An enterprise resource planning (ERP) system is the information backbone of a company that reaches into all areas of the business and value chain. Replacing it can thus be a very difficult and painful process. When done correctly, though, an ERP replacement can unleash unlimited business potential, says Aminah Khoza, Africa channel manager for Epicor Software Corporation.
Selecting a proven ERP provider is the best and only way to ensure the success of an ERP replacement project. The provider must be part of the vision and should be attuned to the long-term business strategy and objectives of the enterprise. It is the duty of the software provider to ensure that a company's replacement system will be its last.
So how does an enterprise go about selecting the best solution that meets its requirements? Here are 12 criteria to help you choose the best ERP provider for your business:
1. A future-proof decision
An ERP system must be able to adapt to dynamic technology and business strategies that only a few providers can accurately predict today. An ERP vendor with a proven track record in agility and meeting changing market needs is essential. It is important to find vendors with a history of delivering new technologies and solutions, such as service-oriented architecture (SOA), lean strategies, workflow and e-business, that streamline and automate business operations and processes.
2. Rock-solid solutions
The best systems include capabilities that give your organisation new ways to become more competitive. SOA is vital as it helps businesses connect with their customers, partners and employees. Rock-solid solutions generate rock-solid results. Companies that use an ERP solution with superior functionality report measurable improvements from both an operational and financial perspective.
3. Replacement know-how
A vendor that specialises in ERP is a better choice than one with divided, unfocused interests and business units vying for resources. In the last five years, system replacements have reportedly comprised more than 80% of ERP implementations. When a vendor's business is 80% to 90% system replacements, they know what it takes to deliver a smooth and flawless transition. They will also have expertise in how to review and replace ineffective processes. Look for a vendor that has replaced systems for everyone from Fortune 500 companies to mid-sized and small companies, as well as for businesses with both single and multiple packages.
4. Elimination of implementation guesswork
The success of your new system depends on two dimensions: the time it takes to implement the system, and the amount of business change and value delivered. Quick advantage occurs when the implementation is fast and results in high strategic value. The greatest strength of a software vendor should be its ability to deliver this type of implementation. A proven implementation methodology removes uncertainty and addresses your expectations for a rapid, effective and worry-free system replacement process.
5. Tailor-made business fit
No two businesses are alike. You therefore don't want a "cookie cutter" approach to setting up your system. Whether you are modelling currently effective processes or re-engineering and improving ineffective processes to support new strategies, five key elements of the solution's design give it the ability to create a tailor-made solution for your company. These elements are Execution of the Implementation Roadmap, System Settings, Tools to Customise Your System, Advanced Technologies, and Portals.
6. Industry expertise
With extensive industry experience and expertise, a vendor will be equipped to offer you the kind of support services and tools that allow you to successfully solve your most difficult business challenges, rapidly deploy applications, and maximise your return on investment. Make sure the vendor's implementation team, which will include design professionals, systems analysts, technical, consultants and financial experts, understand your industry inside and out.
7. Sound financial foundation
Businesses ultimately succeed or fail based on their ability to operate profitably. The combination of a competitive, global business environment, with the mandatory regulatory compliance many companies face today, makes successfully managing your finances one of the biggest challenges your company can face. The right ERP vendor will help your business achieve sound financial management, from the basics of general ledger transaction entry to providing the sophisticated reporting, monitoring and business performance management tools available.
8. Stacking the technology odds in your favour
As a business, you need technologies that will grow with you, help you compete successfully, and effectively run your operations both now and in the future. Thus, information technologies should be evaluated and employed based on their relevancy and ability to provide sustained business advantages. Reliable and proven technologies are then seamlessly integrated into the total suite to deliver the greatest return.
In the long run, IT will not keep you in business. That makes technology a strategic rather than a strictly IT decision. Although technology is clearly an important influencing factor in any ERP selection process, history continues to show that some of the best ERP results occur when technology specifications are determined by what is required to support critical business needs. That is the essence of a resilient approach to technology.
9. A testament to scalability
If this is to be your last ERP system replacement, investment protection should be the cornerstone of your software provider's product development strategy. Partner with a vendor offering proof of the ease of upgrading, low need for custom programming, and high relevance of capabilities delivered in each new release. One that can expand the system's functionality as the need arises or as new features become available. The best vendors have a high percentage of customers on maintenance and current releases and have a majority of clients over the seven-year mark.
10. Community collaboration: maximising customer moments of truth
Every encounter between customers and their frontline people is a 'moment of truth' that sets the tone for the entire company in the minds of their customers. You must know how customer-oriented your supplier is and how much information it provides to those on the front line. Look for a comprehensive support programme and exclusive services, such as Remote Consulting, Client List Server and Data Access, On-Call Web Conferencing User Support, and Web-Based Training and Solution Webinars, that have a powerful impact on the success of your ERP implementation.
11. Integrity and dedication
Determine the longevity of your vendor. Look for consistent growth and financial stability as well as adherence to sound corporate and fiscal management practices. Understand its business objectives. Consistent growth and profitability maintains and improves the vendor's ability to provide exceptional support and technology advancements in step with your developing needs and the needs of the market.
Beyond longevity of your vendor, you'll also want to understand its dedication to its customers. Response time to requests is of critical importance and should be in minutes. Look for response time statistics that show continuous and dramatic improvements. Look for evidence that support personnel relentlessly strive to achieve this goal while maintaining the highest standards of professionalism. Make sure your ERP vendor is willing to work as hard as necessary to get you answers and help when you need it.
12. Delivering return on investment
For more than two decades, organisations have seen their highest ROI come from their ERP. This is due to strategic ERP solutions that streamline, integrate, automate and improve operations in companies around the globe. An ERP replacement should help you achieve the maximum return on investment with the shortest payback period.
Happy hunting
Replacing an enterprise resource planning system is a colossal event for any company. By definition, an ERP system is the backbone of your business. Replacing it can be a difficult and painful process. When it is done correctly, it will mean greater efficiency, increased profitability, more flexibility and growth potential. The cornerstone of this effort is finding the right partner to simplify this difficult transition, a partner that will maintain focus until you achieve your goals.
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