ERP is enterprise resource planning for software applications used by companies (non-profit organizations, government agencies) that they actually use to carry out their operations. Enterprise Resource Planning (ERP) software is a comprehensive business management system for any operation. Most business professionals have heard the term “ERP”, but they may not know exactly what enterprise resource planning software can do for their teams. It’s easy to fall into emerging business needs, new products or new features, or short-term problems that seem to be urgent solutions, but there are numerous ERP software and data management experts available to help you evaluate what’s best for your business.
While there are several tried and tested solutions that do not require a complete overhaul of your business, they will still require financial investment, commitment, and collaboration from multiple departments in your organization. With a solid ERP implementation plan, you can ensure you invest in the best solution for your business.
It’s best to start with a cost-benefit analysis to ensure that the benefits of migrating to a modern ERP system exceed the costs of existing, legacy systems. A successful ERP implementation requires careful consideration of all aspects of the business and compliance with software best practices. However, before embarking on a personal path, take a close look at your process-the predefined functions and configurations supported by modern ERP solutions are based on best practices collected from thousands of companies.
The Road to Success
For the majority of business units, ERP softwares can automate many error-prone tasks such as invoice reconciliation, customer invoicing, and order processing, and provide the information commands needed to be more efficient. ERP can be essential for better running your company; can help improve communication between previously disconnected departments; and more. For example, after an ERP is launched, things like employee responsibilities and transparency can change.
Designate leaders in each department who will influence change and keep them informed of how the implementation is progressing and how this will affect their responsibilities and their department. The Executive Sponsor should also be briefed by the Organizational Change Manager as the ERP implementation defines new business processes, roles, user interfaces, and job responsibilities. An agile approach to leadership can support the positive momentum of ERP adoption across cross-functional teams, resulting in a collaborative operating model. Planning is more effective when the ERP implementation organization leads the effort rather than relying on a consulting partner.
Depending on the speed of decision-making in your organization, effective planning may be required a month or two before starting the next phase of the project. While planning may not cover all future work, it’s required during implementation, from project initiation to post-launch management and support planning. Implementations often cause problems when project teams rush through the activity. Because of this, you might also need to plan how to keep the company on the sidelines during implementation.
ERP implementation errors can be significantly reduced if the business organization takes care of a few things before joining an ERP implementation project. This is because although the risk of implementing an ERP system from scratch has been reduced over the years, it’s still a daunting task, especially when the system must be customized to meet specific needs and requirements. In addition, ERP systems can be constructed differently, which can lead to additional considerations before implementing them. Sometimes organizations implement a new ERP system precisely because their existing solution was not implemented effectively and they see the new system as a tool to introduce new practices. An organization may want to implement an ERP system for many reasons, such as simplifying operations, reducing manual labor, improving customer satisfaction, or organizing business processes.
Based on our research in this segment, we found that approximately 36% of ERP implementation errors were due to organizations that were ineffectively meeting functional requirements for the software application.
An interesting paradox is that although ERP conversions are sometimes implemented to correct organizational deficiencies, these deficiencies can also hinder the success of ERP projects. ERP implementation can help your company optimize its processes and achieve its goals, but it’s an extremely complex process. Regardless of the size of your business, whether you are implementing ERP software for the first time or changing your system, ERP projects are time and resource-intensive.
Final Thoughts
Reducing project costs right from the start not only gives you a head start but also provides a solid foundation for long-term success and return on investment (ROI).
Sometimes people are good at considering all the hard costs associated with an ERP implementation, but they overlook or underestimate the minor costs, such as the time and resources required to determine if existing business processes need to be changed to get the best results with new ones. solutions and training so that users can be productive with the new system. The amount you can expect to pay for ERP will depend on a number of factors, ranging from company size, requirements, and a number of users, but a recent 2019 Software Path report found that the average companies spend on average around $7,200 per system user.
This is why a cloud-based ERP system is generally the best option for small businesses — it has lower upfront costs, faster setup times, and fewer technical resources than on-premises or hybrid options. If you choose to use cloud-based ERP, it will change (and usually simplify) the rest of the implementation process. These ERP solutions are easier to customize than previous legacy solutions. Proper implementation will maximize the value of your new system so you can quickly take advantage of the process and efficiency improvements that the software provides.
Companies that fail to develop and implement a software implementation plan may not realize the full benefits of the tool, risking wasted time and money. To avoid shifting the scope of work, we recommend that you use some project management tools and best practices for your software implementation plan.
AUTHOR BIO:
XcelPros Team
At XcelPros – A Microsoft Dynamics Partner, Our team brings together years of experience and a high level of technical expertise. We strive to generate high-quality, engaging content with up-to-date information from reliable sources.
