Enterprise resource planning (ERP) systems can bring considerable benefits to local authorities, but thorough planning and preparation is vital. Here, Moore Insight assesses the main factors to consider in choosing a system and delivering a successful implementation.
Digital transformation involves using technology to drive fundamental changes within an organisation and enterprise resource planning (ERP) systems are a popular choice for governments aiming to enhance service efficiency and effectiveness.
ERP systems support the day-to-day running of organisations by centralising data across finance, HR and payroll, procurement, and other core business systems. It enables local authorities to streamline disconnected systems, improve processes, and automate laborious manual tasks.
An ERP is basically a coherent set of data which could sit in one or more systems. This allows consistent reporting and business analysis across disciplines.
But implementing ERP software is not as straightforward as it may seem. In fact, 50-75% of ERP projects fail the first time around to achieve what they set out to do due to a lack of knowledge and inexperienced partners.
Factors to consider
Despite commonly used sales messages, there is no ‘one-size-fits-all’, so the decisions you make on the software and implementation paths will determine the success of your project from the start.
What is certain is that ERP is a significant investment that requires time, money, and effort to yield a strong return on investment (ROI).
At Moore Insight, we have 33 years of experience advising on systems implementations. In that time, we have learnt a great deal about ERP, including the essential techniques and approaches that make ERP projects a success.
Here are some factors you should consider before choosing an ERP system:
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Understand your processes
Which of these components do you consider within the scope of your ERP and link into:
- Core general ledger, payables, receivables, and cash book?
- Specialist debtor systems, say revenues or housing?
- Direct sale systems?
- Specialist procurement systems?
- Planning budgeting and forecasting tools, including cash flow forecasts?
- Other trading bodies belonging to the council?
- Schools operated by the council?
Your ERP software must align with your processes and your people, so understanding exactly what they are, how they are used, and who the key stakeholders are, will help you identify the most suitable ERP system for your local authority.
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Focus on value
Identify the specific challenges you aim to address in your business case. With a new system, focus on delivering the benefits it will bring to your local authority.
Understand the true full cost of ownership over the system lifespan. Be careful about buying capability and complexity beyond your needs as it comes at a heavy price.
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Adopt or adapt
No system works out of the box. They all have significant configuration options, and some have templates to allow fast set-up.
Choose a system where you can adopt the way it was designed to work. Adapting systems beyond their core configuration leads to problems – so be sure to choose the one which works for you and the ways you want to work.
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Ensure buy-in from your people
Change isn’t always welcomed by everyone. Adapting to new ways of working and transitioning between systems can be challenging for many.
Take your team with you! Ensure everyone has the necessary resources, access to information and training, and management support from the start to keep their buy-in.
How we can help
Moore Insight is a trusted finance and business digital transformation partner. Since 1991, we have helped countless local authorities, government departments and agencies implement and fine-tune their systems and processes.
From reviewing and selecting options to implementing and optimising systems, we can help you with every stage of your journey.
If you are interested in finding out more or want to start an ERP project of your own, please contact our experienced team.
Call 020 7952 4690 or email us at info@moore-insight.com
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