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Posts Tagged ‘ERP selection tips’

Recently another ERP blogger we frequently reference, Eric Kimberling of Colorado, wrote about some of the lessons he’s learned from 12 years of guiding clients in their ERP pathways and decisions.

Given our thirty years of experience, we thought we’d take a few of Mr. Kimberling’s comments and splice them with our own to provide a few thoughts on some of the key lessons we’ve all learned about what he likes to call “digital transformations” or broadly speaking, ERP implementations and workflow improvement initiatives.  For the most part, the topic points are his, and the advice following is ours.

  1. Here we are in unanimous agreement: It’s more about the people and processes than it is about the technology.   Identifying key processes, establishing the right workflows, seeking to make users comfortable with change… and mapping all these efforts into a suitable software solution that removes redundant efforts, eliminates disparate information silos,  streamlines peoples’ jobs and ultimately serves your customers more efficiently – these people- and process- focused initiatives are the real key to digital transformations.
  2. There is no one-size-fits-all answer. There’s a lot of good software out there.  Just as there are a lot of good implementation consultants.  Unfortunately, there are also a lot who know the technology but not the business processes.  Why would you hire anyone that’s not a subject matter expert in your chosen field?  Ours expertise is manufacturing and distribution — so don’t hire us to install your dental practice management software (or fill your cavities) — and vice-versa.
  3. Your business should drive your software and transformation needs – and not the other way around. That also means that if your software cannot be matched to the way you work, then you need to find different software.  (Another reason for hiring implementation consultants that know your territory, i.e., business.)
  4. Take the hype and the jargon with a major grain of salt. Tech is notorious for having a million buzzwords.  Cloud, SaaS, big data, XML, agile… the list goes on forever.  Once again, what’s best for the business?  At the end of the day, where your system is located (local, cloud, etc.) is less important than whether the tool you choose is going to be the right one for the way you work, and be up and running over 99% of the time.  The buzz words and the tech, while sometimes important, always matter less than the interests and flow of your business.
  5. The best technology will not fix broken business processes. We always insist on making the business process analysis the first item on our agenda.  Identifying process flows, both the current ones and what they should look like in the end, is what creates the road map to everything that follows.  Involve all the key stakeholders and users in your project in this crucial step from the very beginning.  That will ensure you’re starting from the right foundation.
  6. Failures, like successes, don’t happen overnight. Usually, win or lose, there is a trail of decisions, events and actions – all driven by people­ – that determines the success or failure of most ERP projects.  These occur along a timeline.  So when you see something going off the rails (and we always tell our own consultants this), be the first to pull the cord and stop the train.  Run towards the fires (issues).  It will usually only get worse if you don’t stop, pivot, re-evaluate and take corrective action to fix the flaws in your foundation sooner, rather than later.

Both Kimberling and we could list more, but today’s list should provide any company about to embark on a digital transformation or process and software upgrade with the key lessons they’ll want to know – before they begin the effort.

 

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tipsERP blogger Eric Kimberling of Panorama Consulting recently posted some advice about selecting an ERP system, along with a few comments about specific systems, which we thought we’d share today (while adding a couple of our own).

We know that most clients think (or hope) an implementation can be accomplished in a few short months.  We usually try to let them down gently when we will tell them that a year or more is the norm – with large and comprehensive systems often taking considerably longer.

Kimberling, who owns an ERP consulting firm on Colorado, notes that his firm’s experience is indeed the same: about 18-24 months for the “average implementation.”  And that’s regardless of whether the system chosen was SAP, Infor, Oracle or Microsoft Dynamics.

Among those particular choices (SAP, Infor, Dynamics, Oracle, Dynamics), his firm’s experience showed that Microsoft Dynamics was the lowest cost on average to implement, but generally took longer too.

Some of Kimberling’s advice to shoppers includes:

  • Define and prioritize your highest priority business requirements to quickly arrive at a short-list
  • Leverage independent experts who can help you quickly narrow the field
  • Don’t forget to consider implementation while evaluating ERP systems (Don’t just focus on the software: understand how it will be implemented.)

And we would add one that’s maybe a bit of a surprise: the software is not what matters, at least not entirely.  There’s lots of good software: it’s the team you work with, and their understanding of how to apply the software to your business processes, that will yield the most superior results in the end.  We know it from years of experience.

He reminds us that 50-70% of all the implementations his firm sees experience significant operational disruption.  The industry average, he notes, has hovered just above 50% for many years.  So… expect some disruption.  Just emember, ERP is a strategic investment.  It takes time, and it’s not turn-key.  Work with your consultants and providers as a team – and we can assure you, you’ll get there.  Patience on both sides goes a long, long ways.

According to some statistics Kimberling shares at his website, payback tends to come in greatest at years 3 and 4 after purchase.  But we would add: after that, the ROI and savings are permanent.

Finally, Kimberling advises that you can quickly narrow the field down to the top ten or twenty percent by prioritizing those that meet two key requirements:

1) they are critical to your business, and

2) they are differentiating functions of various ERP systems in the market

Only those that meet both criteria should be used to narrow down your short-list.

 

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