Tag Archives: ERP implementation

How to successfully manage change during your ERP implementation

Getting people onboard with the new ways of working enabled by a new ERP solution requires change management: here are our tips for more effective change initiatives.

They are two key elements to managing change when it comes to introducing a new Enterprise Resource Planning (ERP) solution into your business: the practical implications of new tools and processes, and people’s behaviours and attitudes.

We’ve written in the past about the importance of effective project management to ensure your ERP implementation happens successfully:

Internal project management helps steer and improve decision-making during the ERP solution implementation process, working collaboratively with your implementation partner.
The commitment of leaders and skill of project managers can ‘make or break’ your project.
A poorly scoped project, lack of internal resources and support are key reasons that ERP solution implementations fail.

Project management and change management are two different processes, but they often occur in tandem and may have many areas of overlap.

The project work—in this case executing a new enterprise solution—is characterised by a focus on tasks and processes required to set-up the software, re-engineer processes, and train your team in how to use the solution. Change management focuses on engaging and informing people affected by the project to ensure the transition is a smooth and sustainable one.

Change is hard: it requires planning, resources, and communication

Change requires taking people out of their comfort zone. Some people will be open to change and others less so, but with a well-planned approach, it is possible to create an atmosphere of excitement rather than trepidation.

You want employees to use your new ERP software solution correctly, but also to proactively embrace the intent of working smarter and more productively, sharing and leveraging data to make decisions, and using your ERP system to identify and act on new opportunities.

Remember to communicate the reasons behind the change and the broader business benefits that the new system brings, not only ‘what’ is happening. Communicate both factual information and key messages repeatedly—assume that not everyone will see every piece of communication or digest it fully the first time.

Factors that contribute to change management success include:

Involving your team: The people most affected by the change should be involved in deciding what tools and information will help them work through disruption. A top-down approach won’t fully capture the day-to-day concerns and needs of frontline staff.
Strategy first, then tactics: Define what success looks like first, identify and involve all the relevant stakeholders, and then plan and implement the events, documents, and communications that will help you achieve your strategy.
Understand the lifecycle of change: Recognise that change management doesn’t necessarily end when an ERP implementation project is finished. Check in on how people feel and adjust timelines and activities accordingly.
Leadership participation: Even though you may appoint a person to manage the change initiative, visible and active sponsorship by your C-suite is essential. When leaders use their influence to generate enthusiasm for the desired future state, it’s easier to overcome resistance and concern.
Take a phased approach to ERP implementation: Avoid the pitfalls associated with multiple changes in your organisation and phase your ERP implementation so that employees can adapt to the new system, learn, gain confidence, see benefits and then get ready for the next phase of improvements.
Confidence is important: Ensure that team members have the confidence to embrace change, voice their opinions and want to make a difference. Get team members excited about the project and the expected outcomes.
Communicate regularly: Keep team members updated on new initiatives, project progress, updates, and solutions.

Is it time to embrace a more continuous approach to change for business growth?

Whether you’re moving from paper-based records, replacing a legacy ERP system, or stepping up from basic accounting software, your new ERP solution is a big shift. But if you’re serious about gaining a competitive advantage in the digital economy, the changes won’t stop there.

Modern ERP systems are built with flexibility and growth in mind—allowing businesses to add new functionality as needed or take advantage of emerging technologies like IoT.

Writing for Forbes, Bain and Company consultant David Michels said, “Traditional change management as we know it is obsolete. Even the very notion that change can be managed feels absurd given the reality and pace of business today.”

He argues that managing change is now a continuous activity and must become a fundamental part of how you lead, engage, and develop employees—giving your team the confidence and know-how to readily adapt to technological advances or new workflows.

Technology is a facilitator: a tool that makes different approaches and insights possible. The true power of your ERP solution—and other business tools—is realised by people. It pays to foster more adaptable and skilled employees that are motivated to leverage your systems to deliver business improvements.

