A new ERP system is needed!

Perhaps you are familiar with this? We either feel we have “no proper” ERP system or an outdated, poorly maintained one. Support for important processes is so-so…
Secretly, the thought is spreading in our heads: “…there’s better on the market! And the new colleague recently told me about his good experience with System X (nostalgic, everything used to be better…:-)”

The inspiration – also “built” in my head: Ahh – this is more or less how I would like to imagine working in meetings in the future! Good! – With all its dashboards, ERP provides us with fast and always up-to-date information at the touch of a button:

A new ERP system is needed!
A new ERP system is needed!
A new ERP system is needed!

Now the rational part of us catches up and says sensibly: “Now slow down…this needs to be well thought out and then tackled!”

A project plan for the search, selection and design of a new ERP system can be divided into different phases. A structured plan with the most important aspects, opportunities and risks could look something like this:

So here we go with perspiration (the 99%, the sweat…:- old Henry Ford sends his regards:-))

Project plan: Search & selection of a new ERP system

Phase 1: Needs analysis

  • Objective: To determine the current requirements and weaknesses of the existing system
  • Activities:
    • Interviews with stakeholders (employees, management)
    • Analysis of the business processes
    • Recording the functions that the new ERP system should offer

Phase 2: Market research

  • Objective: Identification of potential ERP providers and solutions
  • Activities:
    • Internet research
    • Check market analyses and trends
    • Use comparison tools and platforms

Phase 3: Creation of a requirements catalog

  • Objective: Documentation of the necessary functions and features
  • Activities:
    • Prioritization of requirements (must-have vs. nice-to-have)
    • Creation of a specification sheet

Phase 4: Vendor evaluation

  • Objective: Selection of potential providers that meet the requirements
  • Activities:
    • Creation of a shortlist
    • Request for proposals (RFI/RFP)
    • Evaluation of the offers in terms of price, functions, support and scalability

Phase 5: Demos and pilot projects

  • Objective: Testing the selected systems in practice
  • Activities:
    • Carrying out demos and test installations
    • Collect feedback from users
    • Evaluation of user-friendliness and adaptability

Phase 6: Decision and contract negotiation

  • Objective: Select the appropriate ERP system and prepare for implementation
  • Activities:
    • Involve decision-makers for the final selection
    • Contract negotiations with the selected provider
    • Clarification of support, training and maintenance

Phase 7: Implementation and training (usually with its own sub-project)

  • Objective: Ensuring a smooth introduction of the new system
  • Activities:
    • Create design & plans for the implementation project
    • Develop training plans for employees
    • Roll-out of the system
    • Support with effective internal & external communication
    • Periodic collection, discussion and application of “lessons-learned” from the course of the project
    • If necessary: Opportunity and crisis management during the course of the project

Opportunities and risks

A new ERP system is needed!

Internal aspects

Opportunities:

  • Increased efficiency: Automation of processes can lead to higher productivity.
  • Data integrity: Better data management can reduce error rates and improve decision-making.
  • Scalability: A modern ERP system can grow with the company.

Risks:

  • Resistance to change: Employees may reject the new system, which could reduce adoption.
  • Lack of expertise: Lack of experience with similar systems could lead to wrong decisions.

External aspects

Opportunities:

  • Market advantage: An up-to-date ERP system can provide a competitive advantage.
  • Customer satisfaction: Improved processes can lead to better service.

Risks:

  • Vendor dependency: Dependence on a particular vendor could limit long-term flexibility.
  • Technological risks: Security incidents or software errors could disrupt processes and lead to data loss.

This is an initial structured approach to the selection and implementation of a new ERP system.

A new ERP system is needed!

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