The Crisis as an Opportunity: ERP Implementation and Optimization Projects in Times of Covid-19

The situation is serious, in many companies the operational business has been suffering for months. Due to the Covid-19 pandemic, orders and projects are being canceled or postponed. Machines stand still because no deliveries are made. Employees are furloughed or on part-time status. But the crisis can also be an opportunity to advance digitization projects. Companies that use this challenging time strategically can emerge stronger from it.

ERP System as the Backbone for Digital Transformation

The Covid-19 crisis can act as a kind of catalyst for digitization projects that have been planned but postponed. This also includes the introduction of updated ERP software or the conversion to a new ERP system. Because an ERP system is the linchpin for digital transformation. It not only covers the entire breadth and depth of business processes in manufacturing companies, but also helps companies to react to disruptive situations such as the current crisis. As a "single source of truth", it represents a consistent database from which the entire company benefits. Since the ERP software maps business processes across the company and across locations, provides data, and networks activities, it supports the safeguarding of competitiveness during and after the crisis.

ERP Implementation: Scope for Implementation

Covid-19 has far-reaching effects on everyday work: Disruptive orders, interrupted supply chains and part-time work are just a few of the challenges. This also frees up time. Time that can be used to begin the ERP selection process as well as digitization and optimization of processes projects. The reduced workload enables concentrated, detailed research and implementation. Last but not least, companies that are now implementing a modern ERP solution are preparing for a return to full-time business for a bright digital future.

At the beginning of an ERP implementation there is an assessment of processes and the analysis of what needs improvements: Which capabilities are missing in the legacy system? Which functions and areas of the company need to be networked with one another? Where do stand-alone solutions exist that are to be merged into an integrated system? Are reliable evaluations and forecasts available? Defining requirements is the core task in choosing the right ERP system and for a successful ERP implementation.

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ERP-Optimization: Adjusting Current ERP System

Existing ERP systems also have some optimization potential that can be exploited through appropriate projects. While there is often no time for such projects under full capacity, companies can now use free capacities to tackle them. Here are some examples for optimizing existing ERP systems:

Data Quality Improvement

Data storage often causes problems in everyday work. When there is time pressure, master data can be incomplete, incorrect, or duplicates arise in the system. Poor data quality is sand in the gears of business processes.

The following measures are time-consuming and are often postponed:

• Eliminate duplicates and merge data sets - this eliminates the guesswork of which of the data sets is the current one.
• Add missing information - Often only the most necessary data is recorded in the heat of the moment. Name, address, email, done. Information that offers added value should be supplemented. For example - payment terms, offer preferences, other contact persons, product specifics, delivery options, keywords, etc. The more precisely products, customers and suppliers are mapped in the system, the more precisely services can be tailored to the need of all parties.
• Remove obsolete data - This minimizes misinformation and risk. Plus speeds up the data processing.
• Structuring data - The structuring of data or the standardization of formats makes it possible to work optimally with them.

Make Full Use of the Functionalities of the ERP System

ERP systems are complex, they offer a wealth of functionalities and possibilities. It is possible that some topics were left out when the ERP was introduced or they were postponed until later. Over time, the software has surely added a few new functions. In order to use the full potential of the ERP solution, companies should ask themselves the following questions. For example: Are there (new) features that have not yet been used and that contribute to more efficient work? Are the users up-to-date or is training necessary? Are dashboards and evaluations used effectively? KPIs help to react quickly, especially in times of crisis.

Back to the Standard and Current Software Version

Companies that have already worked with their ERP system for some time often develop a proliferation of add-ons, extensions and customizing. Much of this is perhaps no longer necessary, because the corresponding functionality is now included in the standard, and the opportunity for adjustment no longer exists. Companies should ask themselves the following questions in the course of optimization projects: Are adjustments or extensions still needed? Or are these perhaps already mapped in the standard version of the software? Modern ERP software contains enormous process knowledge and implements best practices. The system evolves with each new release, new functions are integrated - users benefit directly from an upgrade to the latest version.

Conclusion: Seize Opportunities - Implement ERP Projects During the Covid-19 Crisis

Many companies are lagging behind when it comes to digitization. Companies that use the crisis to implement ERP projects and that invest in optimizing their business processes have the chance to catch up and emerge stronger. Because ERP systems are the linchpin for digital transformation. They network processes and provide a uniform database that benefits all areas of the company. Processes are completed in a higher quality, done faster and more consistently. Transparency across all departments is increased. Evaluations, KPIs, and forecasts support agile corporate management. And agility is needed right now to strengthen competitiveness for the time when the crisis has passed.