Five Critical Steps To Selecting An ERP

Selecting the right cloud Enterprise Resource Planning (ERP) solution for a manufacturing company is a crucial and resource-intensive process. Failing to plan and execute it effectively can result in misaligned expectations, budget overruns, and an ERP system that does not meet your organization's needs.

To ensure a successful outcome, it is essential to follow a comprehensive approach that addresses key findings and incorporates recommendations from industry experts. This article will provide a step-by-step guide based on Gartner's research and insights to help you choose the best-fit cloud ERP solution for your manufacturing company.

Key Findings For Choosing an ERP

Failure to build a cross-functional team results in unconsulted critical stakeholders and misaligned expectations.
Poor identification and prioritization of requirements lead to limited or vague RFP questions that fall short of objectives.
Superficial evaluations of critical underlying platform capabilities can limit flexibility and agility.
A well-governed RFP process ensures an objective evaluation that eliminates bias.
Under-scrutinized evaluation of vendor-partner ecosystems and users, communities can limit opportunities to unlock the full value of the cloud ERP solution.

Five steps for choosing the best ERP for your business

To address the above findings and ensure a successful ERP selection process, application leaders responsible for ERP should consider the following recommendations.

Step 1: Form an Evaluation Team

Select functional, technical, line-of-business staff, and end-users to form a cross-functional evaluation team.
Include representatives from various geographic areas, functions, and primary user roles.
Engage stakeholders from critical downstream systems and processes affected by the new ERP.
Involve change management resources early on to identify implications and requirements.
Ensure representation from internal audit and data privacy teams for global implementations.

Step 2: Define and Prioritize Use Cases and Functional Requirements

Define end-to-end business process use cases that align with organizational strategies.
Focus on addressing deficiencies in previous ERP selections and consider future-state objectives.
Encourage innovation, process improvement, and standardization.
Utilize Gartner's Critical Capabilities for Cloud ERP for Service-Centric Enterprises to guide the identification of critical use cases and functional requirements.¹

^{1 - Gartner, Critical Capabilities for Cloud ERP for Service-Centric Enterprises. Published 14 July 2022}

Step 3: Ensure the Desired Platform Reference Architecture and Capabilities

Specify the desired platform reference architecture to ensure agility and flexibility aligned with the business application strategy.
Evaluate underlying platform capabilities to avoid superficial assessments that may limit future scalability and adaptability.

Step 4: Execute a Well-Governed RFP Process

Analyze the ERP landscape and ensure evaluation integrity and objectivity.
Develop effective demo scripts that focus on meeting business objectives and user interactions.
Construct a responsible, accountable, consulted, and informed (RACI) matrix to clarify responsibilities throughout the selection process.

Step 5: Evaluate User Communities and Partner Ecosystems

Examine the additional value that user communities and vendor-partner ecosystems can contribute throughout the application life cycle.
Consider the support, knowledge sharing, and continuous improvement opportunities offered by the ERP solution's user community.

Conclusion

Choosing the best-fit cloud ERP solution requires careful planning, collaboration, and adherence to industry best practices. By forming a cross-functional evaluation team, defining and prioritizing use cases and functional requirements, and ensuring a well-governed selection process, manufacturing companies can increase their chances of selecting an ERP solution that aligns with their business objectives and maximizes value. Additionally, when considering ERP solutions, it's worth noting that Drupal open-source development can seamlessly integrate and provide custom connections with almost all ERPs.

Drupal, a highly flexible and extensible content management system, can be a powerful integration platform, enabling smooth communication between ERP systems and other business applications. Its robust architecture and extensive range of modules make it a viable option for bridging the gap between your chosen ERP solution and other systems within your organization. Leveraging Drupal's capabilities, manufacturing companies can enhance their ERP implementation with tailored integrations, ensuring a holistic and connected digital ecosystem.

By following the recommendations outlined in this article and exploring the potential of Drupal open-source development, manufacturing companies can mitigate the risks associated with ERP selection and pave the way for a successful implementation and long-term business success.

Remember, the right ERP solution and effective integration strategies can empower your organization to streamline processes, enhance productivity, and achieve your business objectives in an increasingly competitive landscape.

Is a new cloud ERP on your company’s roadmap?

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