ERP software is an enterprise management tool to help companies manage their critical business processes through integration and streamlining of key processes. This results in eased back-office functions related to supply chain, sales, accounting and many others.
Yet, there is a myth associated that ERP implementation is quite stressful and complicated. Though ERP implementation is challenging, with right approach and vendor, this process can be simplified. Statistics suggest ERP solution slashes the operational cost involved in setting up an IT infrastructure by 11%.
When companies think of long-term, it is important they pay attention to every facet they are investing in. Therefore, one must be aware of the fact that even if an ERP system comes with a lot of benefits, it also has challenges and complexities that need to be addressed systematically. It is better to always opt for the best software vendor with proven industry expertise and resources.
Here are 5 tips that will help avoid ERP pitfalls:
- Define clear scope: More than a necessity, ERP implementation has become a trend that is being followed by most of the companies without giving a proper thought to why they need such type of solution in first place. Many companies adopt an ERP system but ignore the specifics related to their goals and KPIs. Therefore, with a clear and comprehensive document that define goals and performance metrics, companies can avoid ERP implementation failure through reduced error rate and improved service quality.
- Engage every member of the team: One of the major focuses of ERP is to collaborate different departments onto a single integrated platform. For this very reason, it is important that companies engage the project-dedicated resources to help them perform seamlessly. Not only the team members, but also the stakeholders should be introduced to ERP software operation. Its real-time visibility feature will help management make better decisions.
- Crisis management: No matter how well you plan to avoid the failure, there could be unexpected and disruptive occurrences that threaten the organization’s overall health. Therefore, it is must for companies to prepare a risk management contingency plan that calls for proper testing, timely upgrades, employee training and operational security.
- Accept the change: Make sure the company is ready for the change and that everyone should get involved equally to attain the specific goals. In order to implement the new ERP system within the organization, employees should get rid of the pre-occupied mindset formed by the older systems. Implementing a new ERP system will bring certain changes in workflows and processes and if the management and employees are not open to these changes, it will directly hamper the organization’s efficiency.
- Communication gap: If the communication between software vendor, employees, teams and management is inadequate, it will cause an obstacle for the implementation team. Instead of letting employee concerns go unanswered, promoting open communication from the start will keep the negativity at bay and create maximum project transparency. It is best advised to schedule regular sessions, circulate newsletters or project / feature updates and ensure proper documentation.
ERP implementation demands expertise because the complexities and challenges associated with it cannot be underestimated. The process requires good planning, careful coordination and team collaboration. Last but not the least, ERP pitfalls can be avoided by choosing the right ERP vendor that holds immense technical and industry expertise.
About the Author:
Kalyani writes about upcoming technologies like big data, machine learning, virtual reality, AI and robotics. Her expertise lies in growing the business opportunities by market qualified lead generation through inbound and outbound practices, majorly focusing on content. Kalyani works for Sage Software Solutions Pvt. Ltd., a leading provider of ERP and CRM software to small and mid-sized businesses in India.