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An ERP system is the large, digital brain of a company. In other words, a comprehensive software solution that integrates and manages all of an organisation's business processes on a central platform – just like a brain. An ERP (Enterprise Resource Planning) system enables the efficient management and optimisation of various areas of a company – such as finance, human resources, production and logistics – by collecting and analysing data in real time and making it available for informed decisions.
Why is it so difficult to find ERP experts? After briefly visualising how extensive, intertwined and also individual (every company is different) such a system can be or become, the answer is obvious. As challenging, multi-layered and complex as the work of ERP professionals is, the same applies to the recruitment of these individuals. ERP consultants are in high demand due to their broad knowledge and skills.
This is because these specialists combine business knowledge with technical expertise and are proficient in systems such as SAP or (Microsoft) Dynamics 365 Business Central. Choosing the wrong ERP system can cost companies dearly. But it's not just technical skills that count. A good understanding of the specific business processes of the company in question is no less important. This is what makes the search for suitable candidates so complex and time-consuming.
In this article, we will explore what skills and qualifications ERP experts need to have, how to recognise them and how to recruit them successfully. We will also take a look at the importance of soft skills and cultural fit – critical parameters that are often overlooked.
How can you recognise ERP experts?
Recognising ERP experts can be just as complex as the system itself. On the one hand, these specialists must have in-depth knowledge of the exact modules that an ERP system needs for your organisation. Furthermore, these specialists must understand your individual business processes and be able to optimise them using a customised ERP system. Here are some key aspects to look out for:
Technical skills and experience: The foundation is a sound understanding of key ERP systems such as SAP or Dynamics 365 Business Central (formerly known as Navision). This means the ability to implement, configure, maintain and optimise these systems. ERP experts need comprehensive knowledge of business informatics and database management, such as classic MySQL or Microsoft Access. They should also be familiar with the specific modules that are relevant to your company, such as financial accounting, production planning or warehouse management.
Project management skills: At the top of the list of competences is the ability to manage projects effectively. ERP implementations can be compared to the work of heart surgeons – highly complex, open heart surgery and mistakes are fatal – careful planning and coordination are critical. Candidates should have a high level of expertise in project management and be able to complete projects on time and within budget. They must also be prepared to work with different stakeholders and take their requirements into account.
Analytical and problem-solving skills: ERP experts need to analyse data and make informed decisions. This includes the ability to understand and optimise business processes and solve problems quickly and efficiently. Strong analytical thinking and the ability to recognise complex interrelationships form the basis for this.
Communication and social skills: As a simple rule of thumb, the higher the number of stakeholders, the better the soft skills need to be. Especially communication. ERP experts must therefore be able to communicate highly effectively and convey complex technical information clearly and comprehensibly. Other soft skills include the ability to work in a team and a high level of customer orientation in order to successfully collaborate with other departments and external partners.
Industry-specific knowledge: Different industries have different requirements for ERP systems, and a deep understanding of these requirements can make the implementation process easier – and significantly so.
These candidates should be emphasised. Of course, there are also different industries that have similar requirements for ERP systems – if a candidate can successfully argue this fact, this person will position themselves among your favourites.
Industry-specific ERP requirements
Speaking of industry-specific knowledge. The implementation of an ERP system therefore depends heavily on the specific requirements of the respective industry. At the same time, every company has individual processes and needs that an ERP system must support. The trick is to map individual requirements, processes and needs in an ERP system in the best possible way and at the same time take future developments (scaling, technological progress, etc.) into account. Let's take a look at a few industries:
Production and manufacturing: In the production industry, ERP systems are the central hub for planning and controlling manufacturing processes. These systems offer specialised modules for production planning, inventory management and quality control. These systems enable the seamless integration of production and logistics processes, resulting in greater efficiency and lower costs. Specialised modules (such as SAP or Dynamics 365 Business Central) cover all aspects of production management, from material requirements planning (MRP) and production control to production performance tracking and quality assurance. They also provide real-time insight into production status, enabling rapid adaptation to changes in demand or supply chain. By automating and optimising these processes, companies can reduce their production costs and improve product quality at the same time. This is particularly important in sectors with complex manufacturing requirements, such as the automotive or electronics industry.
Retail: In retail, ERP systems manage stock levels, points of sale and supply chains. One challenge in this industry is the need to obtain real-time data on stock levels and sales figures. ERP systems must react quickly and flexibly to changes in demand. Functions such as inventory management and point-of-sale management become particularly important to ensure smooth operations.
Healthcare: In the healthcare sector, ERP systems support the management of patient data, billing and medical resources. The integration of ERP modules with other IT systems – such as electronic patient records and billing systems – is particularly in demand here. In some cases, legacy systems are used here that have been in use for 30 or even 40 years. Furthermore, ERP solutions in healthcare must fulfil the highest standards of data security and compliance in order to protect sensitive patient data.
