How to choose ERP system in Project Engineering companies?

A good ERP is more than a good software! In any organization, ERP works as a tool to connect people, processes, and resources in such a way that business process become seamless, fast, and transparent. The foundation of any organization lies in its database. It follows bottom-up approach. An ERP follows hierarchy of processes initiated by data standardization.

Choosing correct ERP and implementing it at right time may make difference between two companies having similar business potential. Before choosing any ERP, an organization is supposed to do enough homework. It must be looked as packaged software and not as ‘Inventory management tool’ or ‘Accounting software’. Following are few leading questions; every organization should find answer before engaging any outside vendor for ERP development and implementation:

a. What is purpose of ERP implementation?

- If purpose is to focus specific area as ‘Inventory management’ or ‘financial management’ then standard products are available in market at cheaper rates.

- If purpose of ERP is to cover end-to-end business processes, then it must be customized as per your business processes. It must be treated as long duration project and must have dedicated internal team engaged in the same.

b. Whether organization will handle this change?

- ERP implementation partner never succeeds with incapable internal team.

- Organization must have core team of domain experts and passionate teammates who will ensure implementation of ERP.

- Internal team always find better solution on any problem than ERP implementor. As an outsider, ERP implementor may lead internal team towards better solution.

c. How much time do you have to invest in ERP implementation process?

- ERP development and implementation is time consuming, tedious, and tiring process.

- It includes database entries, data standardization, ongoing alterations, multiple trials, and continuous improvements to keep system aligned to organizations growth and goals.

- Organization may outsource software development, documentation, and testing, but end-user must be involved in process as he/she is supposed to handle the process after stabilization of the system.

d. Do you have internal processes mapped properly?

- ERP handles business processes. Primarily every ERP system offers typical flow of transactions. However, it is important to customize it as per your processes for ease of transactions and better results.

- Internal process mapping is one of the most important steps in ERP implementation. If you can vouch on the clarity of internal processes and if it has been documented well, then you will have better projections of ERP project on efforts, time and money front.