Looking for guidance during your ERP solution implementation? Our team has decades of experience, hundreds of successful projects, and many satisfied clients behind us. Call 1300 045 046 or email [email protected].

Why your internal “ERP champion” matters more than you realise

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We reveal why the leadership of your ERP solution implementation internally can ‘make or break’ your project’s success.

Well-regarded ERP industry analysts Mint Jutras recently surveyed more than 300 manufacturers and distributors from midsized to large companies about their ERP implementations. The report revealed high rates of failure are a myth but many are leaving potential benefits and ROI unrealised.

What was the most important factor that contributed to ERP implementation success? It wasn’t the software choice. It was the support and commitment of senior leaders (62%) and effective change management within the organisation (48%).

On the flip side, poor quality testing and inadequate business process re-engineering were the top reasons cited for lack of success.

These results do not indicate that the ERP solution you use is inconsequential. Technology is a tool, and selecting the right software is critical. But it’s only half the solution and it’s not usually the limiting factor when it comes to benefitting from greater visibility, automation, and analytics.

People and processes involved in the implementation are more likely to hold you back and can be hard to coordinate effectively. People and processes ensure that your new solution is implemented, configured and adopted by your team through a process of implementation and change management.

To make that happen your business must dedicate internal resources and managerial support to the ERP implementation and change management process.

What kind of internal resources are needed to implement an ERP solution?

A reliable and experienced ERP implementation partner, like Leverage Technologies, is there to guide you through every step of your implementation.

However, high levels of internal commitment and organisation make it easier for your partner to assist you, and the less likely your project is to veer off-track.

The factors a business should focus on to support a successful ERP implementation include:

Well-documented processes and functional needs.
Accurate data and data conversion requirements for the new system.
People with the skills and availability to support each stage of the process.
Sufficient time allowed for each stage of the implementation to be finalised.
High-level sponsorship and accountability from C-level executives.

When we sit down with a business to begin the implementation process and they can show us clear process diagrams, we can tell they’ve thought about how their new ERP can be applied to deliver improvements. We can build on those ideas based on our expert understanding of the ERP solution—it’s a true partnership approach.

Of course, it’s not possible to introduce a new system that will be used and relied on by your team, without the input of your team. Your team’s involvement is required to:

Participate in workshops and brainstorms to clarify what’s important to the business.
Articulate tasks and workflows for each functional area so your provider can automate them.
Reconcile and clean-up data from multiple sources to ensure it’s ready for the new ERP solution.
Conduct other data collection activities like an accurate stock take or update the asset register prior to go-live, ensuring accurate data for the new ERP solution.
Identify and act as ‘super users’ that can be involved in training and supporting others.
Test specific functionalities by generating reports and other documents as part of user acceptance testing.

As well as people who are ready and willing to engage in each of those activities, it’s important to create a project management position or team that provides overarching direction within the business.

[FEATURE ARTICLE – 8 Reasons you need internal ‘muscle’ to implement an ERP solution]

When and how to appoint an ERP implementation project manager

A strong and savvy internal project manager will make a big difference in your ability to implement your new ERP solution on time and within budget. They set realistic expectations, manage project tasks, and provide an interface to the business for your ERP implementation partner.

Decide early about the allocation of resources to project management. A full or part-time resource sitting within your team to manage the project affects the costs, timing, and methodology of the implementation. Ask your reseller how the appointment of an internal project manager can expedite the implementation process and lead to better outcomes.

Because executive buy-in is so critical, it makes sense for a senior leader to champion the project, and choose and supervise a suitable project manager.

Your implementation partner can’t be privy to all the internal activities, time pressures, and machinations that may negatively influence the progress of your implementation project. Your project manager should be. They should have the skill and standing required to get answers, resolve issues, and generally keep the project on an even keel.

You might appoint a person/people specifically to run the project for a set length of time. Or you could choose existing team members to step out of—or expand—their day-to-day roles. The appointment of a full time or part time internal project manager will depend on the scale and complexity of the project and the timelines defined.

