How to review the need for an ERP system
In this blog we provide a simple checklist to help you scope your requirements and clearly demonstrate the upside.
17 November, 2021 by
How to review the need for an ERP system
Smart Information Technologies Limited, Barry Bullen

Nearly all manufacturing and assembly businesses could benefit from an ERP system. The productivity increases often make implementation a no-brainer. But if you’re building a business case for upper management, it helps to know how to review the need for an ERP system. In this blog we provide a simple checklist to help you scope your requirements and clearly demonstrate the upside.

ERP system basics

Implementing an enterprise resource planning (ERP) solution is an involved and costly undertaking for many businesses. So, it’s understandable that you’d want to complete a comprehensive due diligence process beforehand. This process will help you to weigh the strengths, and limitations of various ERP solutions available in the market, as well as identify the company requirements for the right ERP software. It’s only rational to say that companies need to put in extreme due diligence during the ERP evaluation process to ensure they choose a system that offers features/functions they need. Obviously, failing to do so and the subsequent implementation failing is a waste of money, time, and human effort. If you make the wrong choice, it can damage business growth, cause team distress and limit operational capacity long-term. Lastly, the ERP system you choose without proper review may cost more to operate in the long run and very quickly become plagued with service issues. So, how do you ensure your future ERP is a great fit for your business?

Benefits of an ERP

Selecting the right solution and rolling it out successfully can mean your business gains a foundation from which to: 

 

      deliver operational efficiencies,

      work collaboratively,

      reduce complexities,

      integrate systems,

      improve customer experience,

      and gain key analytical insights, which can facilitate innovation and growth.

 

The benefits to your business are vast if you make the right selection and with buy-in at all levels, adoption is likely to remain high. So, to build your business case, consider the following checklist:

ERP review checklist

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.

 

  1. Determine what reasons are driving this change

  2. Write down what business areas will benefit from ERP

  3. Map conservative goals and outcomes post-implementation

  4. Include the numbers- define your ROI & total cost of ownership (TOC)

  5. Ask for references within the industry for recommended ERP solutions

  6. Find an expert partner to manage the installation

  7. Define the implementation & training plan including team support needs

  8. Get management support & approval

It’s critical to map your needs before implementation. And once you have an ERP system in place, annual performance reviews will keep that software running at 100%. If you’d like help deploying your own ERP solution or assessing your current installation, talk to our helpful, experienced team today.

How to review the need for an ERP system
Smart Information Technologies Limited, Barry Bullen 17 November, 2021
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