5 requirements that should not be missing from your ERP checklist
1. Structured, central data management is in place.
Company data is at the heart of every ERP system: it is the basis for analysis, automation and documentation. The quality of the data is therefore of central importance for the ERP system. Incomplete or outdated data also affects the system’s results. Experts refer to this as ‘trash in – trash out’. Before you consider implementing an ERP system, you should review your data management:
- Is the master data complete and up to date? How good is my data quality?
- Are there guidelines or specifications for data entry and maintenance?
- Are the responsibilities and accountabilities clearly defined? Is there a data quality assurance process?
2. Our business processes are clearly defined and documented.
Every ERP system is based on a process perspective, as this is the only way to ensure smooth operation. The software records process information processes it and forwards the results. In other words: no clear processes mean no effective analysis. Before an ERP system can work efficiently, your current processes must be formally described (actual state). Otherwise, not all processes can be fully mapped in the system. However, it is important to ensure that future scenarios are also considered when documenting the processes. What impact does the corporate strategy have on current processes?
3. The corporate strategy is defined, clearly understood and established in the company.
The corporate strategy defines the long-term goals, vision and values of the company. ERP software is a powerful tool that is used in various areas of a company. It is therefore necessary to align the ERP implementation with strategic goals to ensure that not only the current situation is taken into account, but also future growth plans. This, in turn, is also reflected in the scalability and functionality of the software.
4. We maintain a structured exchange of information and process discipline in the company.
In every company, regardless of its size, information is exchanged. Data such as delivery times, stock levels or project calculations are passed from one department to the next for processing. For the ERP system to support this exchange, it must be process-based. In large companies, this is often already the case, but smaller companies often still work in a disorganized manner. To ensure that your ERP system works optimally, you need to make sure that every information exchange in your company is documented and regulated by processes. Even with well-thought-out processes that ensure seamless data exchange, employee cooperation is crucial. If employees do not consistently enter data into the system, the processes will be ineffective. Process discipline is required here. It should be a matter of course in the company to record every transaction and piece of information in the system. Only in this way can daily operations be comprehensively mapped.
5. We have the necessary personnel for the ERP project.
Often, the introduction of an ERP system is seen as merely a technical project. The IT department introduces the software and the rest follows – at least in theory. In practice, however, it is an extensive change management process that affects the entire company. It is therefore necessary to assign qualified personnel, including project managers, key users and process owners, to supervise the implementation process. Make sure that the necessary resources of your employees are released for the ERP project at an early stage.
Have you ticked all five boxes? Then you are ready to implement your ERP system!
If you have ticked all five of the boxes on your ERP checklist, you can breathe a sigh of relief. You have fulfilled the essential requirements for a successful ERP project. But this is just the beginning. As mentioned at the start, there are still many activities to come. In any case, careful preparation for the ERP implementation is important. It is better to invest more time in planning, as design flaws can end up being expensive.
If you need support with the preparation or would like more information, our experts will be happy to help.