The skill set required of your internal project manager will vary somewhat based on the complexity of the project. For smaller, less complex projects, the project manager will need to be very hands-on—with the technical skill set to assist with data uploads, user training and setting up super users. With larger, more complex projects, the internal project manager will need to be more focused on the task of project, timeline and resource management – a less hands-on role.

Looking for an experienced ERP provider that can help you prepare for a successful implementation? Talk to an expert Leverage Technologies consultant today.

Should You Start Thinking Bigger? Discover The 7 ERP Readiness Signals

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The aim of this post is to highlight the sorts of indicators that may lead a company to consider looking at installing an ERP system. These are the “7 ERP readiness signals” to look out for.

There is a certain percentage of small companies that end up becoming larger companies with more complex operating environments. If this is the case with your organisation then it may be the case that your current accounting system may no longer be the right system to help you achieve your business objectives.

It’s at this stage that you might want to consider looking at an Enterprise Resource Planning (ERP) system.

1. Data File Too Large/Large Number of Concurrent Users

Once the data file of a server-based small business accounting system becomes too large, the operation of the system can slow down considerably or even start crashing. This leads to user frustration as it takes them longer to complete routine tasks and lost productivity if the system needs to reboot. Similarly, once more and more users start accessing a small business accounting package its performance will start to slow leading to user frustration and lost productivity.

ERP systems are underpinned by a scalable database (usually SQL) and do not suffer from these limitations.

2. Large Inventory List/More Complex Inventory Handling Requirements

Once a company’s inventory list has become a certain size it will affect the running speed of small business accounting packages. In addition, companies tend to require more complex inventory handling procedures as their inventory list grows.

ERP systems are able to perform key inventory processes such as barcoding, serial number tracking, batch processing, automatic re-ordering; and cater for inventory sub-items, multiple pricing levels, multiple bins and multiple warehouses; features not available (or only available in a limited capacity) in small business accounting packages.

[FEATURED ARTICLE – How to choose the best ERP solution: A guide for Small to Medium size Business]

3. Disparate Systems/No Single Source of Truth

As companies grow they will tend to add additional software packages (such as CRM systems, Warehouse Management Systems etc) to their business to perform specific tasks. This can lead to what’s known as the “hairball” effect where there are several disparate systems requiring data to be double-entered (into one system and then also into the accounting system) and there being no acknowledged source of data truth.

ERP systems will combine many of the functions performed by disparate systems into an integrated whole-of-business system, eliminating the need to double enter data. The database underpinning the ERP system will also act as a single source of truth.

4. Reporting Done on Spreadsheets

One of the unpleasant side effects having disparate software systems is that it means that customers are quite often forced to resort to collating data on spreadsheets to report on various aspects of their business. Not only is this process time consuming but it is also prone to human error.

ERP systems have a comprehensive list of pre-built reports and also come with report writers which give customers the ability to produce custom reports so that they can report on any aspect of their business.

[FEATURED ARTICLE – Template ERP requirements: Defining your implementation checklist]

5. Multiple Offices

Small business accounting systems have been developed to cater for small businesses – which are usually single office entities. Once a business grows to take on multiple sites, collating data from these sites can be problematic for such systems.

ERP systems have been designed to cater for multiple offices and can consolidate the data from each of these offices for reporting purposes.

6. Dealing with Foreign Currencies/Overseas Suppliers

Foreign currency management tends not to be a feature of small business accounting systems necessitating the use of spreadsheets on the side for data manipulation and then double entry back into the accounting system. Similarly, importing goods from overseas mean that landed costs need to be accounted for which aren’t a standard feature of small business accounting systems.

ERP systems have in-built foreign currency and landed costs functionality.

[NOW READ – ERP Budgeting: How much should I spend on ERP implementation?]

7. Jobbing/Project Management

Any sort of jobbing or project management requirement that necessitates the use of budgets; resource allocation, scheduling and tracking; sub-contracting, progress invoicing or timesheeting will not be able to be catered to by small business accounting systems.

