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.
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