Buying an ERP (enterprise resource planning) software system can be a daunting task, particularly for those in the construction industry. I know the process of choosing a construction ERP solution and then finding the time, right internal resources and partner can be challenging, while you also have to focus on running your business at the same time.
How do I know this? I have been on the client side of the desk many times through major software implementations involving ERP and CRM software, and also spent 3 years as the COO of a Specialty Contractor. After being involved in hundreds of ERP implementations over the years, I’ve found there are a few principles that can help you during the selection and implementation process.
1. Select a Partner that knows your industry: this is absolutely most important.
It is much easier to teach a technical person a software package than it is to teach business process experience in a particular Industry. Your implementation partner needs to have experience in your industry and understand the unique business processes that must be handled by the new software package.
2. Focus on Core Fundamentals: Software has to do a good job at the fundamentals!
- Job cost Accounting
- Time & Expense Entry to produce accurate and on time billing
- Payroll
- Service
- Material Handling
- Solid Reporting to Manage Margin
For example if 70-80% of your business comes from bid construction jobs, you do need to focus on a package that does project accounting a EAC reporting very well, but don’t forget Service; it may only be 20-30% of your business but double the margin for you.
Make sure you get the core fundamentals right, and then phase in some of the nice to have features later.
3. Software that is flexible and can grow with you:
You need to pick a solution that can be flexible and bend with your business processes without a lot of coding, but instead more configuration. Some software publishers have a flexible platform that enable this and some box you in. Make sure you understand how your unique needs are handled in the software.
Bottom Line: Do most changes need to be coded or can many be configured and who can do it is the important question to ask.
In a Nutshell: Does the software self-empower you to grow and change, or do you have to call the publisher or partner for everything. Which translates to more cost for you.
4. Implementing Software is not like a Construction Project (try to keep this in mind, although I know this is not easy)
It is not as defined as how many bricks are needed for a wall or what size the windows will be. The project will most likely change as your team realizes requirements they forgot during the sales process and needs may change during the implementation. By all means, manage scope carefully, but also be fair to your partner and work together to better understand and address any changes. Staying on the same TEAM will create more passion for success for all team members involved.
At the end of the day you depend on your partner and team for a successful implementation.
5. Success = the Customer, the Partner & The Product
It is important to realize that the product does not equal success. I have been the user through 3 major enterprise implementations of the same product, and one went very well, (we already had a large skilled implementation team for this application), and one went OK, and the other very poorly, and basically cost the demise of a major company. In that case, we had a bad partner and were really a bad customer.
It is like a 3 legged stool, the customer, partner and product need to be equally strong and capable, or the project will fall down.
Another 3-Legged Stool analogy is: Functionality – Cost of Ownership – and Ease of Use. Most companies that are new to software searches focus more on functionality and cost of ownership, but, do not forget how important ease of use is.
If the users do not use the software to it’s fullest capability you will be missing ROI that you were counting on.
