Implementing a new cloud ERP system is not just about replacing old software; it's an opportunity for business transformation. This is the perfect time to reassess and optimize your business processes. Look for ways to streamline operations, reduce redundancies, and enhance efficiency.
According to Gartner, 75% of ERP strategies are not strongly aligned with overall business strategy, leading to confusion and lackluster results. Understanding the greater corporate strategy, how to compare solutions in the cloud world, what is to change operationally from a people and process perspective to drive business transformation, and how to strategize governance are critical in achieving success.
With so many options available, how do you drive a better process and result? Below are six how-to suggestions we have learned from our experience supporting organizations in their search for the right ERP software.
1. Understanding Your Business Needs and Objectives
Software selection is more than making a list of vendors. Findings revealed that despite 96% of buyers committing to building a vendor list before making their software purchase, 60% experienced dissatisfaction and regret their software purchase.
It’s important to understand what your stakeholders and end users need to do, so everyone is aligned with what they want to get out of the system. The conversation needs to move beyond what the software needs to do as to why you are making an investment. Is it to improve internal efficiencies, achieve synergistic savings following a merger or acquisition, lower total cost of ownership (TCO), support business expansion in new markets, or maybe all the above? Knowing what your business objectives are will help in defining the system that is right for your organization.
2. Embrace Opportunities for Transformation
Cloud systems bring best practice business processes that help your organization keep pace with innovation. Adopting processes that have already been implemented at hundreds of other organizations will allow you to focus on strategic business activities that will help drive the things that differentiate your organization.
Improving productivity, collaboration, and teamwork across the organization may give you a competitive edge and allow you to attract and keep the best talent. Cloud can scale business processes when needed and offers the flexibility to implement what you need now and other solutions in the future. A well-planned, iterative approach to implementation and emphasis on change management can substantially increase user adoption and productivity while easing the journey to the cloud.
3. Evaluate Your Other Systems in Place
During the evaluation process, look at processes and systems that are part of your current technology footprint and how they will integrate with the new solution. You may find that processes can be handled within the new system, decreasing the number of systems you need to support, while improving overall system efficiency and reporting capabilities.
If the new cloud ERP system can meet 80 percent or more of what needs to be done, and the gaps are processes not used frequently or by a smaller group, consideration needs to be given to the greater impact a consolidation solution would deliver to the organization.
Pay attention to the technical requirements and compatibility of the ERP with your current infrastructure. This will help you avoid potential disruptions and ensure that the implementation process is as seamless as possible.
4. Bring in Stakeholders from Various Departments
Since an ERP solution touches nearly every department in the organization, selecting the right cloud ERP software should be a collaborative effort including stakeholders from various departments. It is important that those involved in selecting a new platform align with the organization’s strategic vision as well as consult with those who will be impacted by a selection from end-users to senior managers.
ERP systems are typically pre-built with best practice business processes that can be leveraged in design sessions to show functional users the system and how they can achieve faster return on investment (ROI). This shift from technical to functional leadership heightens the need to ensure that functional subject matter experts (SMEs) with appropriate experience and authority to make implementation-related decisions are involved during the selection process. SMEs can also serve as the conduit between the department and project team, ensuring their business unit’s needs are well-represented in the process.
5. Consider the Technical and People Sides of Change
Cloud transformation brings significant change to how people inside the organization consume and operate technology. Transparency in decision-making and communication has a significant impact on the implementation through ongoing operations. It is important to recognize that the way work gets done will change and that team members need support in learning new processes.
Change management and training are the cornerstones for successful transformation. This can be an area of differentiation during a cloud ERP selection process. The available core team and end-user training options, pre-built job aides or inline help, and the application of artificial intelligence vary from vendor to vendor. An analysis of each vendor’s training and adoption support options in the selection process may help clarify a decision to implement a new ERP and how it is expected to deliver improvements.
6. Picking the Right Partner
Choosing the right partner is an essential part of selecting the right platform and preparing your organization for change. An organization that has done cloud implementations understands the nuances of how to select and implement the market-leading ERPs. Selecting a partner with the deep understanding of the implementation process can help evaluate the best vendor for your transformation initiative and uncover the benefits of the system for your organization during the selection process.
Avoid purchase regret and start seeing ROI quickly by ensuring you are selecting the right ERP system for your organization’s current and future needs. Get in touch to learn how Avaap has helped hundreds of organizations choose the right software for their needs.