Most ERP systems have job costing or project management modules which can cater to these requirements.

Leverage Technologies has a range of ERP solutions that cater to growing Australian businesses. For further information on any of these solutions please call us on 1300 045 046 or email [email protected] today.

A beginner’s guide to choosing the wrong ERP software in 5 steps

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We often write about Enterprise Resource Planning solutions and what businesses should be looking for in terms of budget, functional fit and other technical aspects.

After having implemented ERP software for more than 250 businesses we can surely say that choosing an ERP software solution requires a strict process, clear team responsibilities and the expertise of a trusted third-party advisor.

But what if you are at your first attempt and want to speed up the ERP selection process? What are the risks that you should be aware of to avoid implementing the wrong solution?

In today’s article, we give an overview of what (from our experience) typically leads businesses to implement the wrong ERP software solutions.

#1 – Overlooking the “ERP readiness” signals

The first (and easiest) way to start your journey to a new ERP software solution with the wrong foot, is to delay your ERP implementation. Not implementing an ERP software when the time comes can be a costly exercise for the whole business.

In the article “6 ERP readiness signs growing businesses are likely to encounter”, we identify the main readiness signals as:

Your business has outgrown the current accounting software;
Your business is using too many manual workarounds;
The current solution is running too slow;
Your capabilities to expand a geographic expansion are limited;
You need new tools (eCommerce, EDI, AP Automation,…);
You need better reporting (“A single source of truth”).

When these six signals start showing themselves in your business, it’s time to start looking at a new ERP software solution.

#2 – Not defining your technical requirements (In details!)

ERP requirements should be defined prior to commencing any research and selection process. The requirements list should come from every department and area of the business including finance, warehouse, logistics, manufacturing and customer service to name a few.

The requirements list should define the purpose and goals of the new system and answer the question – “how does the perfect environment look for my various departments and for us as a business?”.

It is vitally important to structure the ERP selection process according to your requirements list to ensure success in the short, medium and long-term.

Businesses that don’t have a clear idea of what the new ERP system should possess are likely to encounter a number of challenges post-implementation.

Our advise is for you to take enough time to write a requirements checklist for the new system or to work with an experienced ERP provider to guide you through the process.

#3 – Not considering Cloud Vs On-Premise

Cloud ERP or On-Premise ERP? If you haven’t asked yourself this question, you probably should. ERP software solutions are rapidly shifting to a Cloud deployment model for several reasons – cost-effective implementation, fully managed and maintained, low OPEX, enterprise-grade security, and more. On the other side, an On-Premise ERP setup means that you have to implement and maintain the technology environment to host the software.

There is no right or wrong answer when choosing between the two. However, you should be aware of the advantages and disadvantages that these solutions present. Ultimately, you should look beyond the 5-year ROI to truly understand the benefits that one setup will give you over another.

#4 – Overlooking to capabilities of a modern ERP

Think about your new ERP software as an enabler, rather than a cost centre. New technologies available to businesses of all industries and sizes mean that you can unlock further efficiencies for your business.

Large high-tech companies are already pioneering disruptive technologies, so you don’t have to. Big Data, Artificial Intelligence, IoT, Customer Experience Platforms to name a few. When choosing a new ERP software, keep in mind these new technologies.

#5 – Not defining your budgetary requirements

How much should you spend on your ERP implementation? Have a rough idea of the budget available to the implementation of a new ERP for your business. This will help you narrow down your research and avoid wasting time researching the wrong solutions.

The budget is a critical part of any ERP implementation; it should be discussed internally and with your third-party provider upfront in order to set the right expectations.

Conclusion

At Leverage Technologies, we have implemented ERP software for more than 250 Australian businesses since 2005.

Over the years, we have developed a deep understanding of how different ERP solutions serve the needs of various businesses, from any industries and size.

For more information or to start your journey to a new ERP software solution, call us on 1300 045 046 for a no-obligation consultation or email [email protected].

Interpreting ERP Investment Proposals: Are You Comparing Apples With Apples?

