Enterprise Resource Planning (ERP) systems are powerful and complex tools for managing yourbusiness. Qualified professionals with ERP skills help keep projects on track,and like many technology specialists, they are in high demand. They align the ERPimplementation with business functions; help shape user experiences that enhanceperformance; help manage expectations regarding budget, schedule and resources; and managechange and contingency plans.
What Is ERP?
ERP systems help integrate and manage critical business processes within a company, fromfinance, sales and marketing to procurement, inventory, the supply chain and HR. ERP can be considered the backbone of an organizationbecause it encompasses so many systems and data sources. ERP software can be deployed on-premises or in the cloud, although more companiesare choosing cloud implementations thanks to a lower total cost of ownership and the abilityto get the system up and running faster.
Today’s ERP systems handle many advanced tasks such as real-time reporting and analysisaswell as automating business processes. A good ERP vendor can help companies become moreadept at predictive analytics, integration with internet of things (IoT) technology and eventhe application of artificial intelligence (AI).
What Is an ERP Professional? What Do They Do?
Because ERP systems manage so many aspects of the business and usually require integrationwith other systems, they can be complex, requiring companies to hire ERP professionals tohandle the deployment. These professionals have specialized ERP skills and knowledge to notonly get an organization up and running on ERP software—whether that’s for thefirst time oras an upgrade to a new system—but also manage the project, drive changemanagement initiatives and educate users.
ERP professionals typically fall into a few broad categories:
Functional consultants are involved in the high-level strategic thinkingthat underpins an ERP implementation or migration. They provide insight into managing theworkflow processes of various departments, including human resources, accounting, sales andmarketing, and materials management—which all influence the implementation strategy.
Technical consultants are responsible for the tasks required to implement anew ERP solution. They handle programming, integration, installation and customizing thesystem to meet the company’s requirements. They also set up automation and reportingtoolsthat various employees need to facilitate their jobs.
Techno-functional consultants play hybrid roles. Theyunderstand both the business processes and the technical requirements for a particular areaof ERP, like inventory or finance, and can work on the implementation and management end toend.
Which ERP is best for your company?
What all ERP professionals have in common is an understanding of how ERP works within anorganization. They can map software to the business problem, adjust strategies as needed,assist with business process improvement and change management, and see an implementationthrough the initial planning stages all the way to go-live.
3 Types of ERP System Implementations
Organizations can choose from three models for implementing their ERP systems: in the cloud,on-premises or in a hybrid model.
1. Cloud
In a cloud ERP implementation, the entire system—hardware and software—is hostedby an ERPprovider. This eliminates the need to sink capital into servers and other equipment, as wellas hire extra technology specialists to install and maintain the equipment. Theseimplementations typically are faster, and systems are easier to deploy and maintain.However, the broad adoption of cloud ERP solutions stands toexacerbate an existing ERP skills gap, particularly when it comes to soft skills likedefining business requirements and working with employees and stakeholders.
2. On-premises
On-premises implementations are hosted entirely on a company’s own servers. The companyisresponsible for maintaining the software and hardware, including patches and regularupgrades. Companies that choose an on-premises implementation typically do so because theywant to customize their ERP software extensively, although the best cloud ERP solutions alsooffer robust customization.
3. Hybrid
A hybrid ERP implementation combines features of bothcloud and on-premises ERP. For example, a company might have a heavy investment in anon-premises system but want to introduce functionality for a business subsidiarythat’s onlyavailable with a cloud solution. It can implement a two-tier ERP system that syncs data between theon-premises and cloud solutions .
Top 4 ERP Skills for an ERP Professional
Given the complexity of an ERP system, professionals need to have a variety of skills to makethemselves invaluable to organizations seeking help with an ERP deployment.
What does an ERP consultant do?
An ERP consultant needs to understand the existing software landscape and document existingERP configurations in preparation for a new system. As part of their responsibilities, theyalso need to serve on the change management and technical team, write design specificationsbased on the organization’s requirements, and offer insight and advice to management.
What skills does an ERP consultant need?
