Changing your Enterprise Resource Planning (ERP) system is a major decision that can transform your business operations, but it requires careful planning and consideration to get it right first time and make the most of the investment.
Why change your ERP system?
Before diving into the process, it’s crucial to identify the reasons why you want to change your ERP. Start by examining pain points across different business functions, whether that’s like financial management, reporting, CRM, inventory control, and procurement. Common issues merchants have with their existing system include limited functionality, lack of integration, outdated technology, or difficulties accessing and analysing data.
Document and analyse your processes
Once you’ve identified your pain points, document your current processes. This step often reveals inconsistencies and inefficiencies in how your business operates and helps ensure everyone follows standardised workflows. Performing a gap analysis between your existing processes and your ERP’s capabilities will highlight whether a new system is really necessary or if making adjustments to the current one could solve the issues.
Establish a project team
Changing your ERP system will require significant time and resources, so forming a dedicated project team is vital. This team should include individuals who understand both the business and the technical requirements of ERP. Appointing a project sponsor from within the senior leadership will help maintain accountability and align the project with its overall business goals.
Create a clear specification
Define what you need from your new ERP system by creating a detailed specification. Key areas to consider include:
- Core functionality: What financials, CRM, inventory management, and reporting capabilities do you need?
- Scalability and performance: Does the new ERP have the ability to support your business growth and provide real-time data?
- Integration and accessibility: Is the new ERP fully compatible with your existing systems and remote access options?
- Ease of use and customisation: How will you balance out-of-the-box functionality with the need for tailored features?
- Support and maintenance: Will you have access to ongoing technical support and system updates?
- Total cost of ownership: Consider implementation, licensing, and ongoing costs.
Evaluate and shortlist possible solutions
Research different ERP providers by seeking recommendations from industry peers, attending trade shows, and consulting specialists. Issue your business specification to potential providers and request detailed proposals. Using a scorecard to rank each system against your criteria can help to create a clear and objective shortlist.
Making the final decision
When choosing your ERP, consider factors beyond the system’s core features. Engage openly with different providers to gauge their responsiveness and their willingness to understand your business. Seek customer references, request to meet the implementation team, and review the vendor’s own financial stability and product roadmap to make sure you will have the ongoing support you need.
Planning and implementation
Once a decision is made, prepare a comprehensive board proposal outlining the chosen system’s benefits, costs and implementation plan. Treat the implementation as a structured project with defined stages, a dedicated budget, and hold regular progress reviews.
Changing an ERP system is a complex task but, when done right, it can drive your business’ efficiency, improve data visibility, and support long-term growth. Careful planning and establishing the right partnerships with suppliers will ensure a smooth transition and encourage long-term success.
If you’d like to know more about how carrying out a successful ERP change can help you grow your business, watch the Merchant Healthcheck Webinar below. Or you can contact Moorgate Management’s CEO Chris Maityard on cmaityard@moorgatemanagement.com or 07767 291 379 for more information.