GROUND-TO-CLOUD

Questions to Ask
When Purchasing
an ERP System

1
Introduction

An (Enterprise Resource Planning) ERP system has the power to revolutionize a

business. An ERP system’s powerful management tools and features create more
efficient processes, more productive employees, and more visibility into business-critical
data and reporting. It is a system for keeping a business on track to achieve leaner
processes and greater profitability by leveraging in-depth operational insight, with the
ability to assess and analyze processes and results across departments.

But as the ERP system runs each area of a company, you must be extremely careful
that the ERP system you choose is the right one for their business. Otherwise, the wrong
choice could cause disjointed data and processes that disrupt supply and demand
chains, damage important customer relationships, and hurt the bottom line.

This ebook will delve into the important questions you need to ask during each stage of
the ERP search and evaluation process. It will help you understand what to look for when
choosing a partner, how to incorporate industry considerations in your search and how to
eventually implement and deploy an ERP system. Ultimately, this ebook will help guide
you toward selecting the ERP system that will best support – and evolve with – your
unique business.
 TABLE OF

Contents

04 Choosing a Partner

06 Implementation

08 Post-Launch

10 Retail Specific Questions

12 Manufacturing Specific Questions

14 Architecture, Construction and Engineering (AEC) Specific Questions

16 Question Recap

18 Conclusion

19 Next Steps

3
 Choosing a
Partner
Q UE S T ION S

1 / How long has your company been in business?

An ERP provider’s business should be stable and experienced. A volatile company, or
one that hasn’t been in the ERP space for very long, can spell major trouble for both your
ERP system and implementation project.

A provider who has been delivering ERP systems for a large number of customers, over
the years, has the implicit knowledge and expertise that’s necessary for acquiring and
maintaining a significant customer base.

2 / Is your company an ERP specialist?

An ERP system is a powerful business tool that delivers critical insight into the health of a
business. But this tool requires a substantial dedication of time and resources to ensure
that it’s implemented properly.

An ERP provider shouldn’t treat an ERP system as an add-on. Rather, ERP system
development and deployment should be a key pillar of their business. You want an ERP
provider who will take your implementation seriously.

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3 / How many clients are you currently supporting with this
ERP? Can we talk to an active customer in our industry
who’s using this solution?
An ERP provider’s customer base is a crucial indicator of a partner’s implementation
experience and system results. While projects can vary, if a provider has a track record
of unhappy customers, it’s likely they don’t have the expertise or the means to deliver a
smooth implementation.

Understanding the number of customers in your industry for whom a provider has
implemented (and still supports) is important because it validates the provider’s capacity
and resources, as well as their commitment to customer service. A partner with industry
experience will understand how your business works, the processes that are needed
to make it run successfully, and how their ERP system can best integrate into your
organization.

4 / What’s the experience level of your implementation team?

Do you have industry-focused team members?
An ERP implementation ultimately depends on the skill of the implementation team
members who are doing the work. The more knowledgeable and experienced a team is
on technical, business and industry fronts, the easier an implementation will go; lack of
experience creates a frantic and fragmented deployment process.

Determining the experience of the team that the ERP provider will dedicate to your
company will give you a better understanding of how your implementation will be
handled. If a provider is sincerely committed to your project’s success, they will provide
you with their A-team.

5 / Why should a customer choose to work with your

company rather than a competitor offering the same
or similar ERP system?
This is a crucial question that boils down to what differentiates this provider from their
competitors. If they don’t bring important, and unique, value to the customers they work
with, then what’s the point of choosing them? Hearing them share what value they will
specifically bring to your company, and what you can expect from their partnership, is a
way to learn if their business priorities and goals align with yours. If not, it’s best to look
for a provider that does.

