In April, the construction industry lost over 925,000 jobs due to a decrease in demand. For many construction companies, this has had a devastating impact on efficiency. In 2021, more construction companies are going to have to learn how to do more with fewer resources.
One of the best ways to do this is to use an ERP system with cloud implementation. A cloud ERP will provide you with a faster way to switch to a new system for a reduced cost.
ERP cloud implementation provides more benefits than traditional on-site ERP systems. These benefits include greater flexibility, scalability, automatic upgrades as well as fewer operational expenses. Unfortunately, cloud ERP implementation failure is extremely common, especially in the construction industry.
If you want to know how to avoid common cloud ERP implementation mistakes then check out our complete guide.
How Can ERP Systems Help The Construction Industry?
Employees switching between apps can severely cut down on productivity. One study that analyzed around 5 million hours of employee desktop activity showed that workers switched between work-related apps around 1100 times during the workday.
The study also showed that workers are often overwhelmed by using too many apps. Leading to errors, inefficiencies, and slowed production that could be automated.
One of the best ways to mitigate this problem is by using a cloud-based ERP solution or an enterprise resource planning system. In the construction industry, ERPs can make functions like ordering materials, and billing clients simpler by collecting them in one platform. The ERP system you use for your construction company should be software specially designed for the unique demands of construction companies.
Ideally, ERP software should include the following features:
- Construction financial management
- Workflow & Approvals
- Modules for your needs
These tools can help control costs as well as make the process more efficient.
Create a Cloud ERP Implementation Team
Before you start the ERP implementation process, you should create a dedicated team that ensures the transition runs smoothly. You need to find people who understand your company and the apps you use most commonly.
The basic members that make up your team should consist of:
- Project manager- This person will lead your team and make sure everything that takes place is on time and within budget. This ideally should be someone either from inside or outside the company. You want someone who has experience implementing ERP systems previously. This should be someone who understands the apps that are most frequently in your construction company.
- App analysis- This person handles migrating data from the old system to the new one.
- App developer- This role consists of someone who knows how to change and customize the ERP system for your company.
- Quality Assurance Test Engineer- This team member performs system tests and warns of any problems before they occur.
Keep in mind that these are just the most basic roles that you’ll need. You may also include a more expanded team depending on the size of your company. Other staff members that may need to be in close contact with the implementation team are accountants, engineers, warehouse workers, and sales staff.
Additionally, having a trustworthy ERP vendor that has your best interests in mind will ensure that everyone is on the same page and that your needs are met.
Set Up a Plan for Implementing Your ERP System
To set up a plan, you need to be sure that your team is aware of the steps they need to take during the implementation. It’s also important that your employees are updated every step of the way so that they are prepared when the new system launches.
Any plan you create should include the following features: a budget, an implementation schedule, data migration, training, and analyzing the results.
If your employees are not updated and prepared you may face some resistance when implementing your new system.
Make a Budget
Creating a budget is one of the most important steps when implementing a cloud ERP. It is also the hardest as it is difficult to predict what complex problems may come up.
Having a well-designed budget ensures that you don’t have any cost overruns when implementing your new cloud ERP system.
Migrate Your Data
This is the most important step in shifting to a new company. Your app analysis should be the primary party responsible for data migration though you may be asked to assist with setting up a database, data cleansing, and testing.
Train Your Employees to Use Your Cloud ERP
Providing adequate training will help your employees get ready to start working with your cloud ERP system. It can also reduce the resistance that your workers may have when adopting a new system.
You typically have the option of offering in-person classes which ensures that all employees attend but can be inconvenient depending on the size of your company. As well as the option of online classes and webinars.
Online classes let you offer specialized training to your employees and can be more convenient when working with a lot of employees.
Analyze the Outcome
The only way to decide if your cloud ERP has been implemented successfully is to track your progress after you have implemented your system and analyze your findings. Some specific metrics to keep in mind that may help you analyze your success are:
- Client response- A good way to gauge if your ERP system is working is to see if you’ve improved your customer relationships. Some good signs are increases in turnaround time and a decrease in time spent processing orders.
- Productivity- This is the most important metric to measure. It determines how successful you have been with your ERP. You need to be sure that your company sees an increase in productivity and a decrease in downtime.
Return on Investment- The ROI is the best way to determine if your cloud ERP has been a financial success. This metric tells you if you made back your initial investment in the ERP.
Find the Best ERP System For Your Construction Company
Implementing cloud computing in the construction industry requires a careful plan and analysis. You will need to create an implementation team, make a plan, design a budget, and migrate your data. Next, you’ll have to train your workers and analyze the results after you go live.
Taking these steps will help you smoothly switch to your new cloud ERP. Using a cloud-based ERP system will make your construction company more efficient and save you time and money.
If you need help getting finding the right ERP for your construction company then get in touch with us today!