ERP Consulting explained: Definition, Cost, Benefits, Services & Expertise

A guide about ERP Consultants and their value
ERP - Publications ERP Consulting By: Dr. Harald Dreher - May 31, 2023

Benefit from 3 decades of experience in IT strategy, digitalisation, ERP consulting and process optimisation...

Imagine a world where your business processes run seamlessly, your employees are more productive, and your profits soar. This dream can become a reality with the help of ERP consulting. In this blog post, we will dive into the world of ERP consulting, exploring its definition, benefits, services, and how to choose the right partner for your business. So buckle up and get ready for a transformative journey that will change the way you view enterprise software implementation.

ERP Consulting explained

Imagine a world where your business processes run seamlessly, your employees are more productive, and your profits soar. This dream can become a reality with the help of ERP consulting. In this blog post, we will dive into the world of ERP consulting, exploring its definition, benefits, services, and how to choose the right partner for your business. So buckle up and get ready for a transformative journey that will change the way you view enterprise software implementation.

 

Short Summary

  • ERP consulting is a specialised service that assists organisations in deploying enterprise software solutions to improve business profitability.

  • It involves functional, technical and project management consultants providing essential services such as needs analysis, configuration/customisation and user training/support.

  • Choosing an ERP consultant with expertise, experience and positive client references is key for successful implementation of the system.


Table of Contents

  1. Understanding ERP Consulting
  2. Defining ERP Consulting
  3. The Need for ERP Consulting
  4. Types of ERP Consultants
  5. Key ERP Consulting Services
  6. Factors Influencing ERP Implementation Duration
  7. Estimating ERP Consulting Costs
  8. Advantages of ERP Consulting
  9. Choosing the Right ERP Consulting Partner
  10. Summary

 

Understanding ERP Consulting

In a rapidly changing business landscape, staying ahead of the competition is crucial. One way to achieve this is by harnessing the power of ERP (Enterprise Resource Planning) software. ERP systems allow businesses to manage and automate various business operations, from finance and supply chain management to human resources and customer relationship management.

But implementing an ERP system can be a daunting task, and that's where ERP consulting comes in. ERP consulting is a specialised service that assists organisations in deploying enterprise software solutions. With the aim of improving business profitability, ERP consultants help businesses navigate the complexities of ERP software, ensuring that the implementation process is streamlined and effective.

They provide valuable insights and expertise in business process management, software development, and change management. The result? A well-executed ERP implementation that helps businesses achieve their objectives and grow.

ERP Consultants discussing a strategy with a client

Defining ERP Consulting

ERP consulting is a service that assists organisations in implementing and optimising Enterprise Resource Planning (ERP) software systems. ERP consultants specialise in designing software systems that streamline business processes, providing training, support, and troubleshooting for ERP programs. They also assist in system implementations and upgrades, as well as performing software upgrades. In short, ERP consultants are the guiding force behind successful ERP implementations.

If you're uncertain about which ERP system is most suitable for your organisation or how to best utilise it, then ERP consulting may be the answer. Additionally, if you're looking to maximise the potential of your current ERP system, consulting can help you achieve that. With a range of services, including needs analysis, configuration and customisation, data migration, and user training and support, ERP consultants ensure that your ERP system is tailored to your unique business needs and operates at peak efficiency.

 

The Need for ERP Consulting

ERP consulting plays a vital role in helping organisations optimise their business processes and increase efficiency through the implementation of an ERP system. With expertise in ERP implementation, software configuration, data migration, user training, and project management, ERP consultants provide services that address the unique needs of each client, ensuring that their ERP system is implemented effectively and in line with their business objectives.

The advantages of ERP consulting are numerous, including cost reduction, increased efficiency, and streamlined business processes. Furthermore, it provides organisations with improved visibility into their operations, better customer service, and increased profitability. By offering services such as needs analysis, configuration and customisation, data migration, user training, and support, ERP consulting ensures that your business reaps the full benefits of an ERP system, transforming your operations and driving growth.