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 Implementation
Q UE S T ION S

1 / How will your ERP system help us make better business

decisions and generate more revenue?
An ERP provider should be able to walk you through exactly how their ERP system will
help your business run more efficiently and productively. They should explain which
parts of the system will manage which parts of the operations, and what processes
it will help improve. If a provider can’t offer a clear, step-by-step explanation of how
their system will impact your business, then chances are they don’t have a clear
understanding of your business needs, or how their system relates.

2 / How long will it take to implement this software?

Even in the best circumstances, ERP implementations take time. An ERP provider
should be realistic about the timelines for each stage of the project, as well as the
complexities that can stretch deliverable dates. A provider should deliver a pragmatic
and well-defined timeline containing the appropriate deliverables, as well as a bit of a
cushion for tackling any unforeseen issues.

3 / What implementation tasks are we responsible for,

and what tasks will our implementation partner be
responsible for?
You may have different expectations of what you and your provider are responsible for
during an implementation. Discuss each side’s expectations, and determine who will be
accountable for the different areas of work. Incorporating each side’s agreed-upon tasks
into the implementation plan, and designating specific responsibilities to certain groups
or people, will prevent any confusion, blame, or muddled work agendas.

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4 / What happens if there are any problems during the imple-
mentation? Or if it runs long?
An ideal implementation would go smoothly at every step, with deliverables completed
perfectly and ahead of schedule, and the whole project running significantly under-
budget. But that’s not always the way it goes. Even if all the right pieces are assembled
at the right time, there’s always the possibility that an ERP implementation can get
disrupted by factors outside of a team’s control.

An ERP provider should offer a backup plan for addressing any contingencies, and
should communicate with you what you can expect in those situations. And if an
issue occurs that’s the fault of the provider – such as missing or lost data, or if their
deliverables are not being completed in time – they should let you know how they plan to
compensate you in those instances.

5 / What is the plan for communicating work progress and

deliverable achieved?
Your company’s stakeholders need to be well-informed of implementation progress
during each phase of the project. Without insight into what’s going on, business leaders
may quickly become puzzled about what the company’s investment will achieve, and
if it’s really worth it. Having a plan for consistently updating them on project work and
achievements will boost the engagement and support they offer.

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 Post-Launch
Q UE S T ION S

1 / What is the plan for training our users across departments?

No matter how much time and energy is devoted to an ERP implementation, an ERP
system will only be truly successful if your company uses it. Lack of use is an unfortunate
waste of the hours and budget that were invested into making the system run. Work with
your ERP provider on developing a detailed plan for training all the different users in
your company, spanning departments, to ensure no one gets left out and no one has an
excuse for not using the system.

2 / How long will it take to get users fully trained?

You want your team to benefit from your new ERP system as soon as possible, but you
don’t want to sacrifice proper knowledge and training to do so. Being mindful of the
learning curve that a new system presents, and understanding how long it will take to get
users fully up-to-speed and comfortable with the system, is an important consideration in
post-deployment processes.

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3 / What
CHA L L Eis the
N GE S support plan? Who do we call if we have issues,
and what’s their expertise level?
How will your ERP provider help support and maintain your system after it goes live?
Different ERP hosting platforms present different levels of ERP engagement post-
implementation. For instance, on-premises ERP is primarily the responsibility of your
company to monitor and support, as the system is hosted on your company’s servers.
For Cloud ERP, the ERP provider is responsible for monitoring and fixing any issues as
they arise.

Being clear as to what you want your ERP provider’s role to be after implementation
finishes, and how you want them to be involved with your system, is important for
determining exactly who is accountable for keeping your system healthy and productive.

4 / How are regular software updates provided and deployed?

The answer to this question depends on whether you choose an on-premises ERP or a
Cloud ERP. Understanding what kind of commitment you want to have with managing
your system from a daily technical perspective is key to understanding which hosting
model may work best for your company.

With an on-premises ERP, your company has full control over your system’s changes, but
that means that your company is liable for making any new updates or upgrades. Your
team must always be aware of new product releases, what they entail, and how they
would impact your business processes.