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ERP investment proposals can vary greatly even for the same project.

If your business is considering implementing an Enterprise Resource Planning (ERP) solution you might be wondering why there is such a substantial difference in price between the ERP investment proposals provided by different companies.

After all, your business’ requirements are unique and clearly defined. So, where exactly does the difference in price come from?

Here is our advice on understanding the differences between ERP investment proposals from various solution providers so to always compare apples for apples when it comes choosing the best fit for your business.

Receiving the perfect ERP investment proposals: It all starts with your requirements

First of all, it is highly likely that you will be considering multiple different ERP solutions and possibly different providers, including resellers and implementation partners of the same solution. Analysing different solutions gives you the ability to compare what’s available on the market:

Cloud vs On-premise;
Different user interfaces, look and feel;
Generic vs best of breed solutions;
Different functional solutions;
Alternative implementation and support options;

Let’s explore the key reasons why you might get very different proposals, at very different price points from alternative ERP solution providers.

#1. Are you comparing similar ERP Solutions?

ERP Solutions vary greatly in complexity and functional “footprint”. The more functional the ERP solution the longer and more expensive (consultancy) will be to implement the solution. Greater “standard” functionality is a double-edged sword – more functionality to use and more to implement.

More functionality requiring implementation will stretch out the time to deliver and will cost more in consultancy dollars to get the job done. Generally speaking, ERP solutions are available in tier one, tier two and tier three markets. Make sure that the solutions you are comparing are fit for purpose (there is a strong functional footprint that aligns closely with your requirements).

If you are not comparing similar solutions you are likely to see a substantial difference in investment required. This is particularly true of implementation pricing which varies vastly between tier one (Enterprise Solutions for large multi-national organizations), tier two (Mid-market ERP) and tier three solutions aimed at smaller businesses. We are often contacted by companies comparing five different ERP solutions, two from the mid-market (tier two) space and three from the small end of the market. This is not comparing “apples with apples”. In summary – when comparing investment summaries make sure that you are comparing ERP Solutions from the same “tier”.

#2. Implementation methodologies vary greatly

Is the ERP implementation partner offering a fixed price or a “do and charge” implementation? These two different approaches will yield quite different investment requirements. A waterfall approach assumes a fixed scope / fixed price implementation. An agile methodology is a “fits like a glove” build and consult on an “open budget” basis. Two very different approaches that will yield two very different budgets and ERP investment proposals.

#3 Assumptions are being made

When providing a proposal for the implementation of ERP solutions, your implementation partner has to make certain assumptions which will affect the ERP investment proposal.

Some examples of such assumptions include:

Availability of internal IT resources;
Current data formats and the “state” of current data from legacy systems;
Internal (company) project management resource;
Technical experience of team members;
Functional requirements (even after a scope of works there can be some areas that are not 100% clear).

How do the assumptions that your implementation partner makes affect your ERP investment proposal? Let’s use data conversion as an example. Data will need to be exported from legacy systems into your new ERP solution. In theory, this is straightforward:

Extract data from legacy solutions;
Put the data into Excel or Excel type templates for “checking”;
Use technical data upload routines within the ERP application to upload data and run data integrity checks;
Reconcile the data for accuracy.

Sounds easy and it can be. But, data transfers can also be complicated and affect the pricing of your ERP project. Factors which can have an effect on the consultancy time needed to upload data from legacy systems include:

Number of data sources;
Availability of internal technical expertise;
Status of legacy data (how “clean” is the data);
Are internal resources available for data checking and reconciliation?
How well has data been maintained?
How well do staff members understand the data?
Data volumes;
Data transfer requirements – for legal reasons (for example warranty or traceability requirements).

The answers to each of these questions will have a substantial impact on ERP implementation pricing. If one provider of ERP makes the wrong assumptions, they might provide a very different proposal to someone that has done their homework correctly and understands exactly what is required to convert your data.

A good ERP provider takes into account all of these factors to ensure an accurate investment proposal.

