Whether you are in the retail business or into the banking side, a crucial investment for your company is to deploy the right enterprise resource planning or ERP systems. Being a set of integrated applications it serves as a business process management tool. A lot of focus and investment goes into this area in order to effectively manage an organization’s business. One of the key benefits of ERP systems is the rigorous automation it brings along with it. It makes the processes smoother, more efficient thereby opening avenues for increasing returns on investment.
An information system comprises of data resources, networks, hardware, software, technologies and people. To manage all of these in a standalone process might send shivers to one’s mind. An integrated business tool that takes care of all of these is thereby a much sought after tool for companies trying to increase efficiencies. It is no surprise that an ERP system implementation involves a lot of risks and challenges and deploying it successfully can be a time taking and painful task. Such a change management initiative often is a top to bottom approach involving approvals from senior management.
Challenges in ERP Implementation
A major challenge in implementation of such system is the continual upgrades in their solutions. This wipes away some of the custom solutions built around earlier versions of the tool making it all the more difficult and challenging for companies to bear the extra loads of cost and addressing the change. There are also cloud based ERP platforms which are less expensive and preserve the features of custom solutions offering greater flexibility. While planning for an ERP implementation, many businesses often make some mistakes. Here we try to identify some of these and see how we can avoid making such fallacies.
Ways to Avoid Mistakes in ERP Implementation
Top – to – Bottom Approach
When implementation of technological systems is only in the hands of a few experts, the importance of the interlinkages between cross functional departments is easily overlooked. In a top-to-bottom approach, top management builds a clear picture of the business and develops an understanding of the benefits and costs of such systems for the overall business.
Specify Requirements Clearly
Choosing the right vendor is a critical task and it is of utmost importance to bring in the most value from it in the business. Often the common mistake organizations make is prioritizing on price, and use of trend instead of understanding the specific requirements of their business.
Get a Solution That Is Version and Device Scalable
Today, the world is getting mobile. And there is a lot of emphasis to invest into solutions that help you easy navigation and allows great productivity even when you’re accessing a platform from your smartphone, yet at the same time addressing security compliance.
Measure Client Satisfaction
Check with the vendor about references of some happy customers using their products. Also, enquire key questions that help build an idea around what worked well and what lacked in the solution
Train Resources On System
Knowledge management and a proper training schedule are very critical in the efficient functioning of an ERP platform once it is deployed. Time and effort needs to be taken to build skill set in order to use the solution to its best potential.
Deploy the ERP system in the best way to help your grow business in the desired way.