While Cloud ERP’s online infrastructure does not offer the same customizability as
on-premises, it allows updates to occur automatically. In addition, your ERP provider
manages the IT – it’s their job to make sure the latest ERP version is installed, and that
it’s running in tip-top shape.

5 / How does the system scale? Could we add new users or

modules in the future if we wanted to? If so, what would be
their costs?
How will your ERP system grow with your business? Understanding the level of flexibility
you need (and the corresponding costs that different levels of flexibility offer) is an
important consideration when evaluating ERP systems. If your company is projected to
grow exponentially over the next few years, or to expand into new geographies, then
a more agile, easily customized system could be the way to go. But if your company’s
growth is less dramatic (and more on the side of holding steady), then this may not be as
much of a business need.

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 Retail Specific
Questions
Q UE S T ION S

1 / What merchandising capabilities does this ERP offer?

The key to enticing customers and converting them from browsers to buyers is
allowing them to find the right product at the right time, for the right price. Keeping your
merchandising on-point with accurate and up-to-date product availability and pricing
information, as well as an attractive platform that displays your products in the best light,
is crucial to winning customer attention and wallet share. An ERP system should bolster
each component of your merchandising processes, giving you full control over driving
sales conversions.

2 / How will this ERP deliver omni-channel management?

Consumers are no longer shopping through one channel and one channel only.
Consumers browse from different devices and locations, enjoying the flexibility and
convenience that the omni-channel retail model offers. The better a retailer is at providing
a unified, consistent shopping experience across these different channels, the more likely
it is that a customer will return. An ERP system that provides a consolidated view into retail
channel activities and transactions – mobile, brick-and-mortar, and call center – will help to
more cohesively manage those channels from one system.

3 / How does this ERP integrate with our POS?

The point of sale is the cornerstone of the retail store. Not only does it complete the sale, but
it can also offer additional customer spending opportunities, such as through product cross-
selling/up-selling, or looking into the customer’s profile and seeing their past shopping
history. An ERP system that seamlessly integrates with your POS ensures your store
associates have the most accurate inventory and customer data at their fingertips, and that
your backend processes are always up-to-date on transactions and new data as it flows in.

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4 / How
CHA L Lwill
E N GEthis
S ERP system enhance the customer
shopping experience?
A customer-centric shopping experience is a differentiator. A mobile POS helps deliver
effective clienteling, enabling store associates to look up customer profiles, view past
purchases, and define customer needs and preferences. An ERP system that supports
this targeted, personalized customer engagement sets the stage for not only simply
meeting customer expectations but exceeding them.

5 / How will this ERP help us measure and analyze store

performance?
Understanding a store’s sales breakdown – by product, product category, customer
demographic, channel, etc. – is critical for developing a business strategy that fuels
growth. Identifying and analyzing what’s working and what isn’t enables you to devote
resources toward creating and executing initiatives that result in greater sales success.
An ERP system should offer in-depth, out-of-the-box reporting and analytics that delves
into all areas of your business.

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 Manufacturing
Specific Questions
Q UE S T ION S

1 / How does this ERP system support our style of

manufacturing?
Different manufacturing types operate in different ways. For instance, a discrete
manufacturer has different processes and needs than a process manufacturer, and when
looking at an ERP system, would have a different set of business requirements.
You don’t want a brand-new, unproven system running your business; finding a well-
established, manufacturing segment-specific ERP system and provider should be top
priority. An ERP system should specialize in the type of manufacturing your business
offers. As evidence of this, an ERP provider should be able to share a list of their ERP
customers in your segment, and explain how those customers use this ERP system to
better manage their businesses.

2 / How will this ERP system deliver supply and demand

chain transparency?
Supply and demand chains are the lifeblood of a manufacturer. Keeping each step in the
chain running smoothly and efficiently is vital to keeping sales, production, and delivery
processes moving toward a successful and timely end. An ERP system that delivers in-
depth insight into each stage of planning, resource procurement and allocation, execution,
and final distribution will support supply and demand chains functioning at a powerful, and
consistently profitable, level.

