generate new business in Europe and North America.

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