Knowing it is time for a new cloud ERP is the easy part. Figuring out how to start the journey is where it gets harder.
The case for digital transformation takes many forms, but it almost always starts with a pain point. This pain point could be a disjointed AI strategy, or backend systems that stubbornly remain in silos and poorly connect with cloud services. The idea for a new cloud ERP could come from the problem of having retail channels that don’t easily connect with your fulfillment system, or from a supply chain that’s brittle and stuck in 2019. Maybe you have an aging on-premise ERP that is showing its age, or you find that real-time operational and financial visibility is still a goal unrealized.
There are many reasons why you might be looking for a modern cloud ERP solution, but one day the need becomes obvious. Then the urgency grows until you feel compelled to act.
But where to start?
Going from pain point to a functioning cloud ERP solution takes between three months and 1 year, depending on the choices you make and the resources your organization devotes to the project.
Step 1: Define your business needs. Whether you already have an aging ERP in place or are starting fresh, the first step is thoroughly understanding your business and its needs. We’ve developed a free ERP Evaluation workbook for helping with this first step in the process.
Step 2: Select a cloud ERP that’s right for your business. There are many options on the market, from niche solutions to cloud offerings from well-known vendors. Use your understanding gleaned from Step 1 during the selection process, and stick with one of the major vendors because this cloud ERP will be with your company for a while. We outline some of the important selection criteria below in the next section.
Step 3: Find a good ERP support partner. Your business can take the journey alone, especially with cloud ERP. But you’ll save time, money, and headaches by working with an experienced ERP support partner that can guide you through the rollout process and help your organization avoid common implementation traps. Our guidance on picking a support partner is later in this article.
Step 4: Plan and configure the system. You and your support partner will map out the needs and functionality of the system, then deploy and configure the cloud ERP. After that, you’ll prepare and load your organization’s business data into the system. Depending on scope, whether you’re using a fit-to-standards methodology, and doing it all at once or taking a phased approach, this step could take anywhere from three months to nine months or more.
Step 5: Test, train and Go-Live. With your new cloud ERP in place, you’ll next test your system to see if it performs as expected and train employees on the new system. When this is done, you’ll go live and have your new cloud ERP in place.
Unlike many other types of software, choosing the right cloud ERP for your business is not about evaluating features; all major cloud ERP solutions can be configured for what a business needs. The real selection comes down to system architecture, product roadmap, support network, and vendor pricing reputation.
How modular and extensible is the solution? You want a cloud ERP that connects with everything, and both grows and evolves with your business. So the first question is how easily the cloud ERP can be extended, scaled, and adapted as technology and needs change.
What’s the vendor roadmap for the cloud ERP? First, make sure the vendor has a clear roadmap. Then, make sure the roadmap is meaty and going in the right direction. You want an ERP solution that’s actively evolving and keeping pace with technological innovation.
How robust is the user base and support community? Look for a cloud ERP vendor that is widely used and supported by a large community of developers, support organizations, and consultants. You’re going to be with the solution for a long time, and you want a support community that can assist and extend the solution when needed.
How is the cloud ERP priced, and what comes standard? Discover what comes with your cloud ERP out of the box, and what’s advertised but actually an add-on. Some ERP solutions promise the world, but key features require additional add-ons that can quickly add up. Look for a fully integrated system that has all that a business needs with just a single contract and no bait-and-switch tactics.
Almost as important as vendor selection is finding the right cloud ERP support partner. A support partner will help your business set up the system properly, ensure workflows operate as intended, assist with integrating applications and cloud services, and provide support after go-live and as your business needs to evolve the system over time.
There are three key questions you should ask when looking at cloud ERP support partners.
Do they know your chosen cloud ERP system? The right support partner will have deep knowledge and experience with the cloud ERP solution your business is choosing. Look for a proven track record of implementation and support success, and a strong relationship between your ERP vendor and the implementation partner.
Will they act like a partner or a consultant? A good cloud ERP support partner will be an extension of your business and take the time to understand your needs and situation before rollout. Focus on implementation partners that view the relationship as an ongoing partnership and will work closely with your business instead of just dictating how things are done.
For more on SAP Cloud ERP, visit our SAP Cloud ERP product page, or contact one of our experienced consultants at (801) 642-0123 or by emailing info@nbs-us.com.