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3 / How will this ERP system manage our order-to-cash
CHA L L E N GE S
processes?
Manufacturers need end-to-end visibility for each stage of the sales process, from the
moment an order is placed to when the products are delivered. An ERP system that
provides automated workflows for efficiently processing and tracking each step – the
initial quote, to the sales order, to invoicing and payment, to shipping and delivery –
will save your company time, satisfy customers, and ensure your cash flow is always
on-target.

4 / How will this ERP system manage our purchase orders?

If the right components for producing a product aren’t assembled, or aren’t assembled in
a timely manner, manufacturing projects can fall behind deadlines – delays which can be
detrimental to the customers who are relying on those products.

An ERP system that offers comprehensive reporting and analysis for an efficient and
secure procure-to-pay process minimizes risk and waste. Optimizing procurement with
user-friendly purchase requisition tools, a database of approved vendors for quicker
vendor selection, and a transparent record of open and past transaction histories, along
with vendor performance measurement, are crucial in reducing the time and resources
required to obtain the materials you need to move forward.

5 / How will this ERP system manage our warehouse and

fulfillment operations?
Moving the right products in and out as quickly as possible is essential to keeping an
agile and cost-effective distribution process. An ERP system that allows you to manage
and track the flow of inventory and its storage locations; easily perform advanced
warehouse management functions, such as picking and putting away, cycle counting,
replenishment, etc.; and keep inbound and outbound processes controlled and on-
schedule ensures that logistics are always in order and running according to plan.

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 Architecture,
Construction, and
Engineering (AEC)
Specific Questions
Q UE S T ION S

1 / How will this ERP help manage our projects at each stage?
Project management is the backbone of an AEC company. Keeping tight control over the
many moving parts that comprise a project, as well as their different complexities, can
mean the difference between project success and failure. And too many failed projects
– projects that are over budget, over time, or not completed to a customer’s satisfaction –
create a reputation that’s extremely difficult for a company to shake.

An ERP system that delivers a centralized view into all of the different projects that your
team is working on will provide the visibility necessary for ensuring each stage of each
project is on track to meeting milestones. An ERP system that provides insight into the
work that has been completed and is currently in-progress, as well as the work you plan
to undertake in the next phase(s), will keep projects running smoothly and on-target.

2 / How will this ERP support resource tracking and

scheduling management?
Every customer expects a highly qualified, professional team that will tackle the work
and complete it within the deadlines and budget specified. There are many factors that
create a well-prepared team – the right staff, equipment, and materials all need to be in
place in order to drive productivity and deliver results. An ERP system that allows you to
identify, schedule, and assign the appropriate resources to a project will ensure that the
appropriately skilled team members work on the job, and finish it in a timely manner.

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3 / How
CHA L Lwill
E N GEthis
S ERP system facilitate communication
between all project participants?
There are many different roles that work together to make a project successful. From
the workers performing the construction and engineering work; to the project manager
overseeing the job phases and the project as a whole; to the accounting team tracking
time and expenses, and completing billing and invoicing; to the company leadership that
steers business operations, and provides support and resources.

An all-in-one ERP system that delivers the visibility and functionality that each role needs
allows each role to connect and collaborate – ensuring that the right data is being
entered, processed, and analyzed by the right teams. Processes run effortlessly when
everyone can work seamlessly together, which prevents any misunderstandings that
delay schedules and resource deliveries.

4 / How will this ERP system support mobility?

An agile project team is one that can direct courses of action at any time, from anywhere.
Mobile devices support valuable, well-timed decision-making and delegation. An ERP
system that enables team members to sign in and access the information they need,
no matter their location, creates a well-informed team that can act proactively. An ERP
system should enable the team to capture all on-site operations with a mobile device,
such as time and expenses, job change order requests, job service requests, and job
procurement.

5 / How will this ERP system deliver equipment management?