Not every ERP professional will have all these skills, but a good one will be able to drawfrom technical, managerial, professional and soft skills to contribute to the team.
Technical skills. Technical and techno-functional ERP professionals musthave the knowledge and experience to implement hardware and software.
These skills can come from hands-on experience in ERP development and can include codingskills. As ERP systems from different vendors can vary greatly, these professionals need toknow the ins and outs of each system with which they work. ERP vendors typically offercertifications for ERP consultants, which can help professionals demonstrate their knowledgeof a specific system.
Professionals may also need big-data and data-management expertise, knowledge of APIs andconnectors, and other specialized knowledge in newer technology like AI, predictiveanalytics and robotic process automation. Other skills required include the ability todevelop custom reports, work with the legacy ERP system (if there is one) and datamigration.
HR and management skills. A large part of any ERP implementation is keepingthe project on track. Functional and techno-functional consultants need to be able to findthe right people to staff the project, as well as delegate tasks and ensure those tasks stayon schedule. They also must be able to manage any third-party vendors as well as theinternal team. This is particularly important during a cloud implementation; ERP consultantsneed to ensure service level agreements and goals are met, regardless of where the team isbased.
They’ll also need to be involved in managing any of the changes to business processesthatcome with a new implementation, as well as risk and crisis management should something gowrong. Planning skills are also critical, as consultants work with different departments andvendors to determine the project timeline and requirements.
Project management skills are also essential. Working with remote teams requiresaccommodating schedules, setting up formal and informal communication channels, anddeploying remote project management and training solutions.
Professional skills. ERP implementations help business units achieve ahigher level of efficiency, so ERP consultants need professional skills in the functionalareas that will be affected. These could include skills in accounting and finance, sales andmarketing, supply chain management, materials management, and purchasing and procurementprocesses.
These skills are necessary to assist with setting up workflows that align with businessprocesses. ERP consultant résumés often include “businessrequirements” as a skillset. Thismeans they’re able to prepare business-requirements documents, translate therequirementsinto technical specifications and assist with designing the ERP system to meet thoserequirements.
Soft skills. ERP implementations involve people as well astechnology—andthere may be many people involved, from end users to executives. Some of the most importantERP skills are soft skills: collaboration, teamwork and conflict resolution. Just asindividual business processes and systems need to work together, so do people.
Consultants need excellent communication skills to lead an ERP implementation or upgrade,including the ability to communicate well in writing. They also need to be able to trainothers on the system and rally the team if the project gets off track.
Finally, they need a certain amount of political acumen to build relationships within theorganization. This requires knowing how to compromise and what to emphasize when speaking todifferent stakeholders about the implementation’s effect on their department. Yourvendorwill often have a professional services teamthat can handle implementations for you.
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How to Become an ERP Consultant
Formal education. Most ERP professionals have a bachelor’s degree,typicallyin a field like computer science or IT. Some ERP consultants may have a businessadministration degree, either at the bachelor’s or master’s level.
Experience and background. Additionally, ERP consultants usually have abusiness or technology background. Some companies will want ERP consultants with accountingexperience. Most consultants have worked on ERP implementations as part of a team;experienced consultants may have worked on ERP systems in a variety of industries.
Certifications and requirements. Being certified in specific ERPsystems is definitely a plus for consultants. These certifications demonstrate tocompanies that the professional has undergone comprehensive training and has expertise inthe system. Obtaining certification often includes multiple weeks of instruction, experiencein implementing the software and sitting for an exam.
Industries That Use ERP Professionals
Businesses of all sizes in virtually all industries use some form of ERP—includingmanufacturing, retail, third-party logistics, oil and gas, consumer packaged goods,aerospace and defense, construction, and food and beverage. While small companies may relyon accounting software, most will start augmenting those accounting tools with inventory orsales order add-ons as they grow.
These point solutions can be sufficient for a time—but once companies reach the pointwherethey need an integrated suite of software to tie together business operations, optimizeefficiency and grow revenue, they generally realize they need an ERP solution. At thatpoint, they need to consider options for a cloud, on-premises or hybrid ERPimplementation—and look for the right ERP professionals to help ensure success.
