Aligning Business Processes with Your New ERP System

THE PROBLEM

Our current ERP is no longer supported and was built with many customizations and workarounds. How do we fix our business processes so they will work in an out-of-the-box ERP we have already selected?

THE SOLUTION

Document Current Processes

Begin by thoroughly documenting your existing processes, creating a comprehensive baseline for comparison and analysis:

• Gather documentation examples: Collect all templates, forms, reports, and documents used throughout each business process. These serve as critical data references that reveal what information your organization needs to capture and utilize.
• Create detailed process maps: Document the precise sequence of activities in each process, identifying who performs each step, which systems they use, when data is captured, and where information is stored or transferred.
• Identify pain points: Clearly mark activities that cause frustration for users, involve duplicated efforts, create bottlenecks, or suffer from recurring quality issues. Pay special attention to manual workarounds that were implemented to address limitations in your current ERP.
• Document dependencies: Note which departments or roles depend on the outputs of each process and how information flows between different functional areas of the business.

Design the Future State

With current processes documented, craft an improved future state that addresses existing issues while preparing for your new ERP implementation:

• Document essential requirements: Clearly define what needs to be done, recorded, and communicated throughout each business process, focusing on business outcomes rather than specific system functionality.
• Eliminate inefficiencies: Design streamlined processes that remove unnecessary steps, reduce manual effort, and minimize opportunities for error.
• Validate improvements: Compare the draft future state against the identified current state issues to ensure they are genuinely resolved rather than simply shifted to various parts of the process.
• Prioritize standardization: Look for opportunities to standardize similar processes across different departments or business units to maximize the effectiveness of your out-of-the-box ERP.

Collaborate with Your ERP Vendor

Work closely with your selected ERP vendor to ensure alignment between your process needs and system capabilities:

• Review draft processes together: Walk through your draft business processes with vendor representatives who understand the system's capabilities and limitations.
• Request standard process flows: Ask for documentation showing the out-of-the-box process flows for the modules you have purchased or are considering. These standard flows reflect the system's built-in best practices.
• Conduct gap analysis: Compare your drafted future state processes against the standard ERP processes to identify areas of misalignment or functionality gaps.
• Request targeted demonstrations: Ask your vendor to demonstrate specifically how their system would manage your unique business requirements, particularly for processes that are critical to your operations.
• Evaluate modification needs: For processes where gaps exist between your requirements and standard functionality, assess whether your business process can be adapted to fit the system's approach. If not, request detailed quotes for the cost, timeline, and long-term implications of customizing the system.
• Document decisions: Keep clear records of all decisions regarding process changes versus system modifications, including business justification and expected impacts.

THE RESULT

Business processes that are consistent, efficient, and carefully aligned with your new ERP system's capabilities—minimizing customizations while maximizing the return on your technology investment. This alignment creates a foundation for improved operational efficiency, better data quality, and reduced complexity in your technology ecosystem.

If you have questions about any of these points, connect with us!

Meira is a solution agnostic ERP consultant. Meaning we don’t sell specific ERPs. We help you pick the right ERP for your business and ensure it gets implemented well.