#4. Has the scope of works been correctly reviewed?

Providing an accurate implementation proposal for ERP requires an accurate assessment of scope. Two different providers might have different views on the scope of the project and can provide two very different proposals for implementation.

Conclusion

Many companies have a hard time interpreting the variance in pricing from different ERP proposals. Your ERP investment proposal can vary due to factors such as the solution being scoped, the assumptions of your implementation partners, the methodology being adopted and more.

Correctly implemented ERP solutions provide improved cash flow, increased customer satisfaction and happier team members. Evaluate potential providers and their proposals carefully to ensure that you make the right decision for your business and also make sure that your providers understand your requirements and lay the right assumptions for scoping your project.

At Leverage Technologies, we help Australian businesses find and implement the right ERP solution to grow smart. For more information or to speak to a consultant call 1300 045 046 or email [email protected].

5 ERP Replacement Signals Every Growing Business Should Look Out For

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ERP software has the ability to streamline your operations and increase productivity, no matter what the size of your organisation.

However, as your business grows, your ERP system may struggle to keep up with the increasing complexity. When this is the case, it is important to identify the ERP replacement signals as it may be time to upgrade your system or even start shopping for a completely new solution.

Here is our list of the top 5 ERP replacement signals that growing businesses should look out for

#1 You Have to Use Another Program

Enterprise Resource Planning software should provide you with the ability to keep everything within the same database. This includes everything from finances to human resources. One of the main benefits of ERP is that you have a single program as opposed to using multiple programs in order to get the job done.

If you find that you suddenly have to invest in another program because your ERP software is incapable of providing you with the desired level of functionality, it may be time to replace your existing software.

#2 The System is Slowing Down

In some instances, a system will slow down after you have entered so much data. Not all solutions are capable of dealing with big data. As a result, you will find that even the simplest tasks take longer to perform. When this happens, you may not be able to increase the speed, which means that you might not have chosen a scalable ERP solution. If this is the case, upgrading or changing solution might be the the best option to keep up with growth.

#3 It isn’t Cloud-Based

There are a number of cloud benefits. If your ERP software is housed on your server, you are limiting yourself tremendously. You won’t have access to any of the data or reports when you are on the go. If you require a financial report while you are on business travel, someone will need to run the report and email it to you. Not having data available in real-time can make it more difficult to make important decisions regarding operations.

Cloud-based solutions offer you more flexibility in the workplace.

#4 New Features are Not Present

There are a lot of companies that have grown dependent on their ERP systems. When you invest in ERP systems, you need to look at the various features that are present. It’s possible to manage your finances, HR, procurement, supply chain, and more within your system. However, if you are lacking the latest features and there is no availability to choose add-ons, you may be limiting yourself. This means that you may not be able to enjoy the level of profitability and productivity that other businesses have.

Taking the time to explore new ERP systems may be what’s needed to improve your operations and expand your technology.

#5 Integration is Poor

Consider the various processes that you use in order to keep your business up and running. Various departments should be able to integrate into your ERP system. This will involve integrating the system into your operations, allowing you to streamline everything.

It’s important to explore your ERP requirements to ensure that you choose a software solution that can improve workflow while also helping to a line of the different departments that you have. You can receive real-time information through reports, lower operational costs, as well as enhanced collaboration. However, if your integration is currently lacking, it may be time to upgrade your system to one that can provide a more consistent infrastructure as well as high user-adoption rates.

ERP is only as helpful as the system’s features allow it to be. You want to do everything you can in order to improve efficiency while reducing risk. If you pay attention to the replacement signals, you will know when it’s time to upgrade your system so that you can enjoy a greater level of functionality and begin lowering both management and operational costs.

Conclusion

As growth put additional pressure on your internal systems, your business needs to look out for the five key ERP replacement signals.

Things like islands of information, system speed and lack of functionality can translate in poor performance for your business. When the time comes, you might be presented with the options of upgrading your current system or replacing it with a new ERP software.

