Acquiring an ERP system is a large investment for any company and, even more so, when choosing to develop custom business software solutions. A return on your investment (ROI) should be worthy of the time and money spent on the project.
However, company owners play a much bigger part in the results than they may realise. They can have a direct impact on the ROI of the ERP software and make strategic decisions, which will boost the returns to the maximum. Here are some of our key tips:
Establish clear objectives
The implementation process of a business management software should be clear and structured to achieve optimal results. So, the first step should always be establishing specific objectives for this project. These goals could be anything, from optimising operational efficiency and improving ecommerce inventory management, to reducing costs and increasing profitability. It will depend on the company and its individual needs.
However, the most important part is making sure that your objectives are, indeed, measurable. Otherwise, how will you know if and when you've achieved them after putting all of that time and effort into an ERP programme? Your goals should have specific metrics, which can be compared prior and after ERP implementation. For instance, if one of your aims is to increase the efficiency of your order processing, you could calculate the current order processing time and see how it reduced with the help of the software.
Establishing clear objectives will not only help you measure the ROI of ERP software better down the line, but also give you a comprehensive list of requirements that your chosen business management programme must meet.
Pick the right ERP system
Choosing the right ERP system for your company is a process that requires careful consideration. If you rush into it with the wrong or the cheapest option, it might end up costing you a lot more later.
Say it turns out the software does not have functionality that you will need within two years of implementation. Your options would then look something like this: a) ERP migration, which costs extra time and resources again; b) expensive ERP customisation (if the software supports them); c) keep using incomplete solutions, which is not optimal in terms of business efficiency. This scenario can be avoided by choosing a software based not only on your needs now, but also taking your long-term strategy into consideration.
Here are some key steps to consider when picking your ERP software:
- Conduct a thorough business audit with your needs and pain points;
- Compare multiple systems based on their features, pricing, and compatibility with your business processes;
- Research the software’s reputation (customer reviews), availability of official support or implementation partners, and resources / documentation;
- Consider the scalability of the software: How easy is it to add new features? Is the software customisable? How does it align with your long-term growth plans?
Find the right ERP partner
If you decide to use an ERP partner for your implementation project, this decision should also be well-thought-through.
Although you’ll want the project to be as cost-effective as possible, money should not be the primary reason of choice. Make sure that you pick a reliable and trustworthy partner that offers a transparent implementation roadmap with clear project stages and deadlines. Not only that, finding someone with previous experience in your industry or type of business will always be an advantage.
Remember, if something sounds too good to be true, it probably is. Cheap, fast, and high-quality is rarely possible in the majority of ERP projects, particularly for larger companies. Most of the time, you will be choosing two out of these three qualities.
Assign a dedicated project team
Your involvement is incredibly important in this project, even when working with a third-party implementation partner. Having a dedicated team or an ERP manager for this project on your end will ensure that the results are as expected.
Your project team should be doing regular meetings and reviews with your software partner, testing the effectiveness of the features that have already been installed, as well as discussing the expectations for those that are planned in the next stages. Their job is to check for any issues and make sure the software is running smoothly before it goes live. Ideally, you would assign area experts to work on specific parts of the system (i.e. your accountant should be approving the accounting tools of the software).
Prioritise employee training
Your employees are the end users of the ERP software. So, making sure that they are on board and well-trained is of paramount importance.
Change management will be one of your main challenges, particularly if your company is older, with processes that have been set in stone for many years. Some of your staff will not take well to the huge changes that an ERP software brings to the company. Besides learning new ways of doing things, certain workflows will undergo a complete makeover in a bid to optimise them.
So, your best bet will be getting started as early as possible, familiarising your employees with the new software and the benefits of it. In-depth software training will be absolutely key, ensuring that your team knows how to use the system as productively as possible. This, too, should be done way before you go live with the new ERP, to avoid costly delays and wasted resources.
Continuously update and improve
The initial ERP implementation is a significant step towards the optimisation of your business. However, to truly make the most out of your investment, you should continue to improve the software over time.
As your company grows, so do your software needs. Once new pain points or cost-saving opportunities arise, you can implement new features to further optimise the system. Post-implementation audits and regular assessments of the system’s performance will not only help you find areas for improvement, but also measure your ROI more effectively.
What’s more, most ERP systems will offer regular updates for improved performance and security, so implementing those periodically will keep it up to date.
Ready to maximise your ERP ROI?
Via laurea is an official Odoo partner in Finland and Lithuania. If you think Odoo is the right software for you, we can help you every step of the way - from full business audits and workshops, to Odoo implementation, customisation, and support services. Together, we will ensure that Odoo ERP is more than worth your time and investment!
Book your first consultation and our business analysts will be happy to answer all of your questions:
