6 ways to make the most of the ERP system

Date: 31-01-2019
Author: Alina Răfoi

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Implementing an ERP system is an expensive initiative, both in terms of time and money, and its benefits are seen in time and only if implementation is done correctly. Panorama Consulting, however, announces that 1 out of 5 implementation projects are subject to failure.

How to make sure you implement the right ERP solution? Here are some suggestions.

 

Choosing the ERP solution

 

Choose the ERP solution that suits the needs of your business and your industry. Create a list of requirements from the right solution search stage, as this will then lead to a smooth implementation process. Ensure that the solution succeeds in covering the entire list of requirements of all departments or at least as large as possible to avoid possible costs with the development of the functionalities that the chosen ERP solution does not have.

 

TCO (Total Cost of Ownership)

 

Take into account the total cost of ownership, especially if you have to choose between ERP in cloud or ERP on-premise. The software itself costs money, but do not forget about the hardware you might need, the costs of consulting, the costs with the internal resources you use during the implementation process, or the upgrade costs of ERP system to newer versions.

 

The right partner

 

Just like in life, make sure you go along with the right partner. Not only the software solution is important but also the implementation, consulting and support services. In vain, the software solution persuades you if, after completing the deployment process, the solution provider forgot to respond to your support requests.

 

The roadmap

 

When integrating a new employee into the firm, a roadmap is developed to indicate which is the integration process with all the steps involved, who are responsible for the new employee's integration, training and coaching, and what are the goals over time. The same must be true when implementing ERP. An implementation roadmap helps you plan and control this process more closely, detail all the functionalities, but also any improvements or customizations you may need, what are the steps to be taken, who are the actors involved in the process, and which are the objectives, both in the short and the long term.

 

The team

 

Set up the interdepartmental team that will be involved in the implementation process and set the exact role of each team member as well as the decision-making level and a clear escalation pathway for each person so that they know very clearly when and to whom they can ask for help with decisions beyond their authority.

 

The training

 

The most important resources of a company are people, so it is important not to neglect the training part. Create a complete training plan for all ERP system users and make sure they have all the support for them to successfully adapt to using this new system. An unprepared employee who does not fully understand how the system works can become frustrated and can search for methods of scraping the system. If you neglect training for financial reasons, it may prove that this move is much more costly than the potential economy you are doing.

 

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