More and more organizations are turning to ERP systems to assist in the growth and reach of their businesses. The ERP market size is expected to exceed $49 billion dollars by 2020. This cements ERPs worth and value to the business community. Looking ahead, growth rates of ERP will be between 6.9% to 7.2% in the coming years. 

Since ERP systems are becoming crucial assets, it’s important that an organization’s ERP system is functioning at peak efficiency. Thus, providing the most return on investment (RoI). The best way to ensure RoI on an ERP system is to avoid common mistakes that can take a great system and turn it into a costly headache.

The Top 5 ERP Mistakes to Avoid

Per a CIO.com article here are the top 5 ERP mistakes to avoid.

Mistake Number 1: Not doing careful requirements gathering

It’s critical that processes that will be controlled by an ERP system are the right processes for an organization. Specifically, automating inefficient and outdated procedures will merely highlight the deficiencies that much more.

Mistake Number 2: Not Including End-users in the decision-making process

Many times, when ERP systems are being developed, actual end users are not being brought into the conversation early enough. Oftentimes, the designers of the ERP system won’t have the first-hand knowledge that users have, and simple tweaks can increase user productivity. Feedback should be elicited from end users early in the process to obtain buy-in and stave off potential user disruption.

Mistake Number 3: Poorly Executed Implementation

Implementation can be a very challenging time. Implementation must be well thought out and, where possible, phased in gradually so as not to overwhelm users and disrupt productivity. A gradual phase-in also allows problems to be identified early and with much less impact.

Mistake Number 3: Not properly budgeting for technology staff or outside support services

Not having staff within your organization who are well trained in aspects of your ERP system can cause many issues. If an in-house staff isn’t an option, make sure that you have at the ready consultants or solutions providers who can assist with any issues that occur during not only the implementation phase of your system but for the entire lifetime of your ERP system.

Mistake Number 4: Not thinking about how your entire organization will interact with your ERP system

Today, many organizations live and breathe on mobile devices and apps. Furthermore, these devices and apps allow them to conduct business while on the go. In this regard, the way these mobile devices and apps are used and how they will interact with an organization’s ERP system must be considered. ERP systems must be tested for compatibility with favored mobile devices and solutions need to be identified if there are any compatibility issues.

Mistake Number 5: Not having a Maintenance Plan

Many IT executives get so focused on the ‘end goal’ of implementing an ERP system, that they forget to think about the long-term impact of such a system; making sure there is a schedule in place for updates, testing, and enhancements are key. This ensures having a fully functioning ERP system at the ready, 24/7/365. Without regular, scheduled maintenance, these systems can lose efficiency and can suffer major deficiencies, especially in the areas of security.

Prevention is Key

The best measure against ERP mistakes is to ensure an organization’s system has been designed thoughtfully. Secondly, an implementation must be well planned and executed. Lastly, the job isn’t over once implementation is complete. A system needs careful guidance and maintenance to reach its full potential. The best way to prevent mistakes at all critical junctures is to seek the guidance and assistance of professional solutions providers to reduce the chance of lost productivity and to prevent headaches along the way.

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1: It’s All About the Cloud

Cloud computing has brought a major shift to ERP systems. With the advent of cloud computing, companies no longer need to make enormous investments in architecture, multi-year licenses, and operations and maintenance. Today’s ERP systems are moving towards a Software as a Service model. This allows smaller companies to purchase only what they need and offload all of the heavy lifting to firms that have the required expertise to manage these complex systems.

2: Mobile

More and more firms use mobile devices and apps to do business. As a result, it’s imperative that ERP systems can be viewed on small screens and on compatible mobile technology platforms (Andriod, iOs). It’s also necessary that certain mobile workforce apps can be utilized and can integrate with an ERP system.

3: Internet of Things

IoT is an emerging field that needs to be considered when planning for a new ERP system. Every device your ERP system interacts with should be evaluated to ensure tighter integration. Furthermore, if an ERP system can’t fully integrate with all of an organization’s various devices, including IoT, it may be time to upgrade.

4: Security

Information security is making headlines every day with things like ransomware attacks freezing critical ERP systems (like the recent NotPetya outbreak that impacted Maersk and other large global logistics companies among others.) If an ERP system lacks security awareness and enhanced security measures, the system may be vulnerable to attack. Thus, newer ERP systems are better positioned to guard against new threats.

5: Integration

An ERP system is only as strong as its ability to integrate with other applications or software. If an ERP system can’t fully support certain modern-day applications (such as CRM software, new PoS implementations such as Square or other mobile PoS platforms, etc.) or software, it may be time to re-think the existing system.

Implementation Concerns: Learn from Under Armour

The above notwithstanding, an organization needs to thoroughly think about implementation when considering a new system. In October 2017, Under Armour reported less than desired earnings. They blamed their poor numbers on the implementation of a new ERP system. Due to issues with deployment, their ERP system negatively affected change management. This caused ripples through their supply chain and severely impacting their bottom line.

A Critical Assessment: Room for Improvement

When in doubt, consult a solutions provider for an assessment to determine if it’s time to invest in a new ERP system.  They will be able to provide guidance on the best fit for your organization. In addition, a solutions provider will also craft a successful implementation strategy. This will assure the most cost-effective and best solution for your situation.

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In today’s day and age, businesses must do more with less, and ERP is a valuable item in the business toolkit that can allow any organization to save time, money, and create synergy among its many moving parts. Businesses focused on financial and manufacturing are some of the many companies that can benefit greatly from an ERP implementation.

In 2017, ERP News listed Information Integration, Standardization, and Automation as the benefits of ERP implementation.

Information Integration

Think of the amount and various types of information that your company processes every day. ERP allows this data to be pulled together from multiple sources for a more streamlined collection which can save time and money. In many cases, pulling data together from across the company can help provide insights. These insights enable efficiencies in supply and cost management. It can also ensure that a company’s working capital is saved for where it is needed the most.

Standardization

ERP ensures that the information collected from various departments meets minimum reporting standards. This allows for better integration using compatible and complementary formats. With a standard format, data can be more easily collected and synthesized allowing for faster, more robust analytics driving key business insights.

Automation

Day to day administrative tasks can be a big headache and a massive time sink for employees. ERP can be utilized to automate simple tasks such as collection and data conversion. This frees up time that employees can use to focus on more strategic thinking. ERP can also be used to automatically validate existing data such as customer contact and billing information. Thus, shortening the time between delivery and payment by eliminating errors or typos.

Is ERP for you?

Before introducing ERP into an organization, it should do an internal assessment to discover what their individual needs are and what processes it can help with. When in doubt, it’s best to consult a professional solutions provider to aid in your organization’s design and creation of a new ERP solution to ensure you make the best investment for your business and your employees. They will also be able to tailor a training plan that will best prepare your organization for a successful implementation.

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