A new ERP system is needed!

Ein neues ERP-System muss her!

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 We either feel we have “no proper” ERP system or an outdated, poorly maintained one.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!