ERP implementations to a greater extent streamline business processes and deliver a return on investments. However, in a few instances, businesses fail to get ROI. So what do they do wrong?
- Sufficient resources for employee training
Companies which decide on a unique value proposition like the ERP at the top-level management and shove the idea down the throats of their staff are bound to fail just like those that invest meager resources.
Employees are the end-users of the ERP and it is only in good faith that businesses devote their valuable time and money to achieve the ROI they so dearly yearn. This training should start well before an ERP vendor is identified. Additionally, the company could identify individuals within its employ who should be tasked with the implementation process.
These should be Software program implementers who are trained by experts to solve all issues arising from the implementation phase of ERP. When familiar faces are available for consultation, employees are more likely to embrace ERP and help the company move forward.
During the evaluation stage, an ERP consultant should be communicated to about the specific ERP needs of the business and what the ERP software should achieve upon successful implementation.
During this budget process, business should settle on an ERP program that is industry-specific and integrates with its business processes and aspirations. Purchasing an ERP just because it is the flashiest or most popular may result in difficulties in implementation resulting in major disruptions and wastage of money.
A great ERP consultant should reliably inform the business on the most cost-effective ERP program that blends with the business processes and could cut down on future costs.
- Improved operations
Before a business decides to purchase ERP software, key among its considerations is why it actually needs the Enterprise Resource Planning, and which processes does the business stand to improve.
The specific ERP software, therefore, should be capable of streamlining the existing business processes in the company to cut costs, save time and eliminate errors in the system. All these processes and the end results should be communicated to the ERP consultant before the right vendor and the best industry-specific ERP is settled on.
Because most business processes are similar across the board, there may be no urgent reason for customization. Industry experts advise businesses to keep the ERP simple and efficient.
Greg Palesano, who is the executive vice president, Applications Services, HCL Technologies, says: “Keep it simple and try not to allow customization into your ERP program.”
- Change Management and disruptions
ERP projects result in significant disruptions in the business environment. These disruptions may not only involve software and processes but also employees and positions. Employees and other business stakeholders would want to know how the ERP will influence their operations. Similarly, suppliers would also want to know how they have to deliver supplies and how the payments are to be affected.
The ERP should be used as an accessory towards a more targeted and streamlined business process to yield a profit. When a business goes into the boardroom with all these considerations in mind, the consultant will have a better picture of the ideals of that institution and offer the best solution.