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ERP-evaluation in 6 steps

Considering implementing an ERP solution? This process not only requires significant effort but also a substantial investment. Therefore, a thorough ERP assessment is useful to identify your specific needs, goals, and potential obstacles before the project begins. Moreover, it's essential to determine whether your organization is ready for such a time- and budget-intensive implementation.

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Why consider an ERP assessment?

Since an ERP implementation is a significant organizational and financial step, you want to ensure its success. Therefore, an ERP evaluation is essential before you start looking for the right ERP partner.

If you already have an ERP solution in place, it's wise to identify any software or systems that might become redundant after a new ERP implementation, or what infrastructure needs to be adjusted for a smooth transition. For companies considering upgrading or updating their current ERP solution, it's important to map out both the strengths and weaknesses of the current system.

Is your organization ready for an ERP implementation?

Determining the right time for an ERP implementation can be challenging. Here are some crucial questions to consider when detecting the needs within your company:

  • Do You Have Sufficient Transparency in Your Business Activities? Is there a lack of real-time data and reporting in your current processes, making it difficult to make timely critical decisions? An ERP system can provide more transparency in your processes, enabling you to make better-informed decisions based on current information.
  • Are You Currently Using Outdated Systems That No Longer Support You? If you're relying on diverse software systems that no longer meet your needs, it might be time to switch to an integrated solution that better aligns with your requirements.
  • Are You Missing Opportunities Simply Because Your Current Business Processes Aren't Flexible Enough? If your systems can't keep up with your business growth, you risk missing out on important opportunities. An ERP system can help streamline and optimize your processes to enable growth.
  • Do Your Current Systems Limit Your Growth Plans? If your existing systems are unable to support your expansion goals, it might be time to invest in an ERP solution that prepares your company to reach its full potential, whether on a local or international scale.

ERP evaluation in six steps

Step 1 | Preparation

Implementing an ERP solution brings a significant change in the way of working, requiring adjustments from both the company and its employees. By preparing your team, you ensure that everyone stays focused on the results. During this phase, you might consider the following questions:

  • How efficient are our current processes, and how can an ERP solution improve them?
  • What are the current challenges regarding inventory management, and how will an ERP solution improve this?
  • How will access to real-time data on production costs and sales impact our growth?

Step 2 | Define expectations

It's important to determine your goals and needs. By defining your objectives, you can consider what you expect from the ERP implementation. What problem does it solve? Look at both the short and long term. It's also crucial to identify specific needs that need to be translated into essential ERP functionalities.

Step 3 | Budget estimation

Once you have determined your needs and goals, you can estimate the required investment. During this phase, it's important to calculate both the total cost of ownership (TCO) and the return on investment (ROI).

Step 4 | Consider all options

Now that you're ready for implementation and your goals are clear, it's time to research all possible solutions. Make a shortlist of potential vendors, each with their pros and cons.

Step 5 | Make the right choice 

Your list of potential ERP solutions is narrowed down to a few contenders. It's important to make the right choice. Ask your ERP partner for a demonstration and involve your team in the decision-making process. Some relevant questions to ask include:

  • Can the solution address our problems and support our growth?
  • What will the total implementation cost be, and how will this be billed?
  • What are the support options post-implementation?

Step 6 |  Evaluate the flexibility

Before making a final decision, it's important to assess the flexibility of the ERP solution. Consider the limitations of the ERP solution in terms of time and functionality, and evaluate whether this solution can grow with your company in the long term.

Choosing the right ERP solution is a crucial decision with a lasting impact on your company's success. Take the time to thoroughly go through the evaluation process and critically assess your current business processes.

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