Guide to choosing the right ERP for a large govcon

Whether it comes to project management, overseeing financials, or business development, government contractors (GovCons) are always looking for ways to make the complex simple. One of the best ways to do that is through the use of enterprise resource planning (ERP) software.

The right ERP system – one that is easy to use and stress-free – will increase a government contractor’s (GovCon) potential for growth, enhance its operational efficiency, and reduce the risk of compliance failure.

But with the stakes so high, how do you ensure that you’re deploying your ERP software to its full potential?

At Unanet, we’re fortunate to serve some of the most innovative, creative minds in the government contractor arena. They shared some of the best practices they used for a smooth implementation of Unanet as their ERP solution.

Follow their guidance to set your ERP system up for success – no matter which provider you choose.

Start with recognizing the need for change 

For many government contracting companies, the march towards ERP implementation begins with a stark acknowledgment—continuing down the path of disjointed, legacy systems no longer cuts it.Whether you're bidding on new projects, working with compliance requirements, or trying to streamline back-office operations, tools like QuickBooks and Excel have graduated from being merely inconvenient to impeding growth.

The next is a tactical commitment to match your need with the right solution, one that is not only robust and scalable but purpose-built for the rigors of government contracts.

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Do your research 

Before you make the move to an ERP software provider, weigh your options to find the one that works best for you. Ask your sales rep questions based on what you’ll need the solution to do. Is it purpose-built for your industry's capabilities, or is it a generalized, one-size-fits-all tool?

In evaluating ERP systems for a large government contractor (govcon), it is crucial to assess each system's ability to manage project-based accounting effectively, the integration methods it offers, and how easily it can be configured to meet federal compliance requirements.

Ensure that the ERP system you select has the necessary capabilities to meet the volume and diversity of government contracts as your company grows. Anticipate your company's growth demands and choose an ERP that can scale effectively alongside your expanding operations in the government contracting sector.

When evaluating ERP solutions for a large govcon firms, it's crucial to consider the post-launch support services provided. This includes assessing the level of managed services such as implementation assistance, training resources, and ongoing system maintenance. It's essential to ensure that the ERP vendor offers comprehensive and reliable support to prevent any disruptions in operations post-implementation, safeguarding against being left unsupported or encountering issues once the system is in use.

Engage others who have already been in your place 

Transitioning from one tool to another doesn’t happen in a vacuum. You need to use the resources – and people – available to you to make it happen successfully.

 When considering an ERP system for your large GovCon, the ERP selection process is critical. If you have other colleagues within the GovCon industry who have successfully implemented the same ERP solution in the past, speak with them. Ask them how they did it. This can offer valuable real-world evidence on how you can best integrate it. If others within your company have used the tool in other roles during their career, ask their opinions as well. Look for pain points, hurdles, and how they overcame them. 

You can find these people through local events, by asking your ERP vendor for a connection, or at a tradeshow. Everyone in this industry is pretty helpful!

Organize and move your data  

For GovCons, project-based work demands a system with centralized accounting processes. Having all of your data under one ERP umbrella helps keep your teams organized while also making implementation much easier.

Project management is an essential aspect when implementing an ERP system in a large govcon. It plays a crucial role in planning, organizing, and coordinating the data migration process from existing systems to the new ERP.

 Identifying key personnel responsible for managing data and the systems used for data storage is fundamental to ensure a smooth transition and accurate data input into the ERP system. By incorporating effective project management strategies, such as defining roles and responsibilities, setting clear objectives, and establishing timelines, govcons can streamline the data gathering process and facilitate a successful ERP implementation.

Customize for efficiency 

When choosing the right ERP for large enterprises, it is essential to consider the system's capabilities and customization options. Evaluating the customization flexibility of an ERP system is crucial to ensure it can be tailored to meet the specific business needs of a government contractor efficiently. Opt for an ERP solution that offers ample capabilities and customization features to enhance operational efficiency and meet regulatory requirements seamlessly.

It is crucial to engage with the end users of the software to gather requirements for customization. By understanding their needs beforehand, the customization process post-implementation can be streamlined.

Find the balance between speed and accuracy 

In the race toward a new ERP, speed can often be misconstrued as the most important factor. However, prioritizing accuracy and thoroughness can lead to a smoother transition, particularly concerning regulatory requirement essential for government contract accounting.

Roll out your ERP system in manageable, defined phases. This cautious approach allows you to focus resources, ensure user adoption, and quickly address issues as they arise.

View each phase of your ERP implementation as a project management education. Capture lessons learned and pivot your strategy as necessary.

Cultivate user buy-in 

An ERP platform’s value is only as strong as its adoption rate. The most sophisticated software isn’t helpful without a team willing to use it. 

Devise a comprehensive training regimen that caters not just to roles and responsibilities but also to the individual. Customized learning paths can expedite the mastery of the ERP's features and workflows, leveraging the diverse capabilities of the users for enhanced efficiency and effectiveness.

Identify internal champions who can champion adoption from within. Their endorsement demystifies the process and instills confidence in their peers. If you’re having trouble selecting the right people, start at the top of the organization. When leadership buys in and encourages usage of a new solution, it helps adoption increase throughout the organization.

Once you’ve launched, establish a continuous feedback loop. User insights can highlight underutilized features or workflow inefficiencies, guiding your ongoing training and optimization plans.

Follow up to ensure long-term success 

As your implementation period ends and your ERP becomes part of your regular processes, regularly evaluate your system's performance against your evolving business needs. Adopt a mindset that embraces updates and system optimizations as opportunities, not interruptions.

Additionally, forge an ongoing partnership with your ERP provider. Their perspective on industry trends and best practices could be invaluable. They can also help keep you up to speed on new releases and updates for your ERP that can help you gain even more value out of it.

View your ERP as a strategic lever 

The implementation of the right ERP can serve as an opportunity to redefine operational paradigms, become more efficient, and fortify your competitive edge while ensuring dcaa compliance with government regulations.

This is why at each stage, from recognition to engagement, transition to customization, and beyond, your focus shouldn’t just be on using software, but on guiding your strategic approach to meet regulatory requirements. For GovCons, every dime saved, every second gained, and every compliance line aced can help improve and grow your business. And a well-implemented ERP can be an invaluable tool to equip you for more and more victories.

ERP Implementation Checklist for Government Contractors

Here is an interactive checklist you can use to make sure your ERP is well-implemented at every stage.

Download a printable checklist

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