ERP implementation in SMEs – a constant challenge

When medium-sized companies decide to introduce new ERP software today, the motives responsible for doing so are often the same. They result from the realisation that the previous solution can no longer cope with the increased requirements. Before companies introduce an ERP, proper planning is most important. It is advisable to call in an expert to support you in ensuring a smooth process.

Reasons for ERP system implementation

Important reasons for this can be the following points:

  • The reporting system does not, or no longer sufficiently, provide figures that guarantee the transparency necessary for corporate and process control.
  • The company is expanding, new subsidiaries are being added at home and abroad, which have to be consolidated within the framework of the consolidated financial statements and bring their own requirements for the ERP system.
  • An ever-increasing number of business transactions brings the previous processes to the edge of their capacity or even beyond.
  • The complexity of business processes is increasing, driven, among other things, by the ever greater variability of products and by increasing networking with supplier and customer processes.
  • The previous ERP system is at the end of its life cycle: maintenance is becoming more and more costly, there are many in-house developments and the master data quality has deteriorated considerably over the years. A loss of know-how is imminent if all the original employees are no longer in-house.

ERP Introduction Procedure Model

Once the decision has been made to purchase a new ERP system, a company faces a number of demanding challenges, which is why it is important to systematically answer the following questions:

Which ERP software solution is best suited for the company? Weighing up these questions are, for example, the technical requirements arising from the business operations, the costs of acquisition and commissioning. The market penetration of the system solution must be included in the considerations for investment protection.

Which IT system house should carry out the implementation? The associated questions relate to references with similar customers or customer environments in the SME sector, to project and implementation methods and, last but not least, to costs. It is often difficult to compare the offers.

How should the implementation contract with the system house of choice be structured technically?

There are dangers lurking here, as many providers make favourably priced offers that transfer a number of service obligations to the customer. If these are too extensive, the risk increases that in the course of the implementation there will be additional orders which will make the project considerably more expensive. F&P do not provide any advice with regard to the legal form of implementation contracts. We are happy to put you in touch with law firms that specialise in this area.

How should the implementation project be planned? Now the foundations are laid that are necessary for a successful project. These include the most important milestones, the clear regulation of responsibilities, the provision of sufficient resources for the entire duration of the project on the part of the company. The change process, which prepares the organisation for the upcoming changes, must also be designed.

How should project controlling be designed? A precise definition of the deliverables or work packages must be made as well as the determination of key figures and metrics. It should be possible to reliably reflect the respective work status of the implementation project.

How can project crises be managed? In this context, it is about the necessary competence and anchoring of project management in the company and about risk management instruments to be defined, which can be relied on in project crises.

Are you looking for an interim manager or consultant with high expertise, to lead your ERP implementation to success?

Contact our contact person Lars Gerdes, Response guaranteed within 48 hrs

ERP introduction in medium-sized companies

An ERP implementation in a medium-sized company often has similar complexities as in large companies, but has by far not the corresponding resources of project teams or budgets there. The constant challenge is therefore to manage the high complexity of the implementation efficiently and effectively with the least possible use of resources, without suffering shipwreck in the magic project triangle of costs, deadlines and goals.

  • Is your company already well prepared for the introduction or change to a new ERP system?
  • Or is your current project on a critical path?

F&P offers assistance in all phases of ERP implementation – from the selection of suitable providers to successful project completion! We provide you with seasoned and mid-market oriented managers for ERP project management, who not only create implementation-oriented concepts and advise you, but can also take on interim tasks. Our interim managers have extensive industry know-how and have gained valuable experience in the preparation, planning and implementation of ERP projects in their professional careers both in application companies and in consulting firms.

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F&P ERP Support

We bring you on eye level with your software implementation partner! We help in crises and get the project back on the road to success! We offer you a health check of your ERP project with clear recommendations for action through the Project Quick Scan and ensure a successful implementation of the ERP system.

Feel free to use our contact form to get in touch with us or give us a call. Our experts will then be happy to clarify open questions with you personally and assist you with project management

Tip: Read more about successful F&P AG projects in our case studies!

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