Without the tools and equipment needed to do the job, a project will burn precious
time and budget fixing out-of-commission equipment. Monitoring and maintaining
your equipment’s health is crucial to keeping it running optimally, and thus minimizing
your resource costs and service time. An ERP system that helps keep tabs on your
equipment’s usage and location, and alerts you to any potential dangers, will help you
ensure equipment up time and availability.

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 Question Recap
Here’s a quick checklist recapping the important questions you should be asking when
you begin the process of searching for an ERP system:

1 Choosing a Partner
1. How long has your company been in business?
2. Is your company an ERP specialist?
3. How many clients are you currently supporting with this ERP? Can we talk to an active
customer in our industry who’s using this solution?
4. What’s the experience level of your implementation team? Do you have industry-
focused team members?
5. Why should a customer choose to work with your company rather than a competitor
offering the same or similar ERP system?

2 Implementation
1. How will your ERP system help us make better business decisions and generate more
revenue?
2. How long will it take to implement this software?
3. What implementation tasks are we responsible for, and what tasks will our
implementation partner be responsible for?
4. What happens if there are any problems during the implementation? Or if it runs long?
5. What is the plan for communicating work progress and deliverable achieved?

3 Post-Launch
1. What is the plan for training our users across departments?
2. How long will it take to get users fully trained?
3. What is the support plan? Who do we call if we have issues, and what’s their expertise
level?
4. How are regular software updates provided and deployed?
5. How does this system scale? Could we add new users or modules in the future if we
wanted to? If so, what would be their costs?

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4 Retail
1. What merchandising capabilities does this ERP offer?
2. How will this ERP deliver omni-channel management?
3. How does this ERP integrate with our POS?
4. How will this ERP system enhance the customer shopping experience?
5. How will this ERP help us measure and analyze store performance?

5 Manufacturing
1. How does this ERP system support our style of manufacturing?
2. How will this ERP system deliver supply and demand chain transparency?
3. How will this ERP system manage our order-to-cash processes?
4. How will this ERP system manage our purchase orders?
5. How will this ERP system manage our warehouse and fulfillment operations?

6 Post-Launch
1. How will this ERP help manage our projects at each stage?
2. How will this ERP support resource tracking and scheduling management?
3. How will this ERP system facilitate communication between all project participants?
4. How will this ERP system support mobility?
5. How will this ERP system deliver equipment management?

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CO N C L U S ION

An ERP system that unifies management of the data, people, and processes that your
companies relies on is essential for keeping each facet of the business well-integrated
and running smoothly. But trying to find that all-in-one, cost-effective ERP system that
delivers on this promise can be overwhelming.

Microsoft Dynamics 365 for Operations is the new answer to this challenge. Dynamics
365 for Operations helps organizations connect financial, HR, production, and supply
chain management while also enabling improved efficiencies across procurement and
sourcing, retail, project management, and accounting all in one system.

The purpose-built flexibility and ease-of-use of Dynamics 365 for Operations enables
you to tailor your ERP system with the applications that will make your employees
more productive and efficient. Built-in data analysis tools – such as Microsoft Power
BI, Cortana Intelligence, and Azure Machine Learning – allow you to examine current
business initiatives and see how they measure against your goals.

With Dynamics 365, your company benefits from a crystal-clear vision into operations,
accelerating strategic business planning and development, and driving company
growth.

An ERP project requires a significant investment of time, energy, and resources at each
stage of the process – from search and evaluation, to implementation, to go-live, to post-
implementation support. But when it’s the right fit for your business, it delivers a powerful,
agile technological foundation for taking your business into the future.

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Next Steps
Don’t miss out on the crucial collaboration, data organization and data analysis
opportunities that an ERP system offers.

If you’re ready to start the conversation on ERP, reach out to us at

http://us.hitachi-solutions.com/contact-us/ with any questions. We help
businesses like yours improve their business management models with
technology every day.

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