Service industry: For service companies, modules for project and resource planning take centre stage. ERP systems must be able to record working hours, plan projects and optimise employee capacity utilisation. The ability to manage service level agreements (SLAs) and measure customer satisfaction is a particular aspect for ERP solutions in this sector.
Financial services: In the financial services industry, the focus is on managing financial transactions, regulatory compliance and risk management. ERP systems must be able to process complex financial data and generate comprehensive reports. Another important aspect is the integration of ERP systems with other financial software solutions to ensure a consistent and accurate database.
Knowledge of industry-specific requirements is the best guarantee for companies to map individual requirements, processes and needs in an ERP system in the best possible way and to find the right experts for this. They can then ensure that the ERP system optimally supports the specific business processes and delivers the desired results.
Overcoming hiring barriers for ERP experts
Companies can significantly improve their chances of hiring ERP experts if they keep a few basic things in mind. Here are specific barriers that need to be overcome and strategies to welcome ERP experts:
Lack of training opportunities
At the top of ERP professionals' list is the desire to expand their skills and continue their education. Companies should therefore offer advanced training and certification programmes to increase their attractiveness as an employer. Continuous advanced training is an important factor for the satisfaction and retention of professionals – even beyond enterprise resource planning. We address this topic in detail in our article "Overcoming technological challenges in IT consulting with Learning and Development".
Specific technical requirements
Industry-specific knowledge is essential for ERP experts. Companies should therefore specifically look for candidates who have experience in the relevant industry. For example, companies in the retail sector need experts who are familiar with warehouse management and inventory control modules. A detailed job description that clearly highlights these specific requirements, as well as querying the requirements at the beginning of the recruitment process, will help to identify the right candidates.
Lengthy recruitment processes
Long recruitment processes usually lead to qualified candidates dropping out and accepting offers from competitor companies. To overcome this barrier, companies should organise their recruitment process efficiently. Clear communication channels and quick feedback and instructions are crucial here. In addition, working with specialised recruitment consultancies and headhunters who know the market well and have access to an extensive network can speed up the process. At PALTRON, we are ERP / SAP headhunters.
Cultural fit and soft skills
ERP implementations are always team-orientated projects where flawless communication and collaboration are fundamental. Companies should therefore also assess soft skills such as teamwork and communication skills in their recruitment process. This area is often underestimated, which is why we will look at it in detail in the next chapter.
Cultural Fit and Soft Skills: Beyond the Technical
As we stated earlier, recruiting ERP experts requires more than just assessing technical skills. Successful ERP consultants must also fit smoothly into the corporate culture and have strong interpersonal skills. Keyword: cultural fit – cultural fit encompasses values, forms of communication and the shared vision within a company. Wherever people work together, the aim is to harmonise these things. Here are some specific industry insights that highlight these aspects and how they can be specifically assessed.
Effective communication in IT projects
We've already talked about the importance of communication – ERP
ERP professionals need to make technical information understandable to non-technical stakeholders and ensure that everyone involved understands the project goals and requirements. This skill is especially valued in industries such as healthcare and manufacturing, where the need for this is strongest.
Adaptability in changing industries
The ability to adapt quickly to new processes and technologies is not only of fundamental importance in the dynamic ERP sector. In the manufacturing industry, where new production technologies and automation systems are constantly being introduced, ERP experts need to be flexible and willing to learn. Companies are therefore specifically looking for candidates who have successfully implemented new systems or optimised existing processes in previous roles and are familiar with the relevant modules.
A proactive approach to problem solving in retail
In retail, solving problems quickly is a must in order to minimise downtime and keep customer satisfaction high. ERP experts must not only react to problems, but should proactively identify and implement improvements before issues arise. Due to the volatile nature of retail, ERP consultants are expected to recognise problematic processes and opportunities for improvement unprompted and independently.
Leadership skills in large projects
In large organisations, especially in the manufacturing and finance industries, ERP experts often take on leadership roles in their key position. They need to be able to lead teams, monitor project progress and ensure deadlines are met. Strong leadership skills plus the ability to manage multiple projects and a range of stakeholders simultaneously are particularly in demand in these industries.
Cultural fit in global companies
Cultural fit is particularly important in global companies – and yet it applies equally to every company. ERP experts should understand the corporate culture and become part of it in order to work effectively in multicultural teams. In the logistics industry, which is heavily characterised by international business relationships, intercultural competence is a critical success factor. At the lowest level of any partnership is communication. Confident ERP consultants communicate confidently and are aware of different communication styles.
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