Is your ERP supporting projects or just recording them?

One thing an ERP system does very well is capture project data and record it for posterity. This is an important feature, especially in a regulatory environment where up-to-date, ‘as-built’ project information might need to be accessed quickly to meet Building Regulations and Golden Thread requirements.

However, if that’s the main thing your ERP system is doing, you might be missing out on a range of benefits. Construction leaders should expect their ERP system to actively support projects rather than just record them.

Recording past activity vs enabling action today

Recording past project data is valuable and gives construction companies a data-driven window into their operations that was simply not accessible before. For example, you can:

• See what was built, when it was done and the exact quality.
• Access past financial data to analyse and correct inefficiencies.
• Review sub-contractor performance in detail.

All of that enables you to make better, data-driven decisions in the future and wouldn’t be possible without your ERP. However, a good ERP system should not just be a retrospective tool. It should enable you to view, analyse, and use this data in real time, taking action today rather than waiting to look back in the future.

Site teams working around systems rather than with them

If your ERP system doesn’t support your project in the present, you could miss opportunities to correct mistakes and inefficiencies at a point in time that might have a real impact. If the software only ever allows you to look back, you might not see:

• Poor-quality work is happening on site, and rework is increasing.
• Your teams are not working with the most up-to-date information.
• Cash flow problems are getting out of control.

It’s very little use seeing them happen later when you’re looking back at the recorded date. By then, it might be too late, and the issues could have grown into a real problem or threat to your business.

However, if your ERP system supports you day to day, you will be able to spot signs of your team working around the software and correct the behaviours before the problems become damaging.

Growing disconnect between operational reality and system data

If your ERP system records projects rather than providing real-time, data-driven support, you will see a growing disconnect between system data and operational reality. Without a constant feedback loop, your team will begin making their own decisions based on incomplete data, leading to:

• Your ERP works differently for different people.
• Incomplete data and uncertain regulatory compliance.
• Unnecessary confusion, rework, and site slowdowns.

The wider the gap between data and reality grows, the less useful the system becomes and the less your team will trust it. This cycle will eventually render the system as a whole useless. Even worse, you won’t see it happening until it’s too late if you are only able to see it in retrospect because the ERP isn’t actively supporting you with insights.

What ‘good’ project-level ERP support looks like

Going live with an ERP system is an important milestone, but it’s also just the start of the process. Your ERP’s real value – or not – will be determined by how it performs in the months and years after installation. That requires consistent investment and strong support to benefit from:

• Fast, reliable help when your team needs it to eliminate confusion, errors and uncertainty. This is key to maintaining and maximising efficiency.
• Real-time, data-driven insights which enable informed, strategic moves to scale your business, streamline operations, automate unnecessary tasks and more.
• Scheduled, practical reviews with your ERP provider to set priorities, solve issues which have arisen and develop training in areas where your team are struggling.

Good, project-level ERP support is about more than recording data. It’s about how you use the system and ensure it stays relevant to your evolving needs. The success of your system is measured by the strategic decision-making it enables and the ways it makes life easier for your team on a daily basis.

Enabling better decisions through ERP support

Your ERP can help you manage every aspect of your operations, so you can improve decision quality, make your time go further, and operate with absolute trust that your business is functioning as it should.

Want to learn more about how good ERP support can transform your business? Contact our team today for expert advice.