How can you translate business requirements into ERP requirements?

All are valid points with the exception of "holes in existing processes you'll need the system to plug". Software doesn't fix bad business process. Best practice fixes bad business processes. You can check out our recent blog posting (the first of a mini series that we are doing) that discusses the proper steps any business should take when deciding to upgrade or purchase business software.

http://www.discretemanufacturingerp.com/manufacturing-news-blog/bid/122432/St...

Thanks,
Laurence
www.tlcgroupinc.com
www.discretemanufacturingerp.com

Gabriel makes some really good points. A good starting point for an RFI or RFP is to have a documented set of business process maps, together with a list of prioritized gaps and issues. That way, you can visually identify 1) the key, non-negotiable existing requirements you'll need an ERP system to satisfy, and 2) the holes in existing processes you'll need the system to plug.

This discussion seems to have progressed more along the lines of RFI / RFP processing. That is a topic I'm pretty familiar with...

More on Stupid SAP Vendor – Partner Selection RFI-RFP Processes
http://www.r3now.com/more-on-stupid-sap-vendor-partner-selection-rfi-rfp-proc...

A couple of posts on the subject of where most software companies, and the consulting companies are completely missing the boat relate to the lack of an actual BUSINESS focus on the implementation.

To that end the basic requirement is to change how you go about ERP or business software projects. If there is not a clear business focus that goes beyond operations then you are not very likely to translate business requirments into ERP requirements. The problem is that operations is just about all the consulting companies and most of the software companies know. Few of them have moved into the key areas of helping companies innovate their products and services or in how to acquire or retain customers. Fewer still have any idea about how to help companies address a globally dynamic marketplace. They are so focused on transactional processing like how can I get that requisition or PO processed, or how do I record that inventory movement, etc., that they have completely lost sight of what business is all about. Business is about sales, markets, and customers through selling more desirable (i.e. innovative) products or services.

These posts address a lot of that perspective. And where the industry is going is in a direction that makes business software a commodity and the businesses they support commodities as well...

SAP Implementation is an Investment NOT an Event
http://www.r3now.com/sap-implementation-is-an-investment-not-an-event

Where do you Start with SAP Return on Investment or SAP ROI?
http://www.r3now.com/where-do-you-start-with-sap-return-on-investment-or-sap-roi

I offered more information on this whole paradigm adjustment for business software implementations on another FOCUS question...

How do you devise a strategy-driving ERP plan?
http://www.focus.com/questions/how-devise-strategy-driving-erp-plan/

Hi Laurence,

You're absolutely right, except that the question was about translating business requirements into ERP requirements. The holes you mention will not be fixed by ERP, as you said. Best practices will more or less help, depending on what each company does and how.

Ideally, companies should review their business processes completely (or at least the most important ones) and change them according to their needs and specific requirements of their company, not only the industry. And that includes change management, which is also not covered by ERP.

Most ERP vendors also offer services for business process modelling or even re-engineering, change management, etc., but they rarely adapt them to the specific needs of each company (unless you're ready to pay extra - a lot extra, usually)

There are some great recommendations here. I've asked a follow up question to this, regarding specific action items buyers should take to make sure they're solving their real business issues:

http://www.focus.com/questions/when-evaluating-erp-systems-how-do-you-make-su...

Thanks in advance.