 

Types of ERP Consultants

The world of ERP consulting is diverse, with various types of consultants specialising in different aspects of ERP implementation. Each type of consultant brings their unique skills and expertise to the table, ensuring that your ERP system is implemented effectively and tailored to your business needs. It is essential to understand the different types of ERP consultants, their roles, and the value they bring to your ERP implementation project.

As mentioned earlier, there are three main types of ERP consultants: Functional Consultants, Technical Consultants, and Project Managers. Each consultant plays a crucial role in ensuring the success of your ERP implementation, from understanding your business requirements and configuring the software to providing technical support and managing the entire implementation process.

Let's delve deeper into the roles and responsibilities of each type of ERP consultant.

 

Functional Consultants

Functional Consultants are the bridge between your business needs and the ERP software. They are responsible for understanding your organisations business processes and requirements and configuring the ERP system to accommodate them. They test the software, provide training, and offer guidance and assistance to businesses on technology that can perform necessary tasks and processes.

In essence, Functional Consultants ensure that your ERP system is aligned with your business objectives and runs smoothly, helping you achieve the desired outcomes.

 

Technical Consultants

Technical Consultants are the wizards behind the scenes, ensuring that your ERP system operates efficiently and effectively. They provide technical support and upgrades, develop customised ERP software, and optimise your company's software for maximum efficiency.

With a background in information technology and management, Technical Consultants possess the skills and expertise required to tackle the technical challenges of ERP implementation, ensuring that your system is tailored to your unique business needs and runs smoothly.

 

Project Managers

Project Managers are the captains of your ERP implementation ship, ensuring that your project is completed on time, within budget, and to the satisfaction of all stakeholders. They are responsible for planning, executing, and closing projects, overseeing every aspect of the ERP implementation process. From constructing and maintaining a detailed project plan to managing project teams and interacting with stakeholders, Project Managers ensure that your ERP system is implemented effectively and delivers the desired results.

Project managers are the key to a successful ERP implementation. They are responsible for managing the project timeline, budget, and resources, as well as ensuring that all stakeholders are kept informed and satisfied. They must also ensure that the project is completed on time.

ERP Consultants discussing a project plan

Key ERP Consulting Services

Now that we've explored the different types of ERP consultants, let's dive into the key services they provide. ERP consulting services are vital to the success of your ERP implementation, ensuring that your system is tailored to your unique business needs and operates at peak efficiency. By offering services such as needs analysis, configuration and customisation, data migration, and user training and support, ERP consultants help you get the most out of your ERP system and drive growth in your business.

Each of these services plays a crucial role in the ERP implementation process, addressing specific challenges and requirements that your business may face. Let's take a closer look at each service and understand its importance in the ERP consulting process.

 

Needs Analysis

Needs Analysis is the foundation of a successful ERP implementation. It is a formal and systematic process of identifying and evaluating the training needs of an individual or group, ensuring that your ERP system is tailored to your unique business requirements. The process involves gathering pertinent information about your current situation, recognising the discrepancies between your current and desired state, and formulating a plan to bridge those discrepancies.

By conducting a thorough needs analysis, ERP consultants can help you identify areas for improvement and offer guidance on how to optimally utilise your ERP system.

 

Configuration and Customisation

Once the needs analysis is complete, the next step in the ERP implementation process is configuration and customisation. Configuration involves the utilisation of native tools to alter the behaviour or features of a software system, while customisation necessitates substantial coding changes to an existing software system to suit the specific requirements of an organisation.

By tailoring your ERP system to your unique business needs through configuration and customisation, ERP consultants ensure that your system operates efficiently and effectively, helping you achieve your desired outcomes.

 

Data Migration

Data Migration is the process of transferring data from one storage system or computing environment to another. It involves selecting, preparing, extracting, and transforming data and permanently relocating it from one computer storage system to another.

Data migration is a critical component of ERP implementation, as it ensures that your business data is seamlessly integrated into your new ERP system. With extensive preparation and post-migration activities, such as planning, creating backups, quality testing, and validating results, ERP consultants ensure that your data migration process is smooth and error-free.

 

User Training and Support

User Training and Support is the final piece of the ERP implementation puzzle. It is a process of providing users with education and guidance to use a particular software or system, as well as offering assistance when they experience difficulties or have queries.

