Part 3: BUILDING A SUCCESSFUL ERP BUSINESS CASE – (3 of 3)

In this third and final instalment of “Building a Successful ERP Business Case in 3 Key Steps” we’re finally sharpening our pencils and getting to the nib of the issue.

What info to include in your report to successfully ‘green light’ your ERP project!

Note: In part one of this blog series we spoke about the importance of completing the right kind of homework before putting your ERP business case before a decision committee. The primary take-away from this step was to stop generalising about the results of an ERP project and get really specific about its impact on your company. 

Part two, highlighted the importance of identifying at least one ERP champion on the decision committee that will advocate for your project behind the scenes. The key take-away here is to solve your champions pain points with ERP, and then furnish them with all the details and company specific anecdotes they’ll need to advocate on the projects behalf during the decision making process.

See links below to Step 1 & 2 in case you missed them.

Building An ERP Biz Case: Step 1
Building An ERP Biz Case: Step 2

STEP 3: Craft Your ERP Project Case Correctly

Once you’ve done the right kind of research and established your ‘champion’, it’s time to concentrate on crafting your ERP business case / proposal.

The key thing here is to remember your audience, be succinct, and focus on answering one fundamental question – Why Now?

Time and time again, companies decide to stall an ERP implementation because of the imbalance between what they know, versus what they don’t. They know it’s a risk. They know it’s going to be costly. They also know that it’s going to take months of work. 

What they don’t know is whether the rewards will be worth it!

So, admit that there are concerns. Address the anticipated risks (ROI timing / operational disruption / 3rd party integration/ security / etc.), and counterbalance each risk with details on the return.

Articulate the rewards by bullet pointing specific reasons why the project is needed NOW.

For example:

  • We’re all drowning in spreadsheets. It’s causing errors and wasting valuable time (cite examples/facts/figures). With ERP all key data would automatically be pulled through our systems, eradicating the need for spreadsheets and duplication of efforts.

  • The current system is preventing scale and growth. Last month we had to turn away a project because we couldn’t fulfil it. ERP will allow us to improve decision making, giving us visibility on stock flow and labour costs that we currently don’t have.

  • Poor data flow between departments is causing errors (cite examples) and costing the company money (again, examples!).

  • Current [named] competitors/suppliers have the edge over us because….,

  • Customers are sourcing elsewhere because…insert specific facts/examples.,

Clearly answer the ‘What Does Our Company Gain?’ question. 

Cite specific improvements / value that will be delivered through ERP and (again) remember to include specific facts / figures for your company wherever possible.

Examples:

  • We’ll have more competitive advantage because…

  • We will be able to offer more services such as…

  • Decision making will improve because we will have real time information on stock levels, x, y, & z.

  • By getting things right 1st time, every time, we’ll decrease costs, improve customer satisfaction &… etc.

  • An integrated business system will provide us with new operational capabilities to…. (include specific examples).

Next, include baseline information around the potential solutions you’ve identified, but don’t make the mistake of prioritising solution specifications over the reasons WHY you need the solution in the first place.

Taking up your audience’s valuable time with an overload of data on the differences between Epicor V’s SAP V’s NetSuite V’s whatever, will only serve to confuse and augment perceived risk at this early stage of the process.


Answer
the
Question
-

What
Does
Your
Company
Gain?

So, with all that said, inclusions in your ERP business case should include:

  1. Why [insert company name] Needs ERP Now

    Summary of why the lack of ERP is hindering current process and future growth.

  2. Internal & External Factors Driving the need for ERP

    Specific, data driven commentary on both the internal and external factors /pain points driving the need for ERP.

  3. What [insert company name] will Specifically Gain from ERP

    Scope out the project requirements and develop a data driven list of how ERP will improve your company’s specific operations, increase sales channels, improve supplier & customer relationships, and reduce CAPEX / OPEX in the long term.

    Take care to include improvements that will resonate with each stakeholder and decision maker.

