The #1 reason to switch your ERP (Enterprise Planning System) is when your processes and software are disconnected, causing your business growth and scalability to stifle.
You need a powerful automated system to replace manual processes and bottlenecks.
It may seem complicated to switch all of your information over and onboard an entirely new system, but it’s not nearly as scary as it sounds, especially with the right team on your side.
Here is what to keep in mind when switching ERPs, including why to switch, how to prepare, and what challenges to anticipate.
Why Switch ERP Systems?
Simply put, most businesses are ready to switch ERPs when their current systems no longer work for them. This could look like this:
- Inefficient, piecemeal programs that don’t play well with one another.
- Clunky or outdated systems that worked when your business started are no longer sufficient for handling your evolved processes.
- A need to better align your processes with your business’s core values.
- A need to scale quickly and efficiently while done with true accountability.
If you’re finding that you’re consistently frustrated or inconvenienced by your existing ERP, that’s a tell-tale sign that it’s time for a switch.
How to Prepare for a New ERP System
Switching ERP systems is a big decision. You should allocate time for research to get exactly what you want out of your new ERP. Here are a few tips on how to best prepare when considering a new ERP.
Take it to the Cloud
Cloud-based ERPs, such as NetSuite, are considerably more powerful than any legacy ERP system due to their ease of integration and accessibility. We recommend going the cloud-based route to simplify your life down the line.
With NetSuite, you can easily add, remove, and customize your ERP to your business, even as your business grows and changes.
Consider Your 5-10 Year Goals
Where do you see your company headed in the future? What are your revenue targets? What are your OKRs? How do you plan to scale over the next five years?
These markers should inform the type of ERP you select, ensuring the system grows with you.
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Budget Out Your Options
Using your list of wants and needs, make a Plan A, B, and C that considers your absolute must-haves and what you can live without. Our consultants are always ready to work with you to ensure you get what you need without feeling compromised on cost.
List it Out
You’ve undoubtedly decided to transition to a new ERP for several reasons. Note down everything that isn’t working with your current ERP so you know what to look for and what to avoid in your next system.
Similarly, keep a running list of everything you could hope and dream for in your new system. Identifying the shortcomings of your current system is doubly useful to determine those missing pieces and help you form a comprehensive list that you can take to a consultant.
What to Expect When You Make the Switch
So you’ve found an ERP that works well for you, and it’s time to switch over. Now what should you expect?
Cloud-based ERP systems are advantageous for various reasons, but integrating a new system may come with growing pains. Just be aware of the following challenges before implementing your new system, and know that good things come to those waiting.
Disruptions to Operations
Implementing your new ERP will inevitably disrupt your business operations. Your implementation team may need anywhere from a few days to a few weeks for the final installation of your system and data transfer.
If you are in B2C sales and/or have an active online store, notify your customers of any website disruptions well before your switch.
Employee Training
We get it — change is hard. Your employees may take weeks to months to adjust to your new system. Help mitigate employee friction by informing everyone about the changes and providing ample training and support.
Time Associated with Making the Switch
Switching ERPs will boost your efficiency in the long run. Still, you should be prepared for the overall process to take anywhere from six months to two years (this accounts for initial discussions to final implementation).
Before your ERP goes live, several tests and procedures must be conducted to ensure the overall success of your new system. Be prepared for a time-intensive process knowing that it will pay off ten-fold in the end.
How StratusGreen Can Help
We understand better than anyone the unique challenges you can face in switching ERPs.
Fortunately, the StratusGreen team features consultants across all North American time zones and specializes in industries including automotive, distribution, manufacturing, SaaS, retail, and eCommerce.
Give us a call today to learn how NetSuite can take your business operations to the next level.
