Enterprise resource planning, or ERP, is your company’s lifeline. It’s where you go to manage all of your day-to-day activities, including all of your accounting, supply chain operations, and even HR. In the last 10 years you can, these systems have become easier to implement, train users and maintain. That does not mean challenges don’t exist. The questions become how can companies improve their approach to complex large-scale systems. Below, you can find some of the most common ERP mistakes organizations make when it comes to enterprise resource management as well as some excellent advice for resolution.
1. Automating Existing Processes without Adapting Them
An enterprise resource management platform is one of the most wonderful tools ever developed, but it only lives up to its full potential when it is used in the way it was intended. Ideally, you will want to utilize an ERP system that allows you to integrate all of your day-to-day operations, but the truth is that you will inevitably need to make a few adjustments along the way in order to get the most out of the platform. If you automate a series of bad processes, the processes don’t improve; they just run faster. To resolve this, see the implementation of a new ERP system as an opportunity to identify areas where you can improve your existing processes.
2. Excluding End Users from the Decision-Making Process
It is certainly important to focus your time and energy on making sure that your leadership executives and stakeholders approve of the implementation of the enterprise resource planning system, but if you’re leaving out your end-users in the process, it can spell disaster. Take the time to consider who will be affected by the ERP system, and then talk to them about their concerns, fears, and their needs. Ultimately, this is going to make the processes involved in selecting and implementing an ERP platform as smooth as possible. Not to mention your employees can provide vital information about how your existing processes work – documented or not.
3. Failing to Compare On-Site and Cloud-Based ERP Options
When it comes to determining what kind of ERP solution is best for your organization, there are several things to consider. If you’re interested in cloud-based ERP, then you’ll need the right kind of connectivity, and you’ll need to be required to make recurring payments to maintain access to that cloud. On the other hand, if you will have your ERP solution on-premises, then you’ll need to budget for higher up-front costs and a dedicated IT team to keep everything running smoothly into the future. Finally, think about your need for customization, your industry-specific needs, and how well the system will integrate with any legacy programs you might still utilize in your organization.
4. Focusing Only on the Features
If there’s one mistake that companies make surrounding ERP systems and their implementation, it’s the mistake of being so caught up in the features that they forget to even consider the platform’s success history within their own industries, the customization and flexibility it offers, and the ability to integrate with existing systems. These are all critical considerations and overlooking any of them can cause serious disruption in the workplace within every single department at every single level.
In Short…
ERP solutions have come a long way in the last several years, and because of this, there are more options on the market than ever before. Whether you choose Software as a Service (SaaS) or on-premises ERP, pay close attention to the mistakes listed above and avoid making them at all costs. This will ensure a smoother, less painful transition. Not to mention the amount of time, money, and effort rework takes, why bother.
