An Enterprise Resource Planning (ERP) project is when you integrate all your company’s core processes into a single system, finance, HR, manufacturing, supply chain, services, procurement, whatever else you need to run your business, back-end and front. Many business leaders eventually ask whether they need an ERP project to support growth and operational efficiency.
How to know if you need an ERP project
ERP can be a launching pad for transformative growth. When it’s done right, customers are happier, employees are freed from menial tasks, and all the separate parts of your business have access to the same information in real-time. ERP becomes a launching-pad to transformative growth.
When ERP is done wrong, it gets very expensive, not to mention causing more of the stress and frustration you were hoping to squelch by implementing the project.
So before you start pouring precious time and resources into a complicated project, ask yourself if it’s even necessary. If any of the following issues keep popping up, it’s time to get started.
- Your existing solution has serious support problems. Are you having frequent disputes with your suppliers? Are existing products no longer supported? Multiple supplier and support problems are a strong indication you need ERP.
- You’re driven to distraction by rekeying, data issues, and workarounds. Every business has its workarounds, yet yours have become a serious problem. You’re wasting money on staff who merely help you get through the day, rather than serve your customers. These issues are often early indicators that a company may need an ERP project.
- Back-office systems are hindering your marketing plans. You and your CMO have some great new ideas, but back-office solutions have become the barrier to progress.
- It’s time to redesign how your business operates. If your company has grown but economies of scale have not materialised, it may be due to your processes, structure and/or technology. And sometimes the complexity of the problems is so great that the only solution is to redesign the business from the ground up.
- You have a new digital vision, but your business isn’t quite ready. Companies approach us because they have a vision for a new digital front-end, but you can’t bolt a digital front-end onto a business that does not have streamlined internal systems.
- Your current systems can’t cope with growth and investment plans. Perhaps you’ve had new investment, a leadership change, or a new partnership. Whatever the reason, there’s now a new vision for expansion, but your existing systems are a choke point.
- You have major customer service issues. Ineffective back-office systems can damage customer service, creating delivery issues, billing problems, and other errors. Customers may tolerate this once or twice, but if it keeps happening, they will go elsewhere.
- You’re having trouble staying compliant. Compliance is unavoidable part of running a company. If your data are inconsistent and your back office is fragmented, compliance is an enormous hassle.
For many organisations, recognising the moment when they need an ERP project is critical to avoiding operational bottlenecks. If any of the above seems all-too-familiar, it’s time to consider an ERP project.
Remember, though, they are a major exercise for the entire organisation and will consume your attention for months.
Freeman Clarke can help. If you are unsure whether you need an ERP project, our CIOs and CTOs can help you evaluate your systems and options. Our CIOs and CTOs are experts in all aspects of ERP products, providers, and projects. And we work entirely in the interests of our clients, with no commercial connections to any supplier or product. We use all our skills, knowledge, and experience to make our clients as successful as possible.
If you need help deciding if it’s time for ERP, or if you have further questions, feel free to get in touch for a no-pressure conversation.