Effective user training and support are essential for ensuring that your employees are able to make the most of your new ERP system, maximising productivity and reducing errors. By offering various forms of training and support, such as online tutorials, in-person training, and technical support, ERP consultants help your employees adapt to the new system and utilize it to its full potential.

ERP Consultant analysing data from an ERP System

Factors Influencing ERP Implementation Duration

Implementing an ERP system can be a complex and time-consuming process, with many factors influencing the duration of the project. Understanding these factors is crucial for setting realistic expectations and planning your ERP implementation accordingly. In this section, we will explore the key factors that impact the duration of your ERP implementation, discussing how software services/modules, the number of users, and customisation requirements can affect the timeline.

The duration of an ERP implementation is contingent upon the software services/modules, the number of users, and any customisation required. These factors can greatly influence the complexity of the project and, consequently, the amount of time it takes to complete. Let's examine each of these factors in detail.

 

Software Complexity

Software complexity is a measure of the difficulty associated with understanding, designing, implementing, testing, and maintaining software systems. It is a result of the functional complexity that the code is designed to enable and can be impacted by various factors, including the size of the codebase, the number of modules, the level of interdependence between modules, and the number of external dependencies.

The more complex the software, the longer it may take to implement, test, and maintain. By understanding and managing software complexity, you can ensure your ERP implementation is completed efficiently and effectively.

 

Number of Users

The number of users who will be utilising the ERP system also plays a significant role in determining the duration of the implementation process. More users mean more customisation and configuration needs, which can result in a more complex and time-consuming implementation.

Additionally, a larger user base may also require more extensive training and support, leading to a longer implementation timeline. By considering the number of users in your organisation and their unique needs, you can better plan and execute your ERP implementation.

 

Customisation Requirements

Customisation requirements are another key factor that can impact the duration of your ERP implementation. The more customisation your business requires, the longer and more complex the implementation process will be. Customisation can involve altering the ERP system to satisfy specific business requirements, which may necessitate technical software development and coding skills.

By carefully assessing your business's customisation needs and working with your ERP consultant to develop a tailored solution, you can ensure that your ERP system is implemented efficiently and effectively.

 

Estimating ERP Consulting Costs

ERP consulting costs can vary greatly depending on a variety of factors, such as business size, ERP system complexity, the number of end-users, and the extent of support and training required. Understanding these factors and their impact on your ERP consulting costs is essential for planning and budgeting your ERP implementation project.

In this section, we will explore the key factors that impact your ERP consulting costs and discuss how to estimate these costs accurately. The cost of ERP consulting is based on business size, ERP system complexity, end-users, departments, support, and training. By carefully considering these factors and working with your ERP consultant to develop a customised solution, you can ensure that your ERP consulting costs are accurately estimated and controlled.

 

Business Size

Business size has a considerable impact on ERP consulting costs. Generally, larger businesses necessitate more resources and customisation, thus increasing costs. Conversely, smaller businesses often have simpler needs and require less customisation, leading to lower costs.

By carefully assessing your business size and its unique requirements, you can better estimate and control your ERP consulting costs.

 

System Complexity

System complexity can result in unexpected complexities during implementation, which can consequently lead to increased consulting costs. The more complex the ERP system, the more challenging it may be to implement and maintain, leading to higher costs.

By understanding and managing system complexity, you can ensure that your ERP consulting costs are accurately estimated and controlled.

An ERP Consultant calculating costs for an ERP System

Advantages of ERP Consulting

ERP consulting offers a plethora of benefits for businesses, helping them achieve their objectives and grow. By providing valuable insights and expertise in business process management, software development, and change management, ERP consultants ensure that your ERP system is implemented effectively and tailored to your unique business needs.

In this section, we will explore the key advantages of ERP consulting, discussing how it ensures successful implementation and helps businesses avoid costly pitfalls. Some of the primary advantages of ERP consulting include successful implementation, cost savings, and enhanced efficiency.

By engaging the services of an ERP consultant, businesses can ensure that their ERP software is implemented effectively, helping them achieve their desired outcomes, and grow. Let's delve deeper into the advantages of ERP consulting.

