Your enterprise resource planning (ERP) system is likely one of the biggest back-office investments for your construction company. For many companies, it’s also the lifeblood of office operations, covering everything from finance and accounts payable to scheduling, job costing, and project management.
Because it is such a significant investment with so many tasks, making the most of your ERP is crucial. Replacing an ERP can significantly impact a business and add hiccups to a smooth workflow, not to mention the high cost of a new system and its many time-consuming implementations. Transitioning to a new ERP also brings challenges of data migration, training employees, and downtime between systems.
With all those frustrations and disruptions in mind, it’s beneficial to construction companies to strategically maximize the lifespan of the current ERP. Extending its life can delay the need for a costly upgrade or replacement, which can save resources. Plus, optimizing current systems ensures you get the full value from your investment and don’t leave money on the table by not utilizing all its features.
With the right strategies, your ERP can continue to meet your business needs even as your company grows.
Let’s dive into seven ways to extend the life of your current ERP — without impacting operations.
Making the most of your existing ERP starts by evaluating where it falls short so you can make adjustments. Consider the roadblocks and friction in your current ERP processes, including these common pain points for construction companies:
Conduct a system audit to identify specific limitations and areas for improvement. Keep a record of where processes are slowed down, frustrations because of system limitations, roadblocks caused by the ERP, and areas for improvement. And because the ERP is used differently by many different teams in the company, be sure to interview key stakeholders (such as the CFO, controller, and project managers) to understand their pain points and get a full view of the ERP’s current gaps.
Once you’ve identified gaps and areas for improvement in your current ERP, you can look for add-ons to enhance the functionality and add targeted tools. Adding on modern cloud-based tools can extend your ERP’s functionality without requiring a complete replacement. Add-ons are the best of both worlds: New, powerful features to meet business needs without the cost and frustration of replacing an entire ERP system. It’s a cost-effective way to bridge the gap between legacy systems and current business needs.
Here are common add-on tools for construction ERPs:
If you’re feeling frustrated or slowed by your ERP, the problem may not be the system. It could be the process. Many ERP frustrations stem from underutilization or a lack of employee training. ERP systems tend to be complex, so if employees don’t know how to use them properly or get the full value, they could be hitting dead ends or roadblocks. Inefficient workflows and untrained users make the ERP feel outdated.
To address this issue, invest in ongoing training for finance and project teams. Employees may have been trained when they first joined the company or when the ERP system was new, but that doesn’t mean their training is still accurate. With so many features, use cases, and changing business needs, it’s essential to keep teams engaged with the software and aware of its capabilities.
Aside from training, evaluating and streamlining processes where needed is important. Document workflows and look for inefficiencies that could be eliminated. This process should also include regularly reviewing ERP usage to ensure teams are leveraging all the features. If a team is complaining about a lack of functionality, it could simply be that they don’t know it exists.
One of the biggest complaints with aging ERPs is how they work with data. Technology and data analysis tools are advancing rapidly, and some older ERPs aren’t designed to work with data the way modern companies want. Aging ERPs can lead to data silos, manual data entry, and poor integration — all of which can cause inaccuracies and wasted time.
However, data issues alone aren’t enough to require a completely new ERP. Instead, data syncing between the field and back office on things like timesheets and project costs can be automated. Leverage APIs or middleware to connect your ERP with other business systems and expand its potential. You can also make data more accessible by implementing dashboards for real-time reporting and better decision-making.
Just like a car won’t run in peak condition without regular maintenance, your ERP system needs maintenance and upkeep to work at its highest levels. Maintenance is critical for longevity and an essential way to protect your ERP investment. Ignoring routine updates leads to performance issues, security risks, and compatibility problems. Regular updates often include new features and fixes that can enhance the ERP’s performance. If you feel stuck by your ERP’s limitations, it’s likely an update exists to improve the situation — you just have to install it.
To stay on top of ERP maintenance, partner with your ERP vendor or a third party for ongoing support. You don’t have to stay on top of new updates on your own. Establish a regular schedule for updates, backups, and system health checks. Even if there aren’t any new features to install, regularly running diagnostics can ensure the system is working properly. Finally, create a feedback loop to continuously address system bugs and issues. Users can submit feedback and elevate issues to be taken care of.
An ERP is a gold mine of data — if used correctly. Instead of investing in an entirely new system, you can lean into new features and integrations to expand your current system’s value. Tap into reporting features to uncover inefficiencies in processes or projects and leverage financial dashboards to improve forecasting and cash flow management.
Using reporting and analytics ties into the need for ongoing employee training. Train your team to use custom reports and dashboards for things like job costing, labor tracking, and compliance. As you track inefficiencies, look for add-ons that enhance reporting capabilities if your ERP’s native tools fall short.
Your ERP is a crucial aspect of your business and should be central to your long-term strategy. Although it can be wise to extend the life of your current ERP, delaying replacement indefinitely isn’t sustainable. Eventually, you’ll need to upgrade. However, balancing extending your ERP with future growth can be challenging. The goal is to maximize the ROI of your current ERP while planning for a smooth transition when the time comes for a new product.
As part of your ERP strategy, evaluate your ERP annually to determine if it still meets business needs. Even if a new platform isn’t on the horizon, budget for upgrades or a phased transition over several years. As you work to maximize the value of your ERP, document the lessons learned so your next implementation is even smoother.
Your ERP is the backbone of your operations—but that doesn’t mean you have to replace it to stay efficient.
With hh2, you can extend the life of your ERP by adding critical features like automated payroll, job costing, and real-time data access—helping your team work smarter without the need for a full system overhaul. As your business grows, hh2 grows with you, seamlessly integrating with your current ERP and ensuring a smooth transition when you're ready to move to the cloud.
Why wait for an expensive upgrade when you can maximize what you already have? Optimize your ERP today, and take the next step on your terms—with hh2 by your side.