Building a composable Enterprise Resource Planning consulting strategy for long-term success involves taking a modular and flexible approach to your ERP system. Here are some steps to help you create a realistic composable ERP strategy:
Step 1: Understand your business requirements
Identify the specific needs and goals of your organization. Don’t follow the “one-size-fits-all” approach when it comes to running your business. What works for your competitor also may not work for you. Identification of holistic goals is the first step toward achieving guaranteed success.
Determine what functionalities are essential for your business processes. Simply saying that you want the business to opt for Digital Transformation services is a very broad spectrum; you need to break it down to the absolute must-haves.
Consider future scalability and growth plans. You may not have the capability or capacity to reach your ultimate goal right now but that shouldn’t stop you from figuring out how scalable your business is.
Step 2: Embrace a modular approach
Select an ERP platform that supports modularity and allows adding or removing components as needed. A modular ERP platform provides the advantage of customization and scalability. It allows organizations to select and implement only the modules or components that are necessary for their operations, rather than adopting a one-size-fits-all approach.
For instance, if a company decides to expand its operations to include e-commerce, a modular ERP system would allow them to add an e-commerce module to handle online sales, inventory management, and order fulfillment, without having to overhaul the entire ERP system. Conversely, if a component becomes obsolete or no longer serves the organization’s needs, it can be removed without disrupting the overall system.
Avoid monolithic ERP systems that are difficult to customize and update.
Step 3: Focus on integration capabilities
Look for ERP systems that have strong integration capabilities to connect with other business applications and systems. Strong integration capabilities allow the ERP system to exchange data, share information, and synchronize processes with other business systems. This integration can occur through APIs (Application Programming Interfaces), web services, or other standardized protocols that enable seamless communication between different software solutions.
Choose solutions that support APIs and have a robust ecosystem of integrations.
Step 4: Prioritize flexibility and agility
Opt for cloud-based ERP solutions that scale and adapt to changing business needs. Consider moving to a cloud-based ERP solution if it aligns with your organizational goals. Cloud-based systems offer easy access from anywhere, robust security measures, regular updates, and lower upfront costs. Evaluate the advantages and potential risks associated with an IT cloud service before deciding.
It’s a good idea to check if the ERP platform offers easy customization options without heavy reliance on IT or external consultants.
Step 5: Plan for continuous improvement
Develop a roadmap for ongoing enhancements and upgrades to your ERP system. Simply opting for erp implementation consulting isn’t sufficient; you need to chalk out a roadmap for future enhancements and upgrades. Assess your business needs and identify areas where your ERP system can be enhanced or optimized. This could include adding new features, improving existing functionalities, or addressing any gaps or limitations.
ERP vendors regularly release new versions, updates, and patches to address bugs, and security vulnerabilities, and introduce new features. Define a regular upgrade cycle to stay current with these updates.
Regularly evaluate new modules, functionalities, and technologies that can improve your ERP process.
Step 6: Foster collaboration between IT and business teams
Promote collaboration between IT and business departments to ensure the ERP strategy aligns with business goals.
Regardless of its industry, each organization has unique objectives that drive its operations. For-profit enterprises often aim to boost their profit margin, increase revenue, and expand their market share. On the other hand, nonprofit organizations seek to enhance operational efficiency, deliver more services within their budget constraints, and enhance stakeholder satisfaction. Irrespective of your organization or industry, it is crucial to establish broad objectives and refine them to achieve specific outcomes.
Foster communication and feedback loops to continuously improve the ERP system.
Step 7: Invest in training and support
Provide comprehensive training to users to effectively leverage the functionality of your ERP system. Training programs and certifications can enable employees to effectively utilize these technologies, making informed decisions and driving optimal outcomes. Transform the role of your IT organization from primarily focusing on development to that of advisors and curators.
Ensure that there is ongoing support available to address any issues or questions that arise. Any new technology needs some time to get accustomed to. So, if you have a non-technical workforce, provide them with ongoing support so their work doesn’t get hindered because of a lack of knowledge.
By following these steps, you can build a composable ERP strategy that enables long-term success and adaptability for your organization. Remember to regularly review and adjust your strategy to keep up with evolving ERP systems!
