Ayant fait la promotion, le packaging du process et la réalisation de migration d’ERP pour Infor et de WMS pour JDA, Bruno Simonnet vous recommande de lire cet Article.
Vous pouvez contacter UDW, qui pourra avec vous faire cette pré-étude et vous orienter dans cette problématique.
When to consider ERP replacement—Part 4
Maintaining a competitive status requires bold actions
Manufacturers face many difficult strategic decisions, but one of the most far reaching is deciding whether to keep or replace an aging ERP system. In Parts 1-3 of this Competitive ERP series, we discussed theurgency of responding to current market pressures and harnessing the power of new technologies. We also discussed the Manufacturing Performance Institute (MPI) paper, which explains the three options a manufacturer has when a system has become outdated: modify, expand, or replace.
Replacing a legacy ERP system is a serious step, of course. Not only must the capital investment be carefully weighed, but the investment in training, implementation, and the possible disruption to normal workflows must be considered. For some, it is a monumental task to be avoided if at all possible. This reluctance to take on the challenge may be one of the reasons so many manufacturers attempt to settle for outdated systems, or ones they acknowledge will not support their growth plans. In a recent MPI survey, almost 60% of manufacturers queried, said their current system was lacking the functionality needed to remain competitive. But, only 12% are planning to purchase a replacement ERP in the next 12 months.
Those companies investing in their IT futures are likely to be at the forefront of progress, enjoying the benefits of state-of-the-art technology. Should you be following the same decisive path?
How do you know when a total “rip and replace” approach is better than a series of modifications or add-on modules? According to MPI, “sometimes the best option is to start from scratch. This is often the case if a company’s growth has come mostly from acquisition and the integration of disparate systems is too costly or threatening to ongoing operations. Significant strategy shifts—restructuring or asset consolidation—can also render a legacy ERP inappropriate for evolving customer needs.”
A company may also realize that its ERP did not have the correct scope or vertical focus to begin with. Many manufacturers, influenced by Y2K fears, made hasty ERP decisions in the late 1990s. Some of those ERP selections were made primarily around financial capabilities, without much consideration of the functionality needed for the manufacturing side of the business. No amount of modifications and “fixes” can make a wrong ERP solution be the right one.
Company growth is one of the key reasons a legacy ERP warrants replacement, rather than modification. Some ERPs do an excellent job of bridging a start-up or SMB (small to medium-size business) from spreadsheets and clipboards to their first real-time, end-to-end system. But that basic ERP may lack the depth of functionality to scale when the company needs to add concurrent users, expand to multiple locations, more regions, more currencies, more languages, or a global supply chain. Then, it’s time to change.
In many cases, it is the enticement of disruptive technologies that makes manufacturers realize they want more flexibility than their legacy ERPs can offer. Yesterday’s monolithic-structured ERPs may encounter challenges when the manufacturer tries to introduce 3D printing, smart sensors, M2M connectivity, product configuration, customer portals, e-sales, or mobile solutions. Then, it’s time for a change.
The MPI report goes on to reassure manufactures that the decision to replace a legacy decision is not such a risk-filled journey as it may have been yesteryear. “Today’s ERP replacement approach is far less onerous than the big bang (i.e., pain) implementations of the past. Cloud technology allows for development work without shutting down the old system, and a phased migration of data can ease the transition.”
This is true, indeed. And, although replacing an ERP is no small decision, it is often the right decision, the one that will take your organization where you want to go.