The topic of digitalization has been on everyone’s lips for many years and has become an integral part of today’s world. Digitization plays a decisive role in many projects in the area of process optimization. For a successful digital strategy, the data foundation and especially the linking of different data sources is of great importance. The decision to introduce a professional and standardized ERP system, to replace a technically incompatible ERP or to bundle the functionalities of stand-alone solutions into one ERP software is often made at this point.
Common to most companies, management pursues the goal of using the collected and generated data to obtain precise evaluations as a basis for future decisions. The requirements for these evaluations often vary greatly and range from real-time evaluations of an order in production to long-term liquidity and quotation analyses that extend over months.
The definition of the main processes, on the other hand, always varies from company to company and even within an industry. ERP systems must map processes such as purchasing and supply chain management, design, production and logistics or even e-commerce. The focus within a company often depends on its own value chain and the competitive advantages it has achieved to date.
In order to optimally cover both aspects, it is important, in addition to the functionalities of the ERP, that the software has access to the company’s entire database or can access important data sources via interfaces. The ERP system itself often becomes the most important data source and the company’s main data distributor as the project progresses. As the data structure, the interface options, the machinery and the software and hardware landscape of each company are different, the design, presentation and recording of data within the ERP system differs.
Particular attention should also be paid to the operator model and the corresponding licensing. Particularly when it comes to IT security, backup strategies, scaling options and integration possibilities, opinions differ between the 3 main models:
- The ERP software is installed, operated, maintained and updated within the company on its own server (on premise). In most cases, the IT department takes responsibility for this installation in conjunction with a technical consultant from the ERP provider.
- This is a pure cloud ERP solution that can be used as Software as a Service (SaaS). With this model, the user does not have to worry about maintenance and updates. However, they also have little influence on updates and changes to functionalities, as the same installation is used for all customers.
- The software is hosted in a private cloud by the ERP provider and made available to each customer explicitly as software as a service. Responsibility for installation, maintenance and updating lies with the ERP provider and is carried out in consultation with the customer.
What is an ERP consultant?
An ERP consultant is a specialist who supports companies in the implementation and optimization of Enterprise Resource Planning (ERP) systems. These systems integrate various business processes and functions, such as finance, human resources, production and sales, into a centralized software solution.
The main role of an ERP consultant is to analyze a company’s specific requirements, select suitable ERP solutions and implement them successfully. In addition, ERP consultants provide training for employees to ensure that the system is used efficiently, and they are available for ongoing support and customization to meet changing business needs.
What types of ERP consultants are there?
In order to understand the field of activity of an ERP consultant, we must first explain the different areas in more detail. Here we distinguish between 3 categories of ERP consultants.
Type 1: ERP consultant directly from the ERP provider or system integrator
The same applies to a consultant from a consulting firm with partnerships with ERP software houses or with its own ERP software sales department.
As an ERP consultant in an ERP consulting company, the main focus is on supporting the sales department with software presentations to acquire new customers or advising on the expansion of the ERP solution with new modules. By working with your own ERP product or selected modules on a daily basis, you will be able to acquire in-depth knowledge of ERP software in the shortest possible time and use it as a module expert and organizational consultant in the future. Through targeted training and education on the company’s own software product, this knowledge is constantly expanded and the consultant becomes the customer’s ideal point of contact for all aspects of the company’s own ERP software. With professional experience and confidence in using the ERP software comes the first ERP customer projects, in which the ERP consultant can take on the role of ERP project manager, for example, or be used for user training.
Consultants with strong sales skills also often slip more and more into the role of sales and take on presentations to interested parties.
Where can an ERP consultant from a software company be used effectively?
- User training on modules or the entire ERP solution
- Mapping the customer company’s business processes with the ERP software
- Requirements analysis of a new customer or for individual programming
- Installation, setup and parameterization of the ERP system in the customer environment
- Presentation of the functionalities and potential of the ERP
What can an ERP consultant from an ERP provider not do?
Due to the knowledge and proximity to their own ERP software, it can happen that attempts are made to map special existing business processes with the system through individual programming or adaptation of the standard software. This approach is not uncommon, especially in view of the time pressure in the project. In many cases, it would make more sense to look at the process as such and to redesign the process rather than the software.
Due to the wide range of functions that an ERP system must cover, most ERP consultants specialize in one module and are therefore unable to provide information about all the functions of other modules or process interfaces. In order to avoid giving false information, the customer is then referred to another consultant and ultimately has to rely on several consultants.
