A Proven Process for ERP Selection Success
The traditional ERP-As-Capital-Expenditure purchasing results in documented failure rates exceeding 75% – so why go there? Instead, examine the approach of over 400 ERP projects – and replicate the proven methodology of the leading success stories.
Profit From ERP
Why do so many ERP projects fail? Lack of ERP implementation experience? Most companies only replace systems every 10 years? Confusing marketplace? Unaligned incentives? There are dozens of reasons for failure – but there are also commonalities among the companies who really do ERP selection well. Lessons you can adopt to drive ERP success.
You know your business and what it needs. What you don’t know is recent ERP technology breakthroughs and a broad knowledge of multiple ERP programs – and here is where your ERP Selection Consultant is vital – not a salesperson selling you something – an advisor working with you on your goals, your Requirements.
Cost Revenue Models
What is the software price? An important question, yes. But a better question – ‘How will this software affect our bottom line in terms of both cost and revenue?’ Lower system costs, greater efficiencies, increased productivities, growth without overhead – these are the big numbers and the more critical values to understand – even before looking at software.
Knowing the project goals, understanding the payback – this leads us to the particular ERP offerings that excel in areas specific to our business model. Traditional evaluations are led by salespeople working to sell you something. The Profit from ERP approach seeks to uncover, to understand how any ERP would be a success for your business and is more about something working – – instead of working to sell something.
Selling you an ‘ERP solution’ is blowing smoke. ERP is not a solution, it’s a toolset. Your business isn’t static, it’s ever changing. Solving today’s problems with ‘a solution’ is only ignoring tomorrow’s issues. Working with a professional implementation team, building a lasting team of internal and external resources means you’re addressing today’s needs and building the ability to respond to future issues.
Is ERP the last software tool you’ll ever buy? Not by a long shot. It’s the back office, the backbone upon which future growth develops. So two years from now, where will you be? Well, we can tell you what our clients from two years AGO are doing now. The most successful companies realize a huge return on ERP – and then re-invest. If your ERP is paying for itself several times over – why wouldn’t you look at other business process improvements to further increase your returns? If that concept seems even mildly interesting, welcome to Profit From ERP – you’re our kind of client!
RESULT: Cut annual software maintenance by $800,000
WHO: A $25m biotech firm was paying too much for software upgrades and annual maintenance.
PROBLEM: 10 years ago, the only solution was a Tier One option that hadn’t grown or updated since 2006.
SOLUTION: Modern, cloud based component ERP created a higher functioning alternative saving the company $800,000 every year in maintenance and avoiding costly upgrades.
RESULT: Cut time to bid by 400%, which increased win rate by 22%
WHO: A national corporate infrastructure Engineer to Order (ETO) company with $18 million in annual revenue.
PROBLEM: Producing bids with various engineering and sales reviews was agonizingly slow during the critical buying phase of their clients.
SOLUTION: ERP with customized engineering configuration functionality cut time to bid by 400%, dramatically increasing sales efficiencies resulting in a 22% higher win ratio.
RESULT: Sped up implementation by 17% in a highly regulatory environment
WHO: An overseas biopharma firm with an annual revenue of $330 million completed clinical trials for the US market, but lacked the validated ERP controls required by the FDA
PROBLEM: Inexperience with process ERP used for pharma manufacturing, validation attempts kept uncovering flaws and creating re-work for the implementation team
SOLUTION: Fast tracking project plans used repeatedly in past pharma accounts along with careful project management cut implementation time by 17%.
RESULT: 22% sales increase in the first quarter
WHO: A $7m sports apparel company had zero inventory visibility.
PROBLEM: Repeated calls to HQ, hot selling items frequently out of stock, lead time from overseas manufacturer – all resulted in a hit-or-miss season and sales uncertainty
SOLUTION: ERP demand planning identified ‘hot’ items early and accurately forecasted available-to-sell quantities increasing future sales orders and enhanced production planning, dramatically increasing profitability in a short period of time.