How to Pick the Right ERP

Is your business growing but struggling with outdated tools, systems, and processes? ERP systems can help streamline operations and boost efficiency. But, ERP, or Enterprise resource planning, is more than just adding new technology. It requires careful planning and proper change management. 

When is the right time to implement an ERP system in your business? How do you get started, and how do you help your team transition smoothly?

In this episode, Allison Cummins and I discuss ERP implementation and why change management is a major part of it. She shares how growing businesses can benefit from ERP systems to streamline operations and how to ensure a smooth transition for your team.

Allison is the Founder and CEO of Blue Outcomes LLC , a boutique consulting firm that specializes in Project and Change Management. She is a trusted advisor for growing companies and is known for bringing transparency and accountability to business transformations. 

We discuss: (timestamps)

03:28 When is the right time to consider an ERP system?

05:04 Revenue size for ERP implementation

06:18 Big ERP players vs. smaller systems

07:43 The differences between major ERPs (SAP, NetSuite, Epicor, Microsoft Dynamics)

09:49 Transitioning from smaller ERPs to larger ones 

11:55 The cost of switching to an ERP

15:53 Preparing data for ERP implementation

18:34 Data types to include in an ERP system

20:49 How far back should data go in an ERP system?

23:59 Connecting different data systems in an ERP

25:17 Common issues on the people side during ERP implementations

29:44 Preparing staff for ERP implementation 

32:16 Stories of successful and unsuccessful ERP implementations

36:27 Causes of scope creep in ERP projects

40:47 Actionable steps for starting the ERP process

Sample of what you will learn:

Preparing data for ERP implementation

Properly preparing your data is what can make or break a successful ERP implementation. Allison recommends starting early to address data quality and to make sure the transition will be as seamless as possible for you and your team. 

1. Assess and Cleanse Your Data

• Identify all the key data sets that are important including accounting records, sales data, customer information, product details, and vendor records.

• Cleanse your data by removing duplicates, correcting inaccuracies, and consolidating records. For example, entries like "John Smith" and "Jonathan Smith" should be combined if they refer to the same person. Even if you have the best ERP system, if your data is bad, it won’t work out in the long run.

2. Data Preparation and Migration

• Prepare your data for migration into your new system by reformatting it so that it is compatible with your ERP system. You might have to use templates provided by your ERP partner as well as convert data into spreadsheets or other required formats.

• Make sure that you don’t miss anything and that all relevant data is accounted for, including hidden or overlooked sources like departmental spreadsheets or legacy systems. You need to integrate all of that information into your new ERP so there is continuity.

• Give your team enough time and resources to handle all the data preparation. Let them know how data quality is very important and support them through the steps needed to maintain it throughout the migration process.

3. Types of Data to Include 

And all other operational data that you use in daily business processes, such as specific departmental manuals or resources and research documents.

Accounting data including financial records, ledgers, and transaction history.

Sales and customer data like customer profiles, purchase history, and sales orders.

Product and vendor data such as your inventory levels, supplier details, and procurement records.

Here are a few relevant quotes from the episode:

"People will make or break any ERP solution implementation because most of the time, I'm gonna be honest, it's the lack of communication from the leadership teams." - Allison Cummins

"The messaging has to be consistent throughout. Oftentimes, the change, like the communication, is coming from leadership and then it gets like 1 level down and it just stops." - Allison Cummins

"Start documenting your business processes. That is the first step to really understand what your business does." - Allison Cummins

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