 

Successful Implementation

Successful implementation is the cornerstone of any ERP project, and engaging the services of an ERP consultant can greatly increase the likelihood of success. By providing expert guidance, meticulous planning, and effective project management, ERP consultants ensure that your ERP system is implemented accurately, efficiently, and in line with your business objectives.

This results in cost reduction, increased efficiency, improved customer service, and greater productivity, helping your business achieve its goals and grow.

 

Cost Savings

ERP consulting can facilitate significant cost savings for your business by consolidating processes, eliminating manual tasks, and automating data entry. By streamlining processes and reducing labor costs, ERP consulting can help optimise efficiency, minimize expenses, and ensure that resources are allocated effectively.

This ultimately leads to increased profitability and growth for your business.

 

Enhanced Efficiency

Enhanced efficiency is another important advantage of ERP consulting. By streamlining processes, automating tasks, and utilising technology to reduce manual labor, ERP consultants help businesses maximise productivity, reduce errors, and improve data accuracy.

This ultimately leads to increased efficiency, better decision-making, improved customer service, and increased profits, helping your business thrive in a competitive landscape.

 

Choosing the Right ERP Consulting Partner

Selecting the right ERP consulting partner is crucial for the success of your ERP implementation project. The right partner can provide you with impartial advice and suggestions that prioritise your needs over any specific software vendor, ensuring that your ERP system is implemented effectively and tailored to your unique business requirements.

In this section, we will explore the guidelines for choosing the right ERP consulting partner, discussing the importance of requirements, specialisation, software partnership, industry experience, and references. By considering these factors and carefully evaluating potential ERP consulting partners, you can ensure that you select the right partner for your business, one that not only understands your unique needs but also has the expertise and experience required to ensure the success of your ERP implementation project.

 

Expertise and Experience

Expertise and experience are of paramount importance in ERP consulting, as ERP consultants must possess knowledge, experience, and project management skills to guarantee that ERP solutions are designed to fulfil the requirements of a business and are implemented successfully.

By evaluating the expertise and experience of potential ERP consulting partners, you can ensure that your chosen partner has the necessary skills and knowledge to guide your ERP implementation project to a successful conclusion.

 

Client References

Client references are a critical component of the ERP consulting partner selection process, as they demonstrate the successful outcomes of past projects and provide potential clients with an understanding of the firm's capabilities. By requesting and reviewing client references, you can gain valuable insights into the ERP consultant's track record and ensure that they have a proven history of delivering successful ERP implementations.

This will help you build trust in your chosen partner and set the foundation for a successful ERP implementation project.

 

Summary

In conclusion, ERP consulting is an invaluable service for businesses looking to implement ERP software and optimise their operations. By providing expert guidance, specialised services, and a wealth of experience, ERP consultants ensure that your ERP system is implemented effectively and tailored to your unique business needs. By choosing the right ERP consulting partner and carefully considering the factors that impact implementation duration and cost, you can ensure the success of your ERP project and unlock the full potential of your business. So don't wait - embark on the journey of ERP consulting today and watch your business thrive!

Frequently Asked Questions

An ERP consultant is a professional that assists companies in the successful implementation and deployment of Enterprise Resource Planning (ERP) systems. They specialise in resource planning, identifying key opportunities for optimisation, and providing guidance to ensure the system works in line with the organisation's goals.

Working with an ERP consultant can help businesses achieve their desired outcomes more quickly and efficiently.

To become an ERP consultant, one needs to have a strong background in business and technology. A Bachelor's degree in Computer Science, IT, or Business Administration is generally a requirement, and experience in related fields is highly valuable.

Furthermore, strong communication and project management skills are beneficial for success in the role.

ERP consultants are integral to businesses of all sizes. They provide valuable expertise in the implementation and management of Enterprise Resource Planning (ERP) systems, ensuring that the system's software is optimised for maximum efficiency.

They provide a crucial service for organisations looking to maximise their resource planning capabilities.

 

Do you have questions regarding ERP Consulting? Contact us! We are happy to help.
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Implementing an ERP system can be a complex and time-consuming process, with many factors influencing the duration of the project. Understanding these factors is crucial for setting realistic expectations and planning your ERP implementation accordingly." - Dr Harald Dreher