How you ever wondered where and when to start the ERP process? If so, you have come to the right page.  

In this series which we call as an ‘ERP Guide’, we help small and mid-sized businesses globally to evaluate the ERP process both internally and externally with a set of standard rules, which if followed can be fruitful to your long-term operational success.  

First phase of any ERP evaluation should be “Goal-Setting Phase” – 4 steps to achieve it: 

1. Set a broader goal  

You can be a small business or a start-up, first step is understanding what you need in your organization and set a high-level goal to chase and achieve them. The goals at this stage need not be specific, they can be one of the below:  

• Streamlining process  
• Ensuring effective flow of communications 
• Improving customer engagement  
• Efficient operations  

Set KPIs to measure the success of your ERP implementation and also ensure the goals are in-line with your business goals. 

1. Pick a Dream Team:  

Pick the right team, when we say right it means the people who understand the depth of operational processes, have a knack for technology & are open to change in the organization. This team is what we call the “Dream Team” and they will be crucial to the success of your ERP implementation process. As a rule of thumb, follow these tips to choose the best team: 

– Should have representative who understands each department/location process 

– Choose a member based on their competence and not necessarily job title  

– Select one among them as the project manager who can drive the entire team 

The selected team should be in alignment with the broader goals set to achieve the ERP implementation. 

1. Brainstorm:  

Discuss the current issues and document the same. You can also start by making a list of requirements & categorizing them under:  

• Category A – ‘Must-Have’ for addressing current system issues & improvement of processes. Example: Managing multiple addresses in customer master maybe a current system issue, sending an acknowledgment to the customer for orders can be an improvement of process. 
• Category B – ‘Optional-Have’ can be items which are important but not a must. Example: Sending an internal alert message in MS Teams for improved communications.  
• Category C – ‘Nice-to-have’ list for growth plan & expansion. Example: Integrations with E-Commerce, Banking, Retail platforms.  

Brainstorming sessions are mostly to get the opinion and honest day-to-day review of each department’s pain points. Selection team need not necessarily be the management team as this approach gives power of process ownership to the team and thus helping them adapt to the digital changes when its time for training. The list your team prepares will be the one which determines the choice of ERP software so it is essential to have comprehensive list of items. 

1. Documentation:  

After the first session of brainstorming, create documentation to arrive at a list of specific pain points to be addressed in each department. Being prepared is the best way to beat any odds thrown at you as a team. The documentation should be exhaustive and self-explanatory. A few tips for creating effective documentation: 

• Focus on ‘what’ is required and not ‘how’ at this stage 
• Predict the ‘needs’ of your organization rather than focus on ‘wants’ 
• Use a high-level process flow map, free tools like Bizagi can be helpful 
• Split the broad goal list for each department to ensure alignment of common goal 
• The “Nice-to-have” list items should not determine the choice of system 

• Create clear process ownerships as they will validate requirements 
• Review multiple times and improvise the document with all the feedback 

Finalize the document to share with desired vendors.  

Now that we have seen what is required to kick-start the process, we also wanted to mention the “Do-Nots” for eliminating common mistakes: 

• Do not engage vendors at this point 

• Do not share mis-aligned goals (between company & teams) 
• Do not share your WIP (Work in Progress) documentation  
• Do not miss the pain points or what we call the ‘need (Category A)’ documentation  
• Do not expect 100% coverage of the points listed in any solution  
• Do not de-rail the goal or move your requirements during the next steps of process 

The Do’s on other hand are easy at this stage,  

• Do share the detailed documentation of your goals and needs  
• Do follow the phased approach to ensure successful ERP implementation  

Well, we believe that “WELL BEGUN IS HALF DONE”. Now that you are prepared and aligned to take this process to the next phase.