At Leverage Technologies, we have helped hundreds of businesses implement the right Enterprise Resource Planning to grow smart. For more information or to speak to a consultant call us on 1300 045 046 or email [email protected] today.

6 ERP Readiness Signs Growing Businesses Are Likely To Encounter

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If you are a small to medium-sized business you will no doubt have used an accounting type solution for your financials, invoicing, inventory and business reporting.

At some point in time, you will outgrow these entry-level accounting solutions and will be considering a move to a full Enterprise Resource Planning (ERP) or Business Management Solution.

In this article, we are going to reveal 6 signals that you are likely to encounter when your business is ready for an upgrade to a full ERP solution.

6 signs it’s time to upgrade to an ERP solution

Your reasons for moving to a new Business Management Solution will normally go something like this:

We have outgrown our current solution. Often a business will have purchased an entry level accounting system 5-10 years ago when the business was much smaller and when the functional requirements were straightforward. As the business grows so do the requirements and “pressure” on the accounting solution. Eventually, you will get to a point where your business has quite simply outgrown the solution – even if that solution did work well for you when your business was in start-up mode.
We are using too many manual workarounds and spreadsheets because of shortcomings within the existing software solutions. As you outgrow your current systems you will start to use more and more manual workarounds and Excel spreadsheets to get the job done. This will result in decreased productivity and manual data-entry errors.
Our current solution is running slow and becoming less reliable as we add more users and data. Entry-level solutions generally don’t offer a comprehensive database (underlying architecture). As the amount of data grows and the number of users increases these systems slow down and can become less reliable.
We want to expand geographically and need a software solution to support these growth plans. True ERP solutions are usually supported in multiple countries and offer multiple language sets. Expanding into new territories is as easy as setting up the localisation for that country.
We want new channels to market – eCommerce, EDI etc. Full ERP Solutions offer more out of the box and integrated solutions for eCommerce, EDI, AP automation and other functional requirements.
We want a single source of truth. The current systems in place have resulted in islands of information. As the business grows, so do the number of systems that you use internally, resulting in dispersed information across multiple departments and functional areas.

The challenge for most small to medium sized businesses is that the jump in investment and internal muscle to implement an ERP solution is a big leap. The next “step-up” from a basic accounting solution to an Enterprise Resource Planning solution can be daunting.

Is your business ready for an ERP software solution?

So, we have established that your business needs to upgrade to an ERP but how do you know if your business is financially and functionally ready for an ERP solution?

To know whether your business is ready to implement an ERP, you might want to answer the following three questions:

Will you get your Return on Investment (ROI)? There is no point implementing an ERP solution unless you are going to get business advantages such as improved cash flow, better customer service and shorter quote to cash timeframes. In summary, there must be a Return on Investment. Use one of the multiple mechanisms from our previous blog post to evaluate your ERP Return on Investment.
Do you have the required budget? Make sure that you have the budget allocated to effectively implement and support an ERP solution and remember – ERP solutions need budget allocated for implementation and on-going support. In one our latest blog article we assess how the “new era of Cloud-based solutions” has changed the way we pay for and utilise ERP.
Do you have the internal resource to implement ERP? Most likely the single biggest factor to consider for small businesses that have outgrown their accounting solutions. You will need to carefully evaluate your ability to implement and maintain an ERP solution. I know that you will be planning to use an ERP provider to do the implementation but remember that the ERP implementation partner will need a lot of your time to implement the solution. Your internal resource does not have to be full time allocated to the ERP implementation but does need to be available to assist with things like:
- Scope requirements;
- User training;
- Data conversion;
- User acceptance testing;
- Go live super-user support.

Conclusion

The move from entry-level accounting solutions to an ERP solution is a big step.

The rewards for those that make the successful transition to ERP are enormous. Plan correctly and your journey into ERP will be rewarding and will provide your business with the ability to grow without the growing pains.

Need help in choosing the right ERP software for your business? Our experts are here to help! Call us o 1300 045 046 or email [email protected] to get started today.