Screen Shot 2022-02-16 at 3.39.03 PM

The Modern Rules of Healthcare ERP System Selection

Healthcare providers relying on a legacy ERP system to work in today’s digitally innovative landscape are no longer able to keep up with the growing demands of modern healthcare organizations. ERP systems touch nearly every department, serving as the heart and soul of the business. Transformation can be costly, but it is more expensive to stick with legacy systems that do not meet current business needs or have the ability to adapt to the ever-changing nature of healthcare.

One of the challenges with digital transformation in healthcare is the small number of providers that have reached infrastructure maturity and connecting with customers who have travelled the same path and understand the risks and rewards of implementing new technology. We compiled the considerations and guidelines healthcare leaders find important when undergoing an ERP system selection.

Find Your Fit

There is no one-size-fits-all solution. While there are benefits to an ERP system specialized to your industry, the cloud eliminates the need for costly customizations that require specialized skills to manage. Some vendors have updated their platform to be delivered in the cloud whereas others are built for cloud from the ground up. Use feedback from industry experts like Gartner and KLAS to see decision insights and how other healthcare organizations have fared in their projects.

If your provider organization is moving from an on-premises system to the cloud, don’t feel obligated to stick with your current vendor. Whether you plan to move to a new vendor or stay with your incumbent, the project is more like a new implementation versus an upgrade, and if you are making the effort to modernize, ensure you are not bringing bad processes into the new system or making a decision based on familiarity. If you have reached the point where your current on-premises system is unable to keep up with your needs, explore and compare the new capabilities cloud systems include, and whether the ERP will be able to scale with your business.

Commit to Change

In addition to the right technology fit, also focus on your organization’s readiness for change. Although change readiness is such a large factor in project success, historically, change management is the first line item to be cut during contract negotiations. Organizations without change management as part of the project are more likely to struggle due to low engagement, not understanding why change is needed, or how it will improve their work experience. It is important to view helping people navigate change and new ways of working as critical for sustainable success. Good change management is not an add-on activity and instead change management should be baked into the project plan to allow for proper awareness and communication. When change management is delivered at the right stages and time, it allows team members the proper time to absorb the change and how it will affect them.

Powerful Partnerships Prevail

Healthcare leaders new to cloud ERP selection should be able to count on their selection partner to help with negotiations and contracting. In addition to choosing a partner with deep industry knowledge and proven experience with all possible ERP solutions, you will want to partner with an experience selection team with a track record of success who will ensure you select the right solution, negotiate the best possible contract, have the right governance, and apply leading practices and risk mitigation.

KLAS research reports consistently show that the success of an ERP selection and eventual implementation might depend more on the partner than on the actual software implemented. With more health systems purchasing ERP, there is greater need for partners who can help healthcare organizations implement the technology and oversee the significant change management and training required to be fully successful.

Thinking about starting your ERP system selection journey? Watch our on-demand session to learn more tips and tricks to system selection success: A Fresh Perspective on ERP System Selection.