  4. Solution Options

    Briefly outline your top 3 – 5 ERP solution offerings. Cite the pro’s and con’s of each solution when set against your core requirements, and include ballpark upfront, recurring and TCO cost estimations.


    Don’t get bogged down in technical data (include this in the document appendix if required) or cut and paste information from the vendors website or sales collateral. Technical data and sales spiel will only serve to clog your plan with information that’s irrelevant to this stage of the process.

    Think about ranking each solution against the same set of criteria so that you, and your audience, can easily discern differences. Make sure to rank for costs, core, and bonus functionality, references, support, and the providers local or global reach (as this will be important as your company grows).

  1. Next Steps

    List the steps needed to drive the project forward and make sure to include a proposed timeline. (Note: I’ll be posting a blog soon with recommendations on this) 

  1. Why Now (Conclusion)

    Conclude with a detailed list of the improvements and benefits that the ERP implementation will have on the company, making sure to include a short-medium-long term timeline, and improvements within each of your stakeholder functions. 
  1. Appendix
    To include your research sources, solution specifics, etc.

Written by Leeann Matthews, June 2022

Step 1: Start with the Right Kind of Homework
Step 2: Gather Your Champions
Step 3: Craft Your Case Correctly
Contact Aspera For More Information

Part 1: BUILD A SUCCESSFUL ERP BUSINESS CASE IN 3 KEY STEPS

If you are struggling to get budget for an ERP project within your company, read on.

This 3 part blog series cites key advice that has proved successful for your peers, irrespective of whether you work in the manufacturing or distribution sector.

Over the years, I’ve had countless conversations with managers that need ERP in their business but can’t get a project off the ground.

Interestingly, it’s not usually the cost of a project that is stalling progress, most ERP projects get benched because of deficiency in two primary areas – stakeholder buy-in, and time.

Simply put, if those with the power to green light an ERP project don’t understand the company-wide value of it, you will never get budget. And, if you can’t articulate why now is the perfect time to start, decision makers will keep kicking that ‘can’ down the road, letting other priorities override progression on a project that you know would positively transform the company.

If that sounds familiar, and you’re keen to learn ways to overcome these issues and get the green light on your ERP project, read on. This blog series cites the 3 key things you need to do in order to build a successful ERP business case.

Step 1 (below): Start with the Right Kind of Homework

Step 2: Gather Your Champions!

Step 3: Craft Your ERP Business Case Correctly

Lets get started. 

STEP 1: Start with the Right Kind of Homework

Writing a business case that states you want to implement ERP in order to boost productivity / automate tasks / decrease costs / etc., simply doesn’t cut it anymore.

These terms are bandied around so frequently that they’ve become generic ‘noise’.

To put it bluntly; you could state, “we need to implement ERP to boost productivity, drive efficiencies, and increase competitive advantage”, but your decision-making audience only hears “yada, yada, everyone wants budget for the same thing, yada!”.

To overcome this, stop generalising about the results of an ERP project and get really specific about its impact on your company.

Take time to identify and list all the areas of the business that will be affected by an ERP implementation (finance, operations, manufacturing, warehousing, etc.).

Identify the key people in these areas (i.e., the people that the business can’t afford to lose), and then put your investigative hat on in order to gather details from them about:

  1. Their specific pain points & bottlenecks (including facts and figures wherever possible),
  2. What they’ve heard competitors are doing better,
  3. What improvements they know customers/suppliers are looking for, and
  4. What they’d love to automate in order to make their everyday job more enjoyable/easier/more productive.

This information is golden for two reasons. Firstly, its coming directly from key staff that are integral to the business. And secondly, it relates specifically to your company and its current operations, so decision makers can’t ignore its impact or pretend that the information doesn’t relate directly back to the bottom line.

For added impact, consider compiling a short video (simply taken with your phone) showing peoples responses to the question, “What would you most like to automate to make your job easier?”. The visual impact of watching staff / colleagues / friends talking about what would make their life easier is hugely powerful. And humanising the impact of an ERP implementation could go a long way to getting sign off on budget.  

Next, you’ll need to identify at least one champion in senior management (or the Board of Management) that will advocate for your project.

