Thursday, 20 August 2009

By Adam Prince, Senior Director Product Marketing, Epicor Software Corporation

1) Think Long Term

DO: An ERP system needs to grow with the company and business plan. To understand what the next ten years will bring for manufacturing, and what impact it will have, look at the last ten years and double the rate of change. Technology will provide information to the knowledge worker at any time on any device, and it will have to adapt to future business and technology strategies.

DON’T: Go for rigid decision-making that lacks flexibility to adapt to change. History is the best predictor of the future and vendors involved two decades ago in the early development of “computerized” manufacturing systems based on sound manufacturing principles will provide a more solid choice.

2) Select a Proven Solution

DO: Somewhere between concept and delivery, many good software ideas lose focus on the most important principle of providing value as perceived by the customer. Are technologies evaluated and employed based on their relevance to the needs of manufacturers and distributors? Leaders in the ERP industry place a higher emphasis on providing critical functionality needed by their customers. Bottom line, select a solution that is proven – it works and adds value – while supporting business growth, new operating methods, market expansion and strategies of the future.

DON’T: Implement “vanilla” systems; these are a commodity with merely the same functionality as every other system on the market. The best systems, as their customers will attest, include capabilities that are essential for manufacturers looking for new ways to be more competitive.

3) Replacement Know-How

DO: Replacement know-how means having experience replacing almost every tier-one and tier-two system for discrete manufacturing and light distribution, as well as home grown systems. From systems for the largest Fortune 500 companies, to systems for mid-sized and the small manufacturers, look for the vendor that has replaced them all, for businesses with both single and multiple packages.

DON’T: Choose a “we do everything” vendor. When ERP is practically all a vendor does, it is a better choice than one with divided, unfocused interests and business units vying for resources.

4) Eliminate Guesswork

DO: The success of your new ERP system depends on two dimensions: the length of time the implementation takes and the amount of business change and value delivered. Quick advantage occurs when the implementation is fast and results in high strategic value. A good implementation approach removes the worry about a hard system cutover, ensures a faster and more effective transition, and delivers a shorter time to return on investment.

DON’T: Rely solely on implementation time as a factor to success. While the speed of setting up an ERP system is key, it is not the only factor that determines the success of the implementation. Along the strategic value dimension, effectiveness and a worry-free process rounds out the three implementation critical success factors.

5) ERP Systems Are Not One Size Fits All

DO: Whether you are modelling currently effective processes or reengineering and improving ineffective processes to support new strategies, five key elements of the solution’s design give it the ability to create a tailor-made solution for your company. These five elements are: execution of the implementation roadmaps, system settings, tools to customize your system, advanced technologies and portals.

DON’T: Use a “cookie cutter” approach to setting up your ERP system. No two businesses are alike.

6) Manufacturing and Distribution Expertise

DO: The right ERP vendor will be equipped to offer you the kinds of support services and tools that allow you to successfully solve your most difficult business challenges, rapidly deploy applications and maximize your return on investment. Look closer to verify that the software provider maintains a highly skilled work force and industry experienced owner-managers that assure their long-term ability to serve your company into the future. Do all levels of people at your vendor understand manufacturing, from programmers to executives?

DON’T: Skimp on expertise. The number one weakest link in IT implementations is consulting expertise, so make sure a vendor’s staff of design professionals, systems analysts, technical, manufacturing and distribution consultants, and financial experts, understand manufacturing and distribution inside and out. In addition, they need to know how to provide you with the most cost-effective software solutions.

7) A Strategic Approach to Technology

DO: The greatest achievement of the right vendor is that their ERP product is still current today, and they remain visionary in product development. Demand a foundation that will transition your company through technology curves. In the long run, information technology will not keep you in business. It is what is happening on the manufacturing floor, in customer service, and out in sales that pays the bills and turns the profits. That makes the technology factor a strategic, rather than a strictly IT, decision.

DON’T: Rely solely on the technology to determine the success of your ERP solution. Although technology is clearly an important influencing factor in any ERP selection process, history continues to show that some of the best ERP results occur when technology specifications are determined by what is required to support critical business needs. That is the essence of a resilient approach to technology.

8) Scalability

DO: If this is to be your last ERP system replacement, investment protection should be the cornerstone of your software provider’s product development strategy. Have they maintained a continuous history of growth while providing upgrade paths to their customers? Emphatically embrace this philosophy and make sure your vendor pledges to continue it into the future.

DON’T: Forget potential software limitations. Check to be sure there are no limitations on the software's ability to accommodate small and mid-sized high growth companies or large (Fortune 500) corporations with multiple divisions. A business is designed to grow and its ERP system should grow with it.

9) Get to Know Your ERP Vendor

DO: Central to any vendor’s mission is the commitment to your long-term success. This commitment is the motivation for the quality technical support services offered to clients. To address a wide range of technical support needs and system skill levels, look for a comprehensive support program. This total support package is designed to provide you with the in-depth product knowledge and skills you need to learn how to use the system most effectively in your unique manufacturing environment. Most importantly, the support program includes access to valuable resources, services and information that will make the most of your every encounter with your vendor.

DON’T: Look at just the solution. Quite often, manufacturers do not get to know the people and culture of their ERP supplier before making the selection decision. By not understanding the people and culture of the vendor, you might not know how customer-oriented your supplier is and how much information they provide to those on the front line.

10) Integrity and Dedication

DO: Many ERP software providers have come and gone, and their customers have suffered. To avoid being in that position, look for consistent growth and strong financial stability, adherence to sound corporate and fiscal management practices. It is these strengths that will enable the right partner to be a dominant force in the industry for years to come. Consistent growth and profitability maintains and improves the ability to provide exceptional support and technology advancements in step with your developing needs and the needs of the market.

DON’T: Work with a dishonest vendor. Nothing speaks more to an ERP vendor’s level of integrity than its promise that it will not recommend a solution until it understands enough about your business to know it is a good fit.

+1 for luck) ROI - Of Course!

DO: ERP consistently delivers the highest ROI for companies of all sizes. Look for vendors with a proven track record of delivering solutions that streamline, integrate, automate and improve manufacturing operations.

DON’T: Overlook the factors that will give you the best return on investment. Many ERP software providers have come and gone, and their customers have suffered. To avoid being in that position, look for consistent growth and strong financial stability, adherence to sound corporate and fiscal management practices. This is one more way to take the worry and guesswork out of your decision to select your best, and last, ERP system replacement.