When should you do without a consultant from the software manufacturer?
If you need value-free and neutral ERP consulting, for example to select the right ERP system, or if you cannot provide your own ERP project manager, then you should do without a consultant from the ERP provider. A consultant with close ties to the software company or partnerships with ERP vendors will always put their product in the foreground and therefore cannot provide you with objective advice. The probability that you will find the best ERP solution for your company is very low in this case.
Type 2: In-house ERP consultants for training, project management and consulting for users in your own company
In-house ERP consultants often have a good knowledge of the business processes, the basic value creation process and special features of the company. This knowledge can be put to good use during ERP implementation and leads to greater acceptance within the company.
However, in most cases there is a lack of experience in dealing with ERP solutions, the design of requirement profiles and concepts or “best practice approaches” from the company’s own industry. The reason for this usually lies in the background of the in-house ERP consultant. Not all in-house ERP consultants come from an ERP consultancy. It is often necessary to quickly find and appoint a contact person within the company for an ERP project. The title of in-house ERP consultant is therefore quickly achieved. The situation is different when it comes to experience.
Where can an in-house ERP consultant be used effectively?
- An in-house ERP consultant can provide support wherever direct involvement in the use of ERP software is required in the company. Examples of this could be Re-training users, training new employees, identifying input errors and mass corrections or migrating and updating to new versions.
- Creation of company-wide ERP documentation and ERP instructions
- Communication with the ERP manufacturer and first point of contact for users and ERP providers. Requirements from users and company management can be collected and documented in detail. An exchange with the ERP provider about change requests or enhancements can thus take place at a high technical level.
What can an in-house ERP consultant not do?
Optimizations in the use of the ERP solution can only be suggested if the in-house consultant really knows the business processes and working methods of the ERP users. There is often a lack of time for simultaneous further training or attending training courses on the ERP software and in-depth analysis of the business processes in specialist departments. Particularly at the beginning of the ERP implementation, care should be taken to ensure that sufficient working time is available for intensive familiarization. A better alternative is to start with a duo of in-house and external ERP consultants (an independent ERP consultant or ERP consultant from the ERP system house). The consulting services of the additional ERP consultant can then be scaled down further.
Company-wide concepts or an unauthorized expansion of the ERP solution should not be carried out due to a lack of “best practice approaches” and deep insights into the ERP software or subsequent update problems. Here too, depending on the project, it is worth consulting an experienced independent ERP consultant or a consultant from the ERP supplier.
Type 3: ERP consultant from an independent consulting firm
Consultants from independent ERP consulting firms in particular have a very high level of knowledge. The cooperation with many companies, company shapes and sizes, ERP solutions and industries results in concentrated know-how. If this knowledge is well distributed within the consulting firm, documented accordingly and made available, customers can benefit to the maximum from independent ERP consulting companies.
Origin and industry proximity also play a decisive role. Independent ERP consultants come from a wide range of disciplines, industries, science or universities and therefore cover a broad spectrum. This makes it much easier to find an ERP consultant from your own industry or with a certain proximity to the type of company.
Where can an independent ERP consultant be used effectively?
- Strategic design of organizational solutions, IT strategies, process optimization through digitalization or software solutions. Missing expertise in your own company can be bought in and best practice approaches can be pursued more quickly. Industry-related consultants know the problems and special features of an industry and can incorporate targeted solutions into the design.
- Analysis of the requirements for an ERP system (i.e. during ERP selection). Accompanying ERP implementations and designing ERP solutions. The independent ERP consultant can make full use of his strengths in these areas in particular. Thanks to his independence, the customer receives value-free concepts, ERP specifications, comparison matrices and optimally tailored expertise in the selection of the right ERP software partner for his own company.
- By combining industry knowledge, the client’s business processes and experience with ERP software, ERP consultants of this type are also particularly suitable for setting up ERP test environments and evaluating the associated results. Customers of an independent ERP consultancy can therefore be sure that the contractual functionalities of the ERP software are adhered to and really do cover all of the company’s processes.
What can an ERP consultant from an independent consulting firm not do?
In most cases, detailed and in-depth user training with a selected ERP software and in a specific module cannot be provided by an independent ERP consultant. In this case, we recommend contacting a consultant directly from the ERP provider. This does not apply to support with ERP training in your own company, for example if this is provided by an in-house ERP consultant. This combination in particular can lead to added value.
