If It’s Broke, Fix It: Is Your ERP System Falling Short?

There may be numerous factors driving you to consider upgrading your ERP system or replacing it with a different vendor’s package.

- Perhaps your business model has changed significantly and your current ERP system doesn’t support your business plan.

- Maybe you’re running an older version of the software and are in desperate need of adding new features and customizations.

- Possibly your ERP system was never a good fit in the first place and you cannot afford to live with it any longer.

- Perhaps your ERP vendor no longer exists or has been acquired by a different company. Or worse yet, your vendor has fallen behind in development or become too expensive to upgrade and maintain.

Fortunately, if your ERP system is falling short, there are many different ERP offerings and vendors to consider. The ERP market has grown to include a variety of solutions and delivery methods, giving today’s companies greater choice when it comes to selecting the ideal ERP solution. However, before making the leap to a newer release or a different vendor, here are some guidelines to help you get started:

·????????Create an “As Is” Issues List

It is important to document all the issues you have with your current ERP solution or vendor. Does your ERP software lack key features and enhancements? Are you in need of greater customization and flexibility? Is there a gaping hole in your vendor’s customer service and technical support efforts? Be sure to get feedback from all users so you don’t overlook any critical problems.

·????????Begin to Build your “To Be” Model

After you’ve identified your key issues with your “as is” situation, start to fill in the gaps with those additional capabilities that you believe will help better control and grow your business. Appropriate a “war room” where key members of the team can paper the walls with flip chart pages so that all can agree on the overall flow and requirements. For example, your current system does not allow customers to enter orders via the internet and you can see that ability would increase sales, or the current system requires all production activity to be manually entered ad day late and a dollar short.

?Upgrade or Replace

After the team agrees on the “To Be” model and all the requirements that must either be fixed or added you must determine if the ?better course would be to upgrade your current ERP package or replacing it with a new package. This is a critical decision since switching ERP vendors is going to be the more expensive option, so if it’s possible to salvage what you have, it may be the path of least resistance. However, if you need to switch vendors to get what you need, don’t let cost interfere with your decision. The long-term cost savings you’ll gain by operating a more effective and efficient ERP solution will outweigh the initial investment. If you’re unsure which route to take, contact your current vendor to find out what is and isn’t possible.

·????????Research, research, research.

If you’ve decided to replace your ERP system, exercise due diligence in researching the various vendors and solutions available. The internet is a great place to start, but don’t overlook smaller or local providers that can often offer you what the big names can’t—a customized solution with a personal approach. You may also want to try and find out what others in your industry are using, including your customers and competitors.

·????????Insist on Prototype Presentations, Not Flash & Sizzle Demos

After you’ve explored the market and done your research, it’s time to start scheduling vendor meetings and ERP software demos. Provide the vendors with samples of your data, the key issues from your “To Be” model, and a script so that the vendor shows you how the software will work in your business and not what the vendor would like to present. This will ensure fewer?unwelcomed surprises.

Whether you decide to improve upon the ERP system you already have or make the leap to a new solution, keep in mind you shouldn’t have to transform your business to accommodate your ERP system. A great ERP solution should be built around your business.?

Harry Mosesian CFPIM

CEO

ERP-Specialist, LLC

[email protected]

772-341-2085

?