| As your business grows, the increasing number of | | | | time and resources, and committing to this sort of |
| employees, clients, products, services, and functions | | | | investment for the sole reason that other businesses |
| increases the complexity of organizing the data | | | | like yours are making this investment is not a logical |
| associated with each of these entities. One way to | | | | conclusion. Your goal at this point may be to find the |
| streamline system processes and data control is with | | | | right ERP solution for your business, but it is |
| the implementation of Enterprise Resource Planning | | | | important to keep an open mind. You should not |
| (ERP) software. | | | | invest in such a wide-reaching system if your |
| ERP solutions are designed to integrate all of the data | | | | business could be better served through process |
| and processes within your company into a single | | | | improvements or a redesign of your organizational |
| system. A single system allows for data from one | | | | structure. |
| process to be used by a second process, with a | | | | Before you embark on the ERP planning process, it is |
| single database tying the systems together. | | | | useful to perform a process study on the existing |
| Businesses without a central ERP system spend a lot | | | | functions within your business. This evaluation will act |
| of time performing redundant tasks, re-entering data, | | | | as a baseline from which you can evaluate potential |
| and reconciling duplicate data. Data entered into one | | | | improvements during the ERP planning process and |
| system may appear different in another system. | | | | actual improvements after the ERP system |
| These additional tasks result in increased labour and | | | | integration. |
| personnel frustration. An ERP system eliminates | | | | Evaluating the Vendor Landscape |
| vertical data silos in your organization, breaking down | | | | With your requirements list in hand, you can now |
| the virtual walls between departments. | | | | begin to research potential products that meet your |
| One database contains all company data, and all | | | | requirements and vendors that can help your |
| departments pull data from the same database. | | | | business achieve its goals. But where do you start? |
| While the end results of a streamlined system include | | | | A good starting point for evaluating potential ERP |
| increased productivity and data availability, the | | | | system vendors is not the vendors themselves, but |
| prospect of selecting and integrating an ERP | | | | independent research organizations who have |
| software solution into your business can be daunting. | | | | examined the marketplace and have unbiased |
| It is certainly a major undertaking to uproot many of | | | | opinions on different vendors. Forrester Research and |
| your entrenched systems and train personnel to use | | | | Gartner Research are two examples of independent |
| the new system, but understanding how the ERP | | | | market research firms who provide insight and advice |
| software system will improve your business | | | | to companies on a variety of technology and |
| processes and creating a strategic implementation | | | | business topics. |
| plan will keep the end benefits in your mind and | | | | With your requirements list in hand, review the data |
| smooth the integration of the ERP software into you | | | | on as many different vendors as you can. Take note |
| business. | | | | of potential matches as you go, and you will end up |
| Selecting an ERP Solution The first step in the | | | | with a "short list" of vendors that at first glance |
| implementation process is to select the ERP software | | | | meet the needs of your business. Once you have |
| solution that is most appropriate for your business. | | | | developed a short list of vendors, now is the time |
| This requires you to determine what your goals are | | | | for more in depth examination of each vendor. Some |
| as a business and what you want an ERP system to | | | | potential questions to be answered include: |
| do to help you achieve those goals. You need to look | | | | - What is their experience in your industry? - What |
| at the people who will be actually using the software, | | | | local support do they provide? - How well funded are |
| including which department functions will be included in | | | | they? - How long have they been in existence? - |
| the integration and how to include your personnel in | | | | What future developments do they have planned for |
| the decision process. You need to determine what | | | | the system? |
| you want the ERP software to do for your business | | | | While your company could theoretically mix and |
| and to list the functions that are required for your | | | | match modules from different vendors to create an |
| business. Finally, you ll need to research different ERP | | | | "ideal" solution for your specific business needs, this |
| software vendors, since each package has pros and | | | | concept provides additional headaches in terms of |
| cons that may or may not be right for your | | | | multiple phone numbers and contacts for support and |
| company s needs. | | | | sales, and non-compatibility between modules of |
| Determining Your Goals When researching potential | | | | differing vendors. |
| ERP packages, you need to have a clear | | | | Having one vendor supply a complete solution |
| understanding of what your goals are as a business, | | | | eliminates these problems, giving you a single point of |
| and what you want out of an ERP software system. | | | | contact and a seamless application across your |
| You need to ask yourself specific questions to | | | | business. It also avoids the problem of blamestorming |
| determine what the precise needs of your business | | | | amongst multiple vendors when a problems does |
| are. Some of these questions may include: | | | | occur. |
| - What process and productivity goals are you trying | | | | As with any large investment, you should have |
| to achieve through the new ERP system? One of | | | | several potential vendors and software platforms on |
| the primary reasons for implementing an ERP system | | | | your short list, rather than placing your faith in one or |
| is to improve productivity across the company by | | | | two packages. Investing up front in quality |
| streamlining how different departments are | | | | background research will ensure that you find the |
| connected and how they use each other s data. | | | | right vendor, the right software, and the right |
| Knowing the specific goals for your business will | | | | system configuration for your specific business, |
| make it easier for you to select the right vendor and | | | | industry, and requirements. |
| software package to meet your goals. | | | | The installation and integration of an ERP software |
| - Which departments will be most affected and | | | | system is a significant decision on the part of a |
| should have the most say in the decision? Some | | | | company, and a significant commitment of time, |
| companies that integrate ERP software into their | | | | personnel, and funding. Choosing the right ERP |
| business only focus on specific departments within | | | | system for your business can be simplified if you |
| their business, such as accounting and payroll. Others | | | | have a good understanding of your requirements, |
| want a system-wide package that will impact all | | | | research available ERP software packages, and |
| departments. Knowing which departments will be | | | | perform due diligence, asking potential vendors the |
| affected will allow you to build a planning and | | | | right questions. |
| implementation team with representatives from all of | | | | In a nutshell, your preparation for selecting an ERP |
| the affected departments. | | | | software system should include: - Clarifying your |
| - How will you determine success? What are the | | | | business goals - Creating an ERP implementation team |
| success metrics? Within what timeframe should it be | | | | - Determining your system requirements - Examining |
| implemented? It will be impossible to achieve success | | | | the vendor landscape and create a short list - |
| if you do not know what success means to your | | | | Performing due diligence of potential vendors and |
| business. Knowing the metrics that you want to | | | | software options and performance - Creating a |
| monitor will allow you to manage the implementation | | | | detailed implementation plan to include training, |
| process to ensure that success is met. Your business | | | | integration, analysis of success metrics, and |
| goals are the direct driver behind selecting an ERP | | | | post-implementation support. - Planning for |
| software solution. | | | | post-implementation hurdles such as short-term |
| If a certain system will not help you directly achieve | | | | productivity loss while your team negotiates the |
| your goals, then any investment in that system is | | | | system learning curve After your preparation is |
| wasted money. | | | | complete, you should have extensive knowledge of |
| On the other hand, you may discover through this | | | | the ERP market and be ready to move forward and |
| goal evaluation process that an ERP solution is not | | | | select a vendor to implement the right ERP solution |
| the right solution for your company at this time. An | | | | for your business. |
| ERP software system is a significant investment in | | | | The full white paper can be obtained at crm-erp. |