The wealth of experience of an independent ERP consultant is the highest accolade. ERP consultants with little professional experience are not suitable for the sole design and implementation of processes. However, in conjunction with an experienced ERP project manager or senior consultant, good requirements concepts or process models can be created. The combination of young and old can work wonders and the critical and inspiring view of the team can lead to success for a well-rounded concept and smooth implementation.
What does the path to becoming an ERP consultant look like and how do I become an ERP consultant?
Basically, it can be said that many ERP consultants are self-taught. It is not uncommon for ERP consultants to have accompanied the ERP implementation in their own company, to have worked as an interface between IT and individual departments, to have a background in controlling or to have programmed the company’s first own Microsoft Access-based company database in the past. In addition to self-taught ERP consultants, however, there are also ERP consultants who have chosen a more modern path into the world of ERP consulting.
Qualifications and requirements of an ERP consultant
A successful ERP consultant needs a combination of technical expertise and business knowledge. Important skills include in-depth knowledge of ERP systems such as SAP, Oracle or Microsoft Dynamics as well as the ability to analyze and optimize business processes. A formal education in business informatics, business administration or a similar discipline is often the basis. In addition, certifications such as SAP Certified Application Associate or Microsoft Certified: Dynamics 365 Fundamentals, are an advantage. Practical experience and continuous training are crucial to keep up with the latest developments and technologies in the ERP field.
From ERP user to ERP consultant to software or consulting company
Nowadays, it often happens that an experienced and interested ERP user from a specialist department of a company (e.g. work preparation or purchasing) dares to switch to an ERP consulting or software company. Once at the ERP system house, ERP consultants with in-depth specialist knowledge then provide support in the early and late sales phase or promote and accompany the ERP implementation in the customer company.
These consultants are particularly suitable for medium-sized companies (SMEs) that come from similar industries. The consulting firm and its customers thus benefit immediately from the specialist knowledge gained from everyday life as an ERP user and process design within the specialist area. This knowledge can be put to use immediately and is rewarded with a good salary.
As there is no classic and practical training for ERP consultants, the number of further training opportunities for ERP consultants has risen dramatically in recent years. As a result, more and more theoretically experienced consultants can be found. However, especially in small and medium-sized companies, practical experience within the industry (or at least similar industries) is often required for ERP implementation. For a successful start in the world of ERP consulting, it is therefore preferable to start with practical knowledge.
From ERP consultant in a consulting firm to in-house ERP consultant
The career path from ERP provider (e.g. SAP, Microsoft Dynamics or AP+) to ERP consultant within an individual company is much less common. Especially in the case of long-term ERP consultants, a company benefits enormously from the accumulated know-how from similar companies and the variety of solutions they have become familiar with. As a consultant, on the other hand, you gain more flexibility due to the reduced travel times and the advantage of being able to track, expand and manage the implementation in more detail and over the long term.
However, travel times, frequently changing working conditions and locations are included in the price when working as an ERP consultant in a consulting company and therefore lead to better monetary compensation in most cases. In most cases, medium-sized companies with a production operation cannot afford this compensation and rarely offer such a broad spectrum for further and advanced training.
Salaries for ERP consultants
The salary of ERP consultants is influenced by various factors. These include the applicant’s qualifications, including the highest educational qualification and relevant certifications. Work experience also plays a crucial role, as more experienced consultants tend to earn higher salaries. The location of the employer as well as the size of the company can also have a significant impact on the salary structure.
Conclusion and notes on the various ERP consultants
In addition to the tasks and activities of an ERP consultant listed above, interpersonal and social skills should not be neglected. As an ERP consultant, working with a wide variety of people, companies and positions on a daily basis is the order of the day. Communication skills and the desire to impart knowledge are paramount.
It is also important to stay up to date and have a thirst for knowledge. Today’s “best-practice approaches”, business models and processes are constantly changing and require a willingness to keep learning and to be able to think across departments.
Regardless of the type of consultant, ERP consultants play an important role in helping their own or other companies to grow, gain competitive advantage and maintain their market position.
Independent ERP consultants and ERP consultancies in particular can provide profitable support for all companies, decision-makers and future ERP users through targeted and correct use. Compared to consultants from an ERP system house, this support is independent of whether the ERP solution is SAP, Microsoft Business Central, smaller ERP solutions or industry solutions.
