Introducing digital technology into your own company is anything but trivial and represents a challenge for many businesses. Introducing an ERP system, in other words a software solution for enterprise resource planning, requires a great deal of preparatory work before the actual digitalisation of processes and workflows can begin.
But first: why an ERP system at all? An ERP system brings together real time data from every department in one system and so provides a comprehensive overview. That makes it considerably easier to plan, steer and monitor the relevant business processes with focus. Trends and patterns in those processes and among stakeholders are recognised and potential problems become visible early. This day to day transparency across all areas of the business allows those responsible to decide at the right moment on a solid data basis.
Introducing an ERP system
Production, purchasing, sales, HR, accounting, quality and compliance: ERP can map all of a company's business processes. In one integrated system, management receives all the important information quickly and purposefully at a glance. That brings a high degree of transparency and certainty in acting and planning.
When an ERP system is introduced, the overall process should be analysed, restructured where necessary and the workflows aligned with one another, so that the system delivers the desired results and runs smoothly. Should proven processes and procedures be carried over or changed? Defining the process steps is about examining every important detail, so that the company's processes are mapped coherently and efficiently in the system. That means talking to the people who work in the respective departments and know the requirements.
Designing an ERP means entering into dialogue, looking beyond departmental boundaries without losing sight of the necessary detail in individual steps. Selecting, designing and introducing an ERP system is not about an off the shelf product. It is always about individualised solutions, so that the company does not work according to the processes of the system, but the system works according to the processes of the company.
What does it offer the mid market? An ERP system ...
... supplies real time data from every department and so provides a comprehensive, up to date overall picture. This transparency makes it easier for those responsible to plan, steer and monitor business activities with focus.
... identifies trends and developments and so recognises opportunities and risks early. An important basis for well founded decisions in the individual areas of the business.
... noticeably increases efficiency and effectiveness, because central data management in one system allows processes to be automated that previously ran manually or with manual bridges. The flow of information is improved overall and media breaks are eliminated.
... can grow with the company, provided it was selected to match the company goals and is scalable accordingly. It is important to choose a system from the outset that is aligned with the company strategy and can evolve, without being over or under dimensioned from the start.
... is a central building block for regulatory conformity in the company. The transparency safeguards compliance and monitors the systematic observance of rules and guidelines.
... forms a solid basis for the value creation processes in manufacturing and services, and steers customer relationship management and delivery reliability.
Alongside all the advantages and opportunities an ERP system offers, there are of course some challenges too. The focus is on selecting the right system as the critical success factor.
Which system is the right one for my company?
ERP systems consist of various modules, and there are large differences between the many systems the market has to offer. That is why THE MAK'ED TEAM draws on its own database when making a selection, one that shows the differences between the systems and so makes it easier to find the right fit for each company. The ERP system has to match the individual requirements of the company. Those requirements arise from the company processes, which in turn are connected to the business model and the industry, but also to the size of the company, the number of its sites and its international business activities. The scope of the required functions follows from that. In one case an industry specific solution may meet the process requirements in full, while in another the same industry solution does not map the company processes adequately or cannot meet the compliance requirements.
The point is therefore to prevent an ERP system from destroying the company's processes and obstructing workflows. Otherwise the positive effects of an ERP implementation cannot be realised.
This aspect has to take priority for one reason alone: employee acceptance depends on workflows actually improving.
Accompanying change professionally
Anything new and unfamiliar can quickly meet resistance among employees. In addition, introducing a new system always means an extra burden for them. Projects of this kind have a good chance of success when they are planned and steered professionally. Active project management is the key. The planning already takes account of the changes the company and its people will face and how the degree of change should be handled. Ideally it is always borne in mind that introducing software is not in itself digitalisation. Only the active shaping of processes, the necessary organisational development and the associated people development turn a software rollout into a successful digitalisation project.
Communicating the aim of the project to employees and engaging constructively with possible objections from their ranks are key factors in managing change. Only in rare cases will full change management be required. On that basis all accompanying measures are developed in order to guide employees positively through the change and to reach the defined project goals.
With the right ERP system and professional implementation, various business processes can be integrated and bundled in one central system and a more efficient way of working can be established across the entire company. THE MAK'ED TEAM accompanies and advises companies with experienced specialists on the design, selection and introduction of an ERP system. THE MAK'ED TEAM is a vendor independent expert with broad knowledge of a large number of the ERP systems available on the market.
You can find more about digitalisation and more information about the implementation of ERP systems here.
You will also find checklists and case studies on introducing ERP systems and other digitalisation topics here.
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