Thus, before starting to plan the development of an ERP system from scratch, first conduct an audit of your company's business processes. If something needs to be standardized and / or modernized, do it before starting work on ERP.
The sixth largest retail in the USA failed to enter the Canadian market due to the unsuccessful implementation of the ERP system
Without doing this, you can share the same fate of the American retailer Target (SuperTarget), which in 2016 was forced to withdraw from the Canadian market after the introduction of the ERP system
, that plunged their supply chain into chaos. Target had problems with the confusion of data from suppliers (commonplace in retail), but instead of solving this problem, they conducted an aggressive implementation of ERP as soon as possible.
Step 4: Help developers understand your business
Developing an ERP system from scratch assumes that it will be created taking into account all the features and needs of a particular business. This means that you must tell all the nuances of your business project manager or, even better, show how your company works from the inside. If you have attracted third-party developers to create ERP, then this is a prerequisite.
In other words, you need to lead developers on scripts:
- Customer. Demonstrate how the company interacts with customers.
- Employee. Show what happens behind the scenes of your business: who, what, how and when does.
- Partner. Demonstrate how banks, retailers, contractors and other partners interact with your company's ecosystem.
A comprehensive study of business processes will help ERP system
developers to understand the features and specifics of your company: management structure, information flows, tools and points of interaction with customers and partners.
Without this, it is impossible to create a truly efficient and useful platform. How, for example, Avon failed to do this in 2013 during the implementation of the ERP / CRM / eCommerce system, which spent more than $ 125 million. The direct sales giant did not take into account the needs of customers and partners and in fact complicated their work by creating additional bureaucratic procedures.
Step 5: Determine Your Expectations
After the development team has studied the company, invite all interested parties to the round table and indicate what you expect from the implementation of ERP. Then ask everyone to comment on this, so that each participant also identifies their expectations and concerns. During this meeting, you will need to take it all in, filter out and prioritize.
At this stage, it is important to remember that it is impossible to meet the needs of all participants, so it is necessary to strike a balance between the wishes of various parties and the implementation of the project on time and within budget. With the construction of such a balance should help the development team, which will tell you how difficult it is to implement certain functions and tools.
At the end of such a meeting, you should have:
- a list of functions that the developed ERP system will have;
- a list of roles for various participants in the system, for example, a salesman, storekeeper, marketer, head of department, customer, and trading partner;
- project implementation phases and priorities.
Step 6: Decide on a project vision
When you have a preliminary list of functions, you and your development team
will get an idea of what the ERP system will look like. Now it is important to combine all these visions into one whole, which is best done with the help of visualization - wireframes.
An example of visualization using wireframes
provide insight into the interface and data flow. Implement them in the form of a block diagram and a description of what they are needed for and what they do. In this way, you need to visualize all custom ERP usage scenarios, which usually includes a description of the four directions of system implementation.
Human Capital Management (HCM)
By creating an ERP platform from scratch, you can help the personnel department automate and improve a number of labor-intensive processes, such as performance management and compensation, employee performance evaluations, or payroll processing.
An example of visualization of the personnel management interface
Process Analysis and Planning
ERP are designed to manage the flow of information and their automation, which allows the use of such systems for analysis and planning. To do this, you need to add the appropriate module to the system, which will collect and process data, and then visualize them in the form of tables, graphs and charts. In addition, a calendar can be embedded in the system to create and track various events and tasks.
An example of visualizing the task scheduling interface
The implementing of ERP-system will optimize the process of inventory management. Many elements of this process can be automated, and information on the status of stocks will be available to all departments of the company. Thanks to this, it is possible to stabilize inventory levels or, for example, to quickly create special offers (promotions, discounts, sales) for a product that has an expiration date.
An example of visualization of the inventory management interface
In addition, a good inventory management system will provide an opportunity to collect big data, which will help you understand what is best to sell. Such connections are not always obvious. For example, Walmart, using data from all its stores, analyzed what product
is in demand before and after hurricanes. It turned out that the most hurricanes contributed to the sales of strawberry pop-tarts (+ 700%). Why? Nobody knows.
Based on this analysis, Walmart conducted an experiment: the Pop-Tarts were delivered to supermarkets along Highway 95 (along the path of Francis Hurricane 2004) (stocks used to be exhausted quickly). Indeed, these cookies were sold particularly well these days. Now Walmart is using this scheme constantly.
If the company does not use any ERP-system, reporting can take a lot of time. For example, some companies even allocate additional time for employees specifically for reporting, so that they have time to do it during the working day. In the modern world, this is an archaic way of doing business, since even with the help of the simplest ERP, you can compile all the necessary reports in a few minutes.
An example of interface visualization of the report making
In advanced user ERP-systems created
from scratch, you can also realize the possibility of compiling relevant reports. For example, you can use custom filters and statistical tools to compile a report on the effectiveness of an individual employee or a report on the shelf life of dairy products stored in a particular warehouse.
Step 7: Design and Implementation