Choosing a new enterprise information system (ERP) should be seen as an opportunity to drive your business forward. Instead of asking, “How much will it cost?” ask yourself, “How will it move us forward?” “How many new business models can we develop?” “How many new business opportunities can we pursue?” Below are ten key recommendations, based on insights from discussions with predominantly manufacturing and logistics companies, for modernizing your business information systems.
- View ERP as a Strategic Tool
Do not treat the enterprise information system as just a cost item—something many Czech companies often do. This mindset is typically linked to being at the lower rungs of the supply chain, which usually comes with lower margins and limited budgets. However, I encourage companies to view the ERP system as a strategic tool that drives future growth.
- Learn from the Best
When selecting an ERP, compare your company to your competitors in developed foreign markets, and keep an eye on the latest trends. Don’t settle for what’s typical in the small Czech market. Instead, learn from industry leaders who have already implemented successful systems.
- Think of ERP as a Continuous Investment
Choosing a new ERP system is not a one-off decision but a journey. The first phase usually covers only the core system for many reasons, so plan for future phases. Think ahead about what features and functions you might need as your business evolves.
- Set a Realistic Budget with a Buffer
Be realistic about your budget, especially if your company’s processes and data have been neglected for years. Adding a buffer to your investment plan will help account for unexpected issues during implementation. Typically, you won’t foresee all situations in advance.
- Develop Employees with Cross-Departmental Skills
Look for employees who have a good understanding of both IT and business processes. Seek individuals with language skills and confidence to engage with foreign suppliers or partners. Although foreign suppliers may be more expensive, they bring invaluable experience from numerous projects that local suppliers may not have.
- Think Holistically
Focus on finding an ERP that can support as many of your business activities as possible with one solution. Avoid the temptation to assemble a solution from different parts. The true skill lies in selecting a ready-made system that supports business goals and growth opportunities, rather than building the system yourself.
- Support New Business Models
Choose an ERP that naturally supports new business opportunities like warranty and post-warranty services, product-as-a-service models, remote equipment monitoring, and proactive maintenance alerts. These areas are often neglected in the Czech market but are becoming increasingly important globally.
- Stick to Best Practices
Leverage the “best practices” that come with your chosen system. Don’t try to force the system to fit outdated business processes. Your previous 20 years of experience may no longer be applicable in today’s world. Adapting the system to new practices ensures long-term success.
- Clean and Consolidate Your Data
Clean up your data and store it in one centralized location. Determine which data is essential for managing your business and use it to gain better insights and make informed decisions. Remember, success isn’t necessarily about having the largest investment budget, but about having a deeper understanding of your customers and making quick, accurate decisions.
- Support Cross-Entity Collaboration
Choose an ERP that supports seamless collaboration and data sharing across entities, whether your employees and partners are in the office or working remotely. Eliminate the need for exchanging various file types (e.g., Excel, PDF, Word) and choose a system that centralizes your data, making it accessible to all stakeholders.
If you have any questions or want to explore how Ness Digital Engineering can assist you with ERP selection and implementation, feel free to contact me.
Ivo Procházka
Senior Local Sales Representative
Ness Digital Engineering