Your ERP requirements have to be clearly defined prior to commencing the research and evaluation of your various ERP options. If you have been tasked with gathering information about possible enterprise resource planning software solutions for your company and you are about to begin the research phase, follow the instructions below.

You can use this sample ERP requirements checklist to get an idea of what businesses like yours look for and what the ERP research process looks like.

Defining your ERP requirements starts with understanding the vendor selection process

If you are evaluating ERP (Enterprise Resource Planning) solutions you will no doubt be bewildered by the number of choices available in the ERP market. Questions about Cloud vs On-premise, Tier 1, 2 and 3 products, web, E-commerce, EDI, paperless warehouse, choices of the database and a whole lot of other questions will need to be answered.

When evaluating ERP solutions, it is important that you have a process in place for vendor selection.

This process should include a structure that has an emphasis on running a complete evaluation including:

• Online investigation of potential solution providers;
• High-level requirements analysis;
• Demonstration of capability;
• The high-level scope of works;
• Assessment of implementation methodology;
• Interviews with implementation team members;

More information about the appropriate ERP selection process is available here.

Let’s assume you are running the suggested ERP selection process. This is a somewhat formal structure to ensure downstream implementation success. However, you will still require a level of detail associated with defining the functional and technical ERP requirements.

Here are some ideas to get your thinking started with the ERP requirements definition process for your business.

Defining Your Business ERP Requirements: Sample Checklist

We need to start our ERP selection process by looking internally within the business to answer questions about what functionality our business requires from the ERP system. This process starts at a high level and then drills down into each functional area of requirement.

What do we want to achieve by implementing a new ERP solution? It is always worthwhile to ask the question what does success look like for our business? In six or twelve months time, when we have successfully implemented a new ERP solution, how will our business look? Typical strategic benchmarks include:

• Improved Cash Flow: Debtors days reduced from 75 days to 50 days for example.
• Automation of Tasks: Specific instances where automated workflows eliminate manual entry and save measurable administrative hours.
• Improved Customer Service: Giving your sales teams mobility devices and access to CRM for instantaneous retrieval of customer information before account management visits, or giving salespeople the ability to instantly access information associated with customer orders, delivery dates and stock availability.
• Automated Reporting for Quicker Timeframes: Month end accounts to be finalised and published within six days of month close to provide timely information for better decision making.

When considering a new ERP solution, you will want to prepare your detailed ERP requirements list. The items below represent a comprehensive functional checklist framework to guide your scoping phase.

Technical and Architecture Requirements

Your IT team must consider cloud versus on premise deployment, mobility and other core technical parameters to ensure infrastructure alignment:

• Cloud versus on premise architecture options
• Choice of underlying relational database
• Client computing requirements and operating system compatibility
• Native integration to Microsoft Office and Microsoft Outlook
• Server requirements if you choose an on premise deployment
• Development platform open capabilities and software development kit details
• E commerce integration capability for digital sales channels
• Mobility options and dedicated application availability
• System updates and upgrade process frequency
• Network bandwidth requirements for regional locations
• Third party integrated solutions and complementary software availability
• Client access options with specific reference to remote access requirements such as web client versus remote desktop

Financial Management Requirements

Your ERP evaluation questions as they relate to the financial modules should focus on financial reporting, ATO compliance, management accounting, timely processing of information and deep automation of ledger tasks:

• Financial reporting with direct drill down to the source transaction
• Cash flow analysis and advanced cash flow forecast reporting
• Flexible chart of accounts structure
• Dimensions and cost centre accounting for department tracking
• Budgets including the ability to load and compare multiple budgets
• Multi company accounting and corporate consolidation reporting
• Payroll integration compatibility
• ATO reporting requirements including automated BAS generation
• Fixed assets management module
• Comprehensive cash management and bank reconciliation functionality

Distribution and Logistics Requirements

For wholesale distribution environments, focus your questions on automated purchasing, strict inventory management and complex logistics control:

• Warehouse management system options and bin location functionality
• Scanning and paperless warehouse execution options
• Purchase planning and material forecasting tools
• Serial number tracking and batch traceability for compliance
• Kitting requirements and light assembly functionality
• Structured stock take and cycle counting capabilities
• Goods receipting processes and freight management integration
• Electronic Data Interchange requirements for major retailers
• Purchase orders with automated workflow and multi level approvals
• Multiple units of measure management across buying and selling
• Back to back ordering capabilities
• Flexible price lists and promotional matrix setup
• Stock ageing reports and stock expiry date visibility
• Manufacturing Requirements

Manufacturing enterprises require tools focused on detailed production planning, capacity scheduling and resource allocation:

• Material Requirements Planning engines
• Visual production scheduling boards
• Multi level bill of materials with sub assemblies
• Works orders creation and tracking
• Routing steps and work centre definition
• Work in Progress tracking through the shop floor
• Shop floor data capture methods
• Resource planning and capacity constraint analysis

Customer Relationship Management Requirements

Focus on the sales, marketing and post sale service processes to move your customer interactions from basic tracking to complex automation:

• Marketing automation and targeted newsletter emailing
• Sales workflow management and pipeline reporting
• Mobility capabilities for real time field updates
• Marketing campaign management and return on investment tracking
• Service management and automated allocation of support tickets
• Service scheduling and mobile field technician capabilities
• Service contracts management, timesheets and warranty tracking

Reporting and Analytics Requirements

Reporting and analytics are key for most businesses looking to streamline their decision making process and become proactive about their corporate strategy:

• Live Key Performance Indicators relevant to specific roles
• Interactive dashboards with visual charts
• Real time analytics processing without system lag
• Pre built data sources, data views and analytical cubes
• Pre built standard operational reports

Summary

It is important to run a structured process of ERP selection to ensure success for your business. To do this, you need to define what success looks like for your organisation in the short, medium and long term. Defining your ERP requirements checklist is a key step that businesses looking to implement a new system should take prior to beginning the vendor evaluation phase.

At Leverage Technologies, we have been helping Australian businesses choose and implement Enterprise Resource Planning systems for over a decade.

For more information or to speak to a consultant near you today, call 1300 045 046 or email [email protected].