The ever-evolving nature of the construction industry today demands that firms have both high levels of efficiency, coupled with well-ordered productivity to ensure success. As a result, many firms have invested in robust Enterprise Resource Planning (ERP) systems to significantly enhance the performance of their business operations and improve project management processes.
However, as the business landscape changes and technology evolves, it becomes crucial for leaders to evaluate their construction ERP system to make sure that it is scaling and accordingly.
With so many technical and operational aspects to factor into the decision-making process, here are 10 things to consider to yield long-term business benefits:
1. Is your business running on outdated technology?
One of the primary reasons why businesses switch their construction ERP platforms is because they are running outdated technology. Legacy systems most often lack the capabilities required to meet the demands and necessities of modern construction projects. Newer ERP systems and solutions leverage advanced technologies, such as cloud computing, artificial intelligence, and automation, to provide enhanced functionality and efficiency. By leveling up, and switching to a more up-to-date system, your business can take advantage of the latest tools and features that align with industry vertical best practices.
2. Does your current ERP adapt and scale to your changing business requirements?
Most businesses, including construction companies, experience some level of growth and expansion over time. But what if your current ERP system does not have the scalability or flexibility to accommodate your unique changing needs? Switching to a modern and robust ERP solution will allow you to scale operations seamlessly, adapt to new and changing market trends, and handle increased project volumes. A flexible ERP system ensures that you will be able to customize and configure modules based on your unique and specific requirements, enabling improved alignment with your business processes.
3. Does your ERP Platform offer integrated data and real-time reporting?
Construction projects most often involve multiple teams, various field sites, a number of departments, and various stakeholders who require access to real-time integrated data and reporting. Most legacy ERP systems lack modern integration capabilities resulting in data silos and non-optimized workflows. By upgrading to a more modern ERP, your business can see an overall centralization of your knowledgebase, an integration of various systems and applications, and implement real-time reporting across your entire organization. This not only improves further decision-making, but it also enhances team collaboration, and can foster a data-driven approach to project management.
4. Does your existing construction management solution have mobile accessibility?
With a high percentage of employees in construction being onsite workers, it’s mission critical for these project teams to have mobile access to project data, drawings and communications. A connected workforce with access to real-time data helps all parties drive integrated project delivery and speeds up time to make informed decisions with your team members while you are on the go. A modern ERP solution will provide mobile functionality to allow you to access critical project data, monitor progress, and communicate with teams from anywhere, using multiple devices. By switching to a mobile-friendly ERP, not only can you improve your overall productivity and responsiveness, but also enhance your global connectivity across your organization.
5. Are you equipping your Project Managers with the right tools they need?
Construction project managers have a lot on their plates and staying on top of so many things comes with its challenges. This is the case for many businesses --having an effective project management system is instrumental to providing team members visibility to all project data, processes and communications. For construction firms, switching to a construction-specific ERP system can provide comprehensive project management functionality, including features like resource allocation, scheduling, budgeting, and tracking. These essential tools allow for improved project planning, better collaboration between teams, and better control over project costs and timelines. When a company decides to upgrade their ERP platform, they will empower their project managers with the right tools to successfully execute and complete projects.
6. Are your regulatory compliance and risk management processes optimized?
No matter what country your organization is based out of, it will be subject to various regulatory requirements and compliance standards depending. Failing to meet these regulatory obligations can result in multiple penalties, extensive legal issues, and damage to your firm’s reputation. A modern ERP system can help you stay on top of your compliances by automating regulatory processes, maintaining audit trails, and generating all necessary reports required. In addition, these systems can often include risk management capabilities to identify and mitigate potential risks.
7. Does your ERP have CRM capabilities?
Building strong relationships with customers and maintaining customer satisfaction is a key component to driving growth. After all, a satisfied customer is also a referenceable client who can potentially help convert leads to closed deals. A construction ERP system with integrated CRM functionality can help you keep track of all your vital customer activities and communications, track any leads and opportunities, and provide overall better customer intelligence. By switching to an ERP with CRM capabilities, you can centralize your customer data, improve communication, and enhance customer satisfaction, ultimately driving acquisition.
8. Does your existing ERP provider provide you with high levels of support to help drive customer success?
Leading ERP providers are not just a technology provider that only provides technical support. Rather, they are a strategic business partner, offering you dedicated customer-facing teams such as customer success and account managers. Switching to a reputable ERP vendor with a proven track record in the construction industry ensures that you are receiving ongoing support and product updates, along with actionable recommendations (e.g. Quarterly Business Reviews).
9. What is the Total Cost of Ownership (TCO) and your Return on Investment (ROI)?
When making the decision whether to switch your construction ERP, consider the total cost of ownership, and ultimately your return on investment. Legacy systems may require significant investments in infrastructure, maintenance, and customization to keep up with your evolving needs. However, a modern ERP solution provider will offer you deployment options to select from — i.e., on-premise and SaaS. In addition, by understanding your technical infrastructure, technical risk tolerance and budget (both short and long-term), they can help your firm maximize IT spend, improve overall ROI, and help you allocate resources effectively.
10. Does your construction ERP seamlessly integrate with other back-end business systems you have in place?
Given that the majority of construction management software will need to integrate with other tools, it’s important to find out whether your new ERP has an open API interface or not. This ensures that it finds a variety of ways to connect with other complementary technologies. To highlight the importance of integrations, according to a Gartner report, “44% of transactional data … housed in ERP systems … are captured from integration or external partners.”2
By carefully evaluating your existing ERP system and considering these factors, you can make an informed decision about switching to a more robust solution that aligns with your business goals and helps you thrive in today's competitive construction industry