If you’re looking to get started with an ERP project, it’s critical to understand both the business goals and the technical realities before you commit. This is the first in a two-part series on how to launch a successful Enterprise Resource Planning (ERP) project.
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We’re talking billions in revenue from a vast number of projects, despite the fact that most fail to meet their objectives, and many fail to finish. A substantial minority even end up in litigation, with experts, advisors, and lawyers mining their own rich seam of fees.
Of course, not everyone is out to get you. There are plenty of ERP packages worth the money, just as there are helpful and reasonably priced consultants. We say this only to underline the importance of caution when launching an ERP project.
For CEOs and leadership teams looking to get started with an ERP project, understanding the scope, risks, and commercial impact upfront makes all the difference.
But what exactly is ERP?
Consider all the core processes you need to run your company: manufacturing, supply chain, services, procurement, inventory, finance, HR, and others. The most basic function of ERP is to integrate all these processes into a single system, giving every part of your business access to the same information in real time.
Well-known products include Oracle (PeopleSoft, NetSuite, JD Edwards), SAP, Sage, Microsoft Dynamics and NAV, IFS, Epicor, and Access.
Originally, these products targeted manufacturing, but today they aim to serve every sector. In professional services, ERPs are often called Practice Management Systems. In legal services, ERP provides a single platform for billing, client management, accounting, time records, and documents.
How do you know when you need an ERP project?
Many organisations only realise they need help when systems start holding them back, but the smartest leaders get started with an ERP project before operational issues become business risks.
At Freeman Clarke, we’ve lost count of how often CEOs approach us about ERP. Sometimes they’re starting fresh. Other times they need help escaping the wreckage of a previous attempt. Either way, the signs are familiar:
- People rekey data from one system to another
- Data doesn’t match across departments
- Reporting is hard, so decisions suffer
- Marketing ideas stall due to lack of data
- Digital initiatives can’t get off the ground
- Legislative and security compliance is difficult
If any of these apply, you likely need to launch, or relaunch, an ERP project.
Another warning sign is when workarounds become normal. We often see inefficient practices slowly take hold in mid-market companies. Are a few individuals critical to operations? Is managing workarounds their entire job?
Disconnected leadership creates disconnected departments. Over time, simple businesses become complicated through personality clashes, inefficient processes, and outdated technology.
Untangling this is time-consuming and not very interesting. Often, only those immersed in the problems truly understand them, and they rarely have authority to fix them. Few people suggest changes that might eliminate their own roles.
What can ERP do for your business?
ERP promises true integration, unifying fragmented systems and processes. When you get started with an ERP project with clear objectives and strong leadership, it becomes a powerful platform for integration, reporting, automation, and long-term growth. Real integration delivers transformational benefits.
ERP can streamline operations, reduce costs, and improve morale. It provides an opportunity to simplify your business by reorganising processes and systems. This saves money and reduces friction between teams.
It also reduces reliance on manual workarounds. We often see skilled staff trapped in Excel building reports. When reporting is automated, those people can refocus on growth and improvement.
ERP improves integration with customers and suppliers. Price matters, but it’s rarely the only factor. In B2C, service often outweighs price. In B2B, integrating directly with customer systems can create long-term relationships that are less price sensitive.
In short, ERP creates a level of intimacy with customers that delivers serious competitive advantage.
ERP also provides a platform for digital innovation and marketing. Both depend on clean data and easy integration with new technologies. Your business needs a modern technical foundation that delivers accurate data and connects easily via APIs or middleware.
Put simply, your front end is only as good as your back end.
ERP frees decision-makers through better reporting. Many executives are trapped in day-to-day operations, leaving little time or energy for strategy. The right dashboards allow delegation within clear limits, giving leaders space to focus on direction and performance.
These are genuine opportunities. ERP projects are hard, but done well they can take a mid-sized business to a new level.
Ultimately, how you get started with an ERP project will shape its success, from supplier selection to adoption across the business.
A note on ERP products
Because ERP is about integration, you may be tempted to buy a single product. That sounds simpler, but appearances can be misleading. Some vendors assemble ERPs from acquired products that share branding but lack true integration. Problems often emerge only after implementation.
ERP products also vary by sector. Generic solutions may not meet industry-specific needs.
An alternative is a “best-of-breed” approach, combining specialist systems. This involves more integration work but can offer competitive advantage.
In our experience, the best option is usually hybrid: best-of-breed for key functions, supported by a generic ERP for the rest.
For example, complex treasury may require specialist finance software, while automated warehouses need systems that support robotics. A single ERP rarely excels at both.
If you’re about to get started with an ERP project, you may also find this useful. Our CEO shares practical lessons from Freeman Clarke’s own ERP journey, including what worked, what didn’t, and what we’d do differently next time
Where does Freeman Clarke fit?
Our people are experts in all aspects of ERP products, providers, and projects. What’s unusual about us, though, is that we are entirely unbiased, we have no commercial connections to any supplier or product. And we join your team, so we’re on your side of the table. We simply use our skills, knowledge, and experience to make our clients as successful as possible.