How to know if your business is ready for ERP software
TECH & AI
material flow , information flow and financial flow .
But as with any large-scale transformation project , ERP brings challenges , the severity of which might be determined by which ERP approach a business takes : traditional or modern .
Traditional ERP solutions involve a single large platform that covers every aspect of a company . A modern ERP , meanwhile , handles the most important business functions , with other parts of the business - such as supply - being covered by specialised software applications .
How to know if your business is ready for ERP software
Hein Pretorious , CEO of South Africa-based digital transformation solutions provider , OnPro , says every business should ask a number of questions before choosing expensive ERP software :
1 . What is limiting your growth and competitiveness ? “ Is it a lack of actionable information across the value chain , and not just within the organisation ?”
2 . What gave rise to your business limitations ? “ Was it bureaucracy , silo-led behaviours , or thinking in terms of efficiency , not effectiveness ? Or maybe all of them ?”
3 . How will ERP solve business limitations ? “ You need to understand what the solution needs to do before deciding what software to purchase .” demand , and develop a strategic view of how a technology platform can serve your business purpose .”
5 . Will the software support new rules and behaviours , or will it be based on how the old system works ? “ The design criteria of the new system must be rooted in the business purpose of the project , and provide fast accurate , actionable information , and enable business agility throughout the organisation .”
6 . Who are the most important stakeholders ? “ Value chain partners , both upstream and downstream are critical stakeholders , and Internal stakeholders include audit , risk , legal and Is the business ready for the project ?
4 . What are the behaviours needed to take the business forward ? “ Think of your place and role in the entire value chain , and how you respond to customer
“ Non-negotiables must be sorted out up front to avoid unpleasant surprises later in the project lifecycle , and scenario planning must come before project planning .”
114 April 2022