Read STEP 2 of this blog series for tips on how to identify an advocate and get them on-board. 

 

Written By: Leeann Matthews, June 2022
Step 1: Start with the Right Kind of Homework
Step 2: Gather Your Champions
Step 3: Craft Your Case Correctly
Contact Aspera For More Information

Successfully Select ERP Software in 8 Simple Steps

8 Steps to Choosing your Ideal ERP Solution

Whether you are looking for your first Enterprise Resource Planning (ERP) system or upgrading from an existing system, the ERP selection and implementation process is a long-term strategic decision that your business will live with for years to come. Naturally, you want to get it right!

To support you on your ERP journey, this short white paper outlines the 8 essential steps you’ll need to complete in order to choose a solution that fits your current and future business needs.

Additional questions? Get in touch.

Eight simple steps for a successful ERP system selection.

Step 1: Evaluation

Form an evaluation committee that includes representation from the key stakeholders impacted by the implementation. This committee should include top management, functional experts, and end-users from the different departments within your company. Consider hiring neutral, external consultants to assist in your evaluation. Throughout the selection process, end each step with a consensus of all members to gain enterprise-wide acceptance of the final ERP system.

Step 2: Assess Your Options

Assess your existing business processes and the scale of your operation, so you can determine what’s being done well. Identify the gaps or key challenges that can be solved with the help of an ERP system. Take a futuristic approach, determining what solution fits your current best practice and future requirements.

Step 3: Establish Criteria

Develop your selection criteria to evaluate the available solutions. Criteria can include features, price, platform, and anything else your committee deems important. Group the criteria according to importance to your business—i.e. very important, important, and less important. Assign a score to each to make the evaluation easier.

Here are some example criteria:

  • Industry expertise—How well does the ERP vendor understand your industry? Does the vendor offer industry best practices or pre-defined processes that are generalized or horizontally focused? ERP solutions should at the very least address the critical business requirements specific to your industry.
  • Total cost of ownership—Determine the long-term TCO for hardware, software, and support—both before and after implementation.
  • Multisite operations support—If you need to collaborate with multiple operations, then ensure your ERP vendor can support multi-site operations. Can your ERP vendor support all your locations?
  • Customer support—Does the ERP vendor have its own in-house Support Team, or does it outsource? You’ll gain the most out of your investment if you have access to a customer care center that can answer your key application and technical questions, solve your complex technical or software related issues, and advise on best industry practices.

Step 4: Schedule Consultations & Demonstrations

Arrange consultations with both a sales representative and product expert from as many different ERP vendors as possible. Discovery calls and demonstrations will provide you with better insight on the vendor and its solution than if you were to rely solely on brochures and sales literature.

Step 5: Create a Shortlist

Shortlist three to five ERP solutions that best meet your business needs. Your discovery calls will have helped you eliminate the solutions that are poor fits.

Step 6: Make Contact & Build Trust

Contact the vendors of your shortlisted ERP systems to arrange additional presentations and product demonstrations with key stakeholders. Identify whether the vendor is one with which you want to develop a long-term relationship.

Step 7: Prepare Questions that Address Your Concerns

How each vendor responds will help you determine the best fit for your company.

Step 8: Check Vendor References

Visit and consult companies where the ERP system has been implemented. Find out if the system is working as expected and what the company likes or dislikes. If there were issues, then determine how the vendor resolved them.

Conclusion

Your evaluation committee should now be able to select an ERP solution based on how well it met your selection criteria, how it performed during the demonstration, and how the references checked out.

Finally, with your selected ERP vendor, spend the time to scope the entire project from start to finish. Work with your ERP vendor to map your critical milestones and chart your course to success.

 

Successfully Select an ERP System in 8 Simple Steps

An enterprise resource planning (ERP) system is a series of software applications or modules that collects data from your sales, purchasing, finance, inventory, supply chain, manufacturing, and quality functions into a common database. By unifying your enterprise, your company can more easily share information, coordinate activities, and collaborate.

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