By some estimates, over 20 million Americans are starting and operating new businesses. The good news is, these brave entrepreneurs can harness easy to use and economical cloud-based apps/tools like Salesforce, Workday, and NetSuite to enable important functions and activities like sales, finance and collaboration right out of the gate. For the start-ups that grow and survive, more sophisticated enterprise resource planning (ERP) software will be needed to support and control the business and better serve customers.
Some key signs that you may need to consider an ERP system include the inability to easily obtain critical information about your business from a multitude of separate applications and an increasingly difficult time producing reliable and timely financial results.
The Cloud has made it possible for companies as small as $1 million in sales to access ERP capabilities for a reasonable investment. But buyer beware, many ERP implementations still fail to deliver the needed capabilities on time and on budget.
As your business ascends the growth curve on its way to future stardom, here are 5 tips to significantly raise your odds of success when choosing and implementing an ERP system:
- Be prepared – Define your core business processes and mission-critical business requirements before choosing a system. Understand how they will most likely change as you grow. You shouldn’t buy a new car without understanding your current and future needs and choosing ERP software should be no different.
- Consider the Cloud and then consider it again – This advice applies to small and large companies alike. Gone are the days where you will need your own hardware, software and IT staff to maintain it all. The Cloud reduces your up-front investment, minimizes the number of support people you need to hire, and gives you the flexibility to migrate to better options much faster in the future.
- Consider more than one Cloud application to meet your functional needs – The typical middle-market ERP implementation can include 3 or more Cloud-based applications. The good news is that integration platforms such as Dell Boomi and Jitterbit make the integration of Cloud software easier than ever before. When sourcing project assistance, check to make sure your technology partners have recent integration experience and expertise.
- Hire consultants to fill skill gaps and manage risk – This sounds self-serving but it’s not. I have been in more than one start-up and high growth company – there are many hats to wear and there never seems to be enough time to build systems and necessary capabilities. Furthermore, your expertise – product, R&D, raising capital, serving customers – is probably not designing, selecting and installing an ERP system. Software providers will offer their own implementation consultants or trusted integration partners to help get the job done. If you are going to spend over $100,000 for an ERP solution, consider part-time or full-time help from an independent consultant with no ties to the ERP software providers. Your ROI and peace of mind will make it a worthwhile investment. Click here to learn more about our technology assessment and strategy framework.
- Fix your implementation fee and pay on milestones – Avoid time and materials based contracts. Back to the car shopping analogy, get at least three fixed price bids and insist on a warranty to cover major issues. As part of your fixed price contract, pay for completed work based on the quality of key deliverables and the attainment of major milestones (e.g., blueprint complete, acceptance testing done, go-live date met). Make sure the software vendor and any integration partners have skin in the game. Finally, a good consultant can help you negotiate the best price and service terms for all aspects of your ERP deal.
One thing is for sure, the technology world and ERP space will continue to rapidly evolve and change.
Following these tips will help assure your ultimate success and improve your ability to serve your customers. Contact TSI to discuss your specific needs and to learn more.
