The Top 5 ERP: Expectations vs. Reality
Enterprise Resource Planning (ERP) software is a very powerful tool that can transform the way a business operates. It serves as a single repository where you can track the operations related to different functions of the business like purchases, inventory, manufacturing, sales, accounts, payroll, and more.
Since different departments access ERP systems to communicate and collaborate on business functions it is important to be clear about the pros and cons of ERP implementation. This can help in setting realistic expectations on implementing ERP software.
The Top 5 ERP: Expectations vs. Reality
Organizations can have large expectations from ERP. It is also important to know the reality of implementation to set expectations alike for both ERP buyers and vendors. Here we are with the top 5 Enterprise Resource Planning: Expectations vs. Reality that will guide you through the selection, implementation, and post-implementation phase of an ERP solution:
All integrations are not feasible in an ERP Software
Most users believe that all integrations are possible in ERP software. While it is most common for ERP integration with solutions like barcode reader, biometrics, tally, SMS alerts, Email, etc., not all systems can be integrated with components including artificial intelligence due to the large time and cost involved in AI integration. Though it is true to a great extent but not all. If your ERP is an obsolete one, it has already become redundant and hence may not be technologically advanced enough to be integrated with other solutions. It is best to keep the expectations realistic and transparent.
Successful ERP implementation is a combined effort of Vendor and User
Most organizations believe that their work is done by signing an ERP implementation contract. This is like bringing home a fan and expecting it to plug itself and give you some cool air. Once you bring home a fan, you have to unpack it, study the user manual carefully, connect it with power, and switch it on. Likewise, ERP implementation also requires effort from the user’s end. A combined effort on part of both vendor and user will help it become an important tool that will aid smart business decisions in the future. The user’s work begins right from understanding the need for ERP implementation. From outlining and sharing detailed requirements with the vendor, conveying the role of ERP among staff, managing change, addressing employee concerns, intense user testing, training, to working closely with the vendor’s team for successful implementation – these are some of the areas where the user has to participate actively.
Even the best of system implementations fail due to lack of user participation because of gaps in conveying requirements, training, and communication. Remember Automation does not happen automatically – Somebody needs to press the right buttons!
Investing Quality Training Time by User and Vendor creates ERP Success
ERP implementation is often viewed as a reason for employee attrition. It is important to communicate with the employees about changes that they may face with the implementation. Training them about functional and practical aspects of ERP usage will help clarify their concerns. It will also make employees realize how ERP software will aid their job roles for a further effective level. At a later stage, it will help them to take up newer job roles with better positions, pay, and satisfaction. To gain the most from ERP systems, it is essential that the end-user, as well as the vendor, invests in quality training time.
Selecting ERP Vendor based on Cost is like Selecting a Car just because of its Color
Whether it is a new implementation or shifting from the legacy system to an updated one – cost stands to be the most influencing factor for many businesses. Software may not be right for your organizational functionality just because of the price factor. Important is to consider other factors like requirements, functionality, implementation plan, its suitability for your organizational process, user-friendliness, mobile-friendly, access on the go, data security, maintenance, and more. Ensure you evaluate all the criteria before selecting a software vendor to meet your ERP requirements.
Management Participation is Essential for Successful ERP Implementation
Implementing ERP is an extremely demanding task. It requires efforts from all quarters of vendors and implementing organizations. Other than cost, it requires persistent commitment and effort from both parties. While the importance of user participation has been discussed above, the involvement of management is equally important. Only the management can set the roles, responsibilities, and accountability of their employees. Also, management’s involvement brings in increased accountability on the part of their employees.
Organizations can gain the most from implementing ERP software by the active effort from management, employees, and the ERP vendors. All three parties need to be equally involved in the project so that the purpose of implementation can be met seamlessly.
No matter what your implementation expectations are, keep in mind these realities which can help to set realistic expectations. ERP consultants at Turqosoft can help your business define your business processes & KPIs. Get advice on how you can leverage technology for the growth of your business. Connect with us through email firstname.lastname@example.org or call us on +91 9841205845. Also, you can follow us on LinkedIn, Facebook, Twitter, or Instagram for a regular dose of interesting updates.