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Have you come to the crossroads of considering changing your ERP system? Have you had your ERP system for many years and feel that it is time for something "new"? Do you know why you feel this way, and what you really want to achieve with a new system?
We are contacted daily by organisations intending to procure and change ERP systems. Some of the most common reasons are that they have completely or partly grown tired of their current vendor and that they feel the current ERP system is not keeping up with technological developments. These two reasons are easy to understand. However, it is often more vague when it comes to "what one wants to achieve" with a new ERP system. Some customers have already gained their own insight into how their business and organisation could develop with the support of a new ERP system, but surprisingly many have no idea at all.
Basically, after many years of consultancy, it can be stated that most organisations have the potential to improve their business, and where the ERP system is an important piece of the puzzle. In quite a few cases, parts of this potential can be realised within the framework of the existing ERP system. That an ERP system is perceived as "hindering" is just as often attributable to "lack of management" on the customer's part as to the system having fallen behind technologically. Far too many organisations lack the capability or insight to continuously maintain their ERP system with the intention of optimising its use. Instead, it is common that the mobilisation the customer made at implementation quickly diminishes after go-live, and everyday life sets in again. Gradually, the added value of the investment decreases. It is not uncommon to meet customers who have had the same ERP system for over 20 years where the setup is more or less identical to how it was configured 20 years earlier, despite the business having experienced major changes and needs over this time. Active and continuous management of the ERP system is the best foundation for achieving a long life for your ERP system and your investment.
At the same time, there are good reasons for many organisations to review their ERP system and how the business needs support going forward. One difference today compared with before, however, is that an analysis of the ERP system today is more about ensuring a long-term but at the same time flexible "platform" of systems rather than analysing the individual ERP system in isolation. The era when people sought "All-In-One" is over. Although in southern Europe it is still common with the view that all processes should be supported by the same ERP system, Nordic customers have come to the realisation that this (often) becomes more of a hindrance compared to having an integrated system environment consisting of "several" applications optimised for their selected focus areas. In some cases, "several" means only 2-3 applications, and in other cases it can concern many applications. Not least in industry, it is common to have very many applications when trying to integrate information flows between the machine-near systems (MES) and other administrative applications.
The important thing in analysing "future ERP systems" is to delay focusing on the individual system and its functional possibilities and limitations. More important is instead to gain insight into how the business will or can develop over time, and on this basis establish a target image of the "character" that the future system support should have. It is not uncommon to conclude that it might involve 2-3 applications rather than 1 application. At the same time, this is a conclusion and choice that must be weighed against the customer's ability to "manage" their systems.
Whether you choose Cloud or On Premise, systems need continuous care to create the benefit you seek. And as noted above, it is not uncommon that the customer lacks the ability for active management, which leads to the customer either refraining from changing systems or choosing a system that requires very little management (while in the long run leading to lower added value). The recommendation is to "think ahead" before rushing too